The Strauss Group Company Presentation April 2015
Strauss Group - Overview A food and beverage company active in More than 20 countries with a strong home base Israel s second-largest food group The world s fourth largest coffee company in the world The US market leader in dips and spreads Israel s leading water company Strategic partnerships with companies such as Danone, PepsiCo, Haier, Sãu Miguel Employs 14,000 people in Israel and worldwide Our turnover in 2014: NIS 8.1 billion (approx. $2.28 billion) AA+ credit rating Among the top ten companies in the Ma ala Index for Corporate Responsibility
Strauss Group Organizational Structure Strauss Group Strauss Family 64.68% Public 35.32% 20% Strauss Israel Dairy 25.1% Strauss Coffee Max Brenner PepsiCo-Strauss Dips & Spreads Brazil 50% USA Sabra Obela Strauss Water Israel 12% Yotvata 50% Israel Israel USA Mexico UK 28% 50% 49% Confectionery Salty Snacks Salads Yad Mordechai Poland Romania Russia Serbia Ukraine Australia Singapore Japan Russia Canada 50% Australia China Business Partners Network 50% Last update: 31.3.2015
Israel International Growth story Net Consolidated Sales (Million NIS) CAGR: 4.6% 5,961 2,688 6,246 6,373 2,933 3,018 +4.8% +2% +7.5% 6,855 3,154 +12.3% 7,699 3,760 +6.3% -0.5% -0.0% 8,182 8,143 8,140 4,143 3,999 4012 3,273 3,312 3,355 3,701 3,939 4,039 4,144 4,128 2007 2008 2009 2010 2011 2012 2013 2014
Strauss global presence Norway Canada England The Netherlands Germany Finland Poland Ukraine CIS Switzerland Mexico Japan Portugal Serbia China North America Romania Israel Cyprus Singapore Costa Rica Brazil Australia
A company with A SPECIAL WAY
A journey leading us toward the achievement of our objectives : Improve the quality of life of our consumers Continue to grow with our strategic partners Develop new horizons Succeed through new concepts and categories Bring together our multi-cultural team
Our Mission: Creating Wonders out of The mission defines what we are here for, what is the heart and soul of the organization, our purpose - not merely our objectives, but rather what gives meaning to our existence as a company and to our daily work. Basics
A Special Way Does Special Business
Strauss Israel
Strauss in Israel Our Home Base ~5,700 employees 11 plants 27 brands
Strauss in Israel Meeting various needs Diverse touch points Diverse sales channels
Strauss Israel Among the top TEN Best Companies to Work for in 2014 One of the top ten most social employers" of 2014 Platinum rating in the Maala CSR Index for the eight consecutive year The biggest advertiser in Israel
Strauss Israel market share 2014 #1 78% 90% 63% 49% 45% 45% 29% #1 #1 #1 #1 #1 #1 #1 #1 * R&G Coffee Chocolate World Freshly cut vegetables Cream desserts Flavored milk drinks Yogurt Wafers * Value MS 70% of Strauss products hold No.1 market positions
Strauss Israel market share 2014 #2 31% 35% 34% 40% 24% 18% #2 #2 #2 #2 #2 #2 Chewing gum Salty snacks Cheese Chilled salads Cakes Instant coffee * * Value MS
Strauss Coffee
We took our know-how in coffee and our consumer insights We added our entrepreneurial spirit and our desire to connect with people all over the world We added our ability to locate new markets
Going International 1991 1994 1998 1998 2000 2001 2005 2005 2005 2008 2009 2010 2011 2011 2012 2012 2013 2014 2014
Strauss Brazil 2014 Number 1 coffee player in Brazil Average Market Share for the year 2014 in the R&G category: 22.6% (Total Brazil according to A.C. Nielsen) Sales in Tons for 2014 Total 267,225, R&G 141,608, Green Coffee Beans Exports 47,940 Corn Grain products 46,677, Coffee Drinks and Other Products 31,000 Number of Employees: 5,279
CIS Russia, Ukraine 2014 Russia Active in the instant freeze dried and roast & ground sectors Average 2014 value market share: roast & ground &beans 9.8%, instant freeze dried 9.4% Tons sold 2014: 12,268 Number of employees: 538 in Russia Ukraine Active in the instant and roast & ground sectors Tons sold 2014: 7,055 Number of employees: 136
Romania 2014 Active in the roast & ground and Instant Sectors Average 2014 value market share: roast & ground 24.8%, Instant 39.9% Tons sold 2014: 9,512 Number of employees: 245
Israel 2014 Active in the roast & ground, instant and chocolate powdered drinks sectors Average 2014 value market share: roast & ground 78.9%, instant 39.9%, chocolate powdered drinks 81.1% Tons sold 2014: 12,041 Number of Employees: 672 including 435 in the Café Elite point of sales channel and 237 in the factories
Poland 2014 Active in the roast & ground sector Average 2014 value market share: roast & ground 18.9% Tons sold 2014: 14,395 Number of employees: 352
Serbia 2014 Active in the roast & ground sector Average 2014 value market share: roast & ground 33.2% Tons sold 2014: 7,919 Number of employees: 254
Global Strauss Coffee sales Sales (NIS Millions) 3,926 4,206 3,944 3,825 2,897 3,243 3,349 3,386 2,344 1,090 1,349 1,624 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
PepsiCo-Strauss Fresh Dips & Spreads
Milestones in development Acquisition of Sabra Partnership with PepsiCo Building a new plant in Virginia Launching in Mexico and Australia 2005 2007 2009 2012
Sabra s sales growth annual sales 14.6% 20.3% 360 20.3% 314 36.5% 261 217 JV with Frito Lay 35.8% 44.5% 159 22.2% 22 54.5% 34 61.8% 55 47.3% 81 110 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Market Shares 2005-2014 Dollar Share Refrigerated Flavored Spreads 2005 2014 10% Sabra Others 4% 7% 4% 31% 20% privat label 10% 22% 14% 3% cedars tribe Kraft 13% 63% *these figures are rounded upward Sabra is the only branded hummus gaining market share Source: IRI Reviews 12/2014
From hummus, to salsa, to... Fresher Products Guacamole - Mexico Salsa - California
Max Brenner
Max Brenner Brings people together, it makes fun a special pleasure By applying a unique engaging concept
58 Chocolate Bars 40 in Australia 6 in Israel 5 in the US 2 in Singapore 3 Japan 2 Russia
Strauss Water
Strauss Group identified in the drinking water category a strategic opportunity that is compatible with the Group Vision
Water - a natural environment for Strauss Group Improve consumers quality of life Social responsibility Ecological awareness
Strauss s Water Vision: Establish a leading global company that supplies water solutions, brining consumers back to using tap water
Strauss Water - Milestones Primo Family Signing an Agreement with HAIER Signing a Partnership agreement with Virgin Water Maker Filter 10 approvals Acquiring Tana Industries (Tami 4) Laying the groundwork for global expansion 2007 2009-2010 2011
Strauss Water Vision & Strategy: Breakthrough technology for safe and healthy water Tana Water World leader in POU appliances Skills & capabilities Proven residential business model Global Markets Growth opportunity Fragmented competition No global leader Leading global water brand
2010 Strauss s launching in China
Our product in China
Sales and Promotional stand
2012 Strauss Water launching in the UK
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