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Bitter taste in the mouth: in Strauss calculates a new route Israel today

2022-08-09T20:08:37.541Z


The ouster of Giora Bar Dea illustrates how deep the management crisis that the company is going through is • The conclusion: in recent times Strauss has been conducted more like a small factory without supervision


Strauss tried at the beginning of the whole sad story to show that business in terms of company management is as usual, despite the biggest crisis in the company since its establishment, and one of the biggest food crises in Israel.

However, the dismissal of Giora Bar Dea illustrates how deep the management crisis the company is going through.

Unlike the recall that happens from time to time in the food sector, the situation revealed the dimensions of the company's deep management crisis.

The image that Strauss has earned over the years, and rightfully so, is that of an innovative company, which launches new and innovative products very frequently, and has also earned the image of a company with meticulous and polished factories.

As a result, consumers have expressed great confidence in it.

In practice, it became clear that recently Strauss was conducted more like a small factory without supervision.

Even in the industry they always talked about the strict factories of Strauss, while one of the results of the inspection was that pigeons were thrown into the factory.

It is also possible that the salmonella is a smoke screen. 

The fact that until today the factory has not returned to production is one of the biggest failures in the Israeli industry.

This is the second largest food company in the economy, and all of its chocolate products, which are manufactured in Elite factories, have been missing from the shelves for a long time.

As the one who controls the chocolate market, the losses are hundreds of millions of shekels, and it's not just the financial losses, but also an image loss.

Consumers are getting used to seeing other brands every day, and in the meantime they are forced to switch to other brands that "benefit" from the Strauss crisis.

Just to clarify: the salmonella crisis happened at the end of last April.

In April Strauss still held 51.1% of the chocolate market in individual units, according to Storenext data, while last July it fell to 5.3%.

Its competitors enjoyed themselves, as mentioned, and overnight gained market shares that they could not have dreamed of under any scenario.

Thus, for example, the Ferrero Israel company, importer of Ferrero, Kinder and more, jumped from 14.6% to 26.7%;

Mers Israel, importer of Mers, sneakers, M&Ms and more - also jumped from 12.3% to 25.8%;

Unilever Israel, the importer of the Click and Ward brands in the Galilee, rose from 11.3% to 17.3%.

Layman Schlissel, the importer of Ritter chocolate - from 6.5% to 15.3%.

What will happen to sales after Strauss resumes manufacturing its products, in terms of market shares?

time will tell.

In the meantime, the first to pay the price of the company's big default is likely, and presumably not the last.

As for the future of the company, after the departure of Bar Dea Strauss will continue to be a strong company.

The company lost a lot of money, but it will move on.

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Source: israelhayom

All news articles on 2022-08-09

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