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					              to   Universal

from Unique
              ANNUAL REPORT 2010
      Creating Wonders
      Out of Basics
      We at Strauss work to
      enrich people’s quality of life
      by transforming the basics
      into a world of wonders.




                                                                                                              to   Universal
The Strauss vision is a true reflection of the company’s story from its very beginning to the present day.

This unique outlook, the desire to take the most basic element and turn it into something wonderful, is
today the core DNA of our company, both as a business approach and in the development of our products.

Our vision keeps driving us forward. We aspire to create a wonderful feeling and a feeling of wonder for
more and more people around the world. We aim to understand their needs and transform basic elements
into something special, to improve the quality of their life while developing innovative solutions for all.
                                                                                                              ANNUAL REPORT 2010
This is how our mission delivers added value… Creating Wonders Out of Basics
                                   from Peanuts



                                                                                               to Pleasures



                                          Contents

                                          LETTER TO      THE STRAUSS   FINANCIAL    BUSINESS   SOCIAL           CORPORATE    CORPORATE
                                          SHAREHOLDERS   GROUP         HIGHLIGHTS   REVIEW     RESPONSIBILITY   GOVERNANCE   DIRECTORY




Strauss Group 2010 Annual Report   4                                                                                                     5   2010 Annual Report Strauss Group
                                                     to Values
                                       from Vision
Strauss Group 2010 Annual Report   6
Letter tO
ShArehOLDerS,                                                                                                                                                                                                                                                    Ofra Strauss
                                                                                                                                                                                                                                                                 Chairperson of the Board of Directors
                                                                                                                                                                                                                                                                 Strauss Group
                                                                                                                                                                                                                                                                                                         Gadi Lesin
                                                                                                                                                                                                                                                                                                         President and Chief Executive Officer
                                                                                                                                                                                                                                                                                                         Strauss Group




                                                                                                                                                               2010 – Challenges and                                competitive landscape. To this end, we formulated            Nevertheless, we believe in the coffee business as a
Dear Shareholders,                                    reach caused us to experience further business
                                                      expansion in some areas, while in others, it
                                                                                                           We expanded our business, penetrated new
                                                                                                           markets, forged key partnerships, made long-        Accomplishments
                                                                                                                                                                                                                    a strategy for Strauss Israel for the next few years         significant growth driver for the Group. Therefore,
                                                                                                                                                                                                                    and restructured company management. We                      in parallel to contending with the challenges
                                                      resulted in a slower pace and recovery process       term investments and built up the infrastructure                                                         believe that these changes will begin to leave their         and to the perseverance required in CEE, this
The close of 2010 and the start of 2011 mark a
                                                      which necessitated caution in some of the global     required for our global company. We also created    Strauss Israel – A robust, growing                   mark in the near future.                                     year we continued to grow the coffee company
transition period to a new decade. And indeed,
                                                      markets in which we are active.                      new management teams which will enable us to        home base                                                                                                         by improving its professional competencies,
when taking a retrospective view while looking
                                                                                                           operate in the best manner possible across the                                                                                                                        parting ways with Lavazza while augmenting
ahead, the Strauss Group of the next decade will be                                                                                                            The process of formulating the Group’s visionary     Strauss Coffee – Full steam ahead
                                                                                                           globe, while growing stronger as one company                                                                                                                          the investment in the Strauss Coffee brands,
different to the Strauss Group of the past: we will   2010 – A year of reinforcing our foundations,                                                            goals strengthened our recognition of the key        The Strauss coffee company, which originated
                                                                                                           that possesses distinct characteristics.                                                                                                                              formulating a new strategy and appointing Todd
be a fully global company whose areas of activity     of organization and preparation                                                                          role our home base in Israel plays in creating the   in Israel is a microcosm of coffee cultures from             Morgan as the coffee company’s new CEO. 2010
will be tied to the promise and commitment            2010 can be described as a year in which we                                                              infrastructure to drive global growth. Therefore,    all over the world. Within a few years, it became            was highlighted by the acquisition of Le Café
                                                                                                           But our major investment in the Group’s
we have undertaken – to improve the quality of        focused our efforts on developing a long-term                                                            we consider the investment in Strauss Israel and     a global coffee company - the world’s fifth-                 in Russia and the launch of a new corporate
                                                                                                           sustainability and prosperity is evident in the
people’s lives.                                       strategic process, building infrastructure for the                                                       its successes in the past year an advantage for      largest - in roasted and ground coffee, focusing             identity in Brazil, the climax of a decade of organic
                                                                                                           visionary-strategic process. In the past year the
                                                      changes the Group is to undertake in the next                                                            the long term.                                       on providing a personal and cultural response to             expansion through mergers and acquisitions. The
                                                                                                           Group’s senior management embarked on a
The year 2010 found us, like the rest of the          decade, and preparing for the accomplishments        thorough and intensive process to formulate                                                              every consumer.                                              year ended with good business performance in
world’s food companies, at a difficult juncture,                                                                                                               Strauss Israel’s recovery from the economic                                                                       both arenas.
                                                      of our future goals.                                 our visionary goals for the next decade. Our
characterized by the trials of emerging from a                                                                                                                 crisis was relatively fast: the company regained     In the past year the coffee company dealt with
                                                                                                           visionary goals complete and complement the
                                                                                                                                                               its positive momentum in the second half of the      challenges that were far from simple. These were
world economic crisis, increasing competition         In 2010 we strengthened the existing foundations     Strauss vision and values. This unique “Strauss                                                                                                                       Strauss Water – From Israel to China
                                                                                                                                                               year and can sum up 2010 as a year of growth and     mainly in some of the Eastern European markets,
in the industry and rising raw material prices. As    of our different business areas, both in our         Way” distinguishes the company and motivates
                                                                                                                                                               improved profitability. In 2010 we also invested     which are recovering slowly from the economic                Strauss Water is a global firm that delivers
a result of the prevailing conditions, our global     home base in Israel and our other business hubs.     employees and managers throughout the world.
                                                                                                                                                               efforts in adapting Strauss Israel to the growing    crisis as world raw material prices are on the rise.         drinking water solutions. It serves us as a lever


