The troubles at Strauss come in bunches:
after the food giant's salmonella crisis and the fire at the candy factory, it turns out that a recent malfunction in the Strauss Cottage production line caused a lack of production and dragged the market into a shortage of cottages even at its competitors - Tnuva and Tara.
It should be noted that this is one of the popular products in Israel.
This is a technical fault that recently occurred at the Strauss dairies in Echihud.
About two weeks ago, there was a malfunction in the production line of Cottage Strauss in the dairies which, as mentioned, caused shortages in the entire market.
Naturally the demands increased because of the shortage and the one who had to compensate mainly for the shortages in the market is Tnuva, which dominates the cottage market, which dragged Tnuva to the shortage as well.
Shortage of cottages even among the competitors, photo: Gideon Markowitz
It should be noted that the problem at the Strauss factory has now been resolved and the usual quantities are being produced, which still cannot overcome the demands.
In a few days the stock should be back in order.
It was reported from Strauss that "due to a malfunction in the production line, there were localized deficiencies. The malfunction has been corrected and in the coming days the deficiencies will be completed."
As mentioned, this means that Strauss, following the malfunction, dramatically "cut" her cottage supply starting two weeks ago, and then as a result, the yield was reduced to a shortage.
It should be noted that this cottage is a fresh and sensitive product, with a short validity and complex inventory management, so the malfunction caused the market to run out of stock.
Strauss Cottage,
Strauss has started to return to cottage production and therefore it is starting to return to its market shares.
According to Storenext data, the market share of Cottage Strauss was about 17% in the last ten weeks.
About six weeks ago the market share was 17.8%, and about two weeks ago it was 8.7%.
Last week, Strauss managed to increase to 15.1%.
Strauss drank her cottage stock, and now, Tnuva also needs time to fill her stock because, as mentioned, it is a sensitive product that is more difficult to produce than Niger milk, and its shelf life is short.
It is estimated that the shortage will be resolved in about a week and a half.
The salmonella crisis and the departure of the CEO
The salmonella crisis
As you may remember, last April the food giant announced a recall for all the products produced at the factory in the Galilee landscape.
Nearly a billion shekels were "erased" from the market value of the Strauss company, with the stock falling by about 9% in three days, since the dramatic announcement of the presence of salmonella at the Nof HaGilil plant.
At the beginning of the week, Ofra Strauss, the chairman of the Strauss board of directors, announced the request of Giura Bar Dea to end his position. Bar Dea served for five years as president and CEO of the Strauss Group.
He served in a wide variety of management positions for 26 years.
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