Strauss Group Unveils 2027-2030 Strategy with 2 Billion Shekel Local Investment
Strauss Group unveiled its 2027-2030 strategic plan, committing over 2 billion shekels to Israeli infrastructure and targeting international growth in Brazil and Europe alongside a major control acquisition in Strauss Frito-Lay.
Strauss Group, led by CEO Shai Babad, unveiled its 2027-2030 strategic plan focusing on international expansion and strengthening its core operations in Israel. Dubbed "Winning with Loved Local Brands," the initiative entails investing over 2 billion shekels in Israeli production infrastructure and supply chains, expanding its food business in Brazil, and entering new categories across Europe.
Simultaneously, Strauss announced a move expected to yield a one-time accounting gain of 630-650 million shekels. The company issued an irrevocable purchase notice to PepsiCo to acquire approximately 0.1% of Strauss Frito-Lay shares for about 400,000 dollars. Following the acquisition, its stake in the joint venture will increase to roughly 50.1%, and Strauss is working to amend the shareholders' agreement to reflect its majority control.
Growth Targets and Global Expansion
Under the strategic plan, Strauss aims for an average annual volume sales growth of 3%-5% and an average annual net profit growth of 7%-9%. The company also targets double-digit annual growth in free cash flow, planning to allocate 5%-7% of its revenues to capital expenditures throughout the plan's duration.
In Israel, Strauss will focus on reinforcing its food and beverage division by expanding dairies, developing functional nutrition items, and broadening the product range of Strauss Water. Beyond factory and infrastructure investments, the group intends to pursue operational efficiencies and integrate artificial intelligence tools into its daily activities.
International Markets and Leadership Remarks
In Brazil, operating through the Três Corações joint venture, the group plans to expand beyond the coffee market by integrating the recently acquired Yoki business and broadening dry food offerings. Strauss will also evaluate entering new sectors and expanding into other Latin American countries.
Meanwhile, in Poland, Romania, and Ukraine, the group intends to further develop its coffee business and explore adjacent product categories, including through mergers and acquisitions. CEO Shai Babad noted that Strauss is entering this strategic cycle after successfully completing its previous roadmap, emphasizing continued investments in Israeli manufacturing alongside global growth.