Strauss Group 2010 Annual Report   8                                                                                                                                                                                                                                                                      9   2010 Annual Report Strauss Group
                                                              for growth and expansion, a means for fulfilling
                                                              our promise to improve the quality of people’s
                                                                                                                    manufacture of healthier products, the expansion
                                                                                                                    into a broad variety of multi-cultural foods, and
                                                                                                                                                                            Looking Ahead                                              We will strengthen human diversity and team spirit
                                                                                                                                                                                                                                       among us. We will turn the wealth of perspectives,
                                                              lives, and a strategic opportunity to express         the entrance to the salsa category following the        The greatest assignment we face in the next few            cultures and competencies into power. We will
                                                              the special emphasis on entrepreneurship and          acquisition of CCF.                                     years is to build Strauss as a familiar, favorite global   enable people to express their uniqueness, to
                                                              technology as a growth driver for the Group.                                                                  band that is valued for its promise to improve             innovate and to lead.
                                                                                                                    For us in the Strauss Group, Sabra’s success forms      people’s lives and for the products that fulfill this
                                                              The acquisition of Tami4 has enabled us to            a significant layer in building the platform for the    promise in practice.                                       We will deepen our social responsibility, be
                                                              strengthen our presence and growth in the Israeli     Group’s continued expansion in North America.                                                                      involved partners in the communities in which we
                                                              water market. To this end we also took action in                                                              We will continue on our journey towards global             operate, display leadership and be a catalyst for
                                                              the past year to formulate a corporate identity for                                                                                                                      social and environmental change.
                                                                                                                    Max Brenner – the sweet smell of success                expansion and will strengthen our competitive
                                                              the company.                                                                                                  position in each of the markets in which we are
                                                                                                                    The unique concept of of our Chocolate Bar chain
                                                                                                                                                                            active. We will turn our expansion into a platform
                                                              Strauss Water continues to lay the infrastructure     continues to create a buzz and grow. This year the
                                                                                                                                                                            for building the Strauss brand, and the brand              A Word of Appreciation
                                                              for its global expansion:                             chain opened a new store in the heart of Las Vegas.
                                                                                                                                                                            into a quality seal that will enable us to continue
                                                                                                                    The location is designed to strengthen the Max                                                                     We would like to take this opportunity to thank our
                                                                                                                                                                            offering products that enrich our lives every day.
                                                              In China, Strauss Water established a joint venture   Brenner’s presence in the US and to form another                                                                   dedicated managers, employees and shareholders,
                                                              in 2010 with the technological giant Haier, and       step in realizing the entire Group’s expansion in                                                                  the world over, for their continued to work and
                                                                                                                                                                            In the next year we will take action to implement
                                          One Company,        in the coming year the joint company,
                                                              Haier-Strauss Water, will focus on penetrating the
                                                                                                                    North America.
                                                                                                                                                                            the Group’s road map and the realization of our            support in the Company.
                                                                                                                                                                            strategy and accomplishment of our visionary
                                                              Chinese market and developing the brand.                                                                                                                                 Yours sincerely,
                                                                                                                    Sound Financial Standing                                goal. In the context of this assignment we will
                                                                                                                                                                            work on improving the competitiveness and
                                                              Sabra – A bigger share                                This year of heighted activity and expansion
                                                                                                                                                                            profitability of our mature and developing
                                                                                                                                                                            businesses, and will increase marketing efforts
                                                              In 2010 Sabra was the fastest growing brand in        culminated in annual revenues of NIS 6.85 billion,
                                                                                                                                                                            to grow our market shares in the differen
                                                              the refrigerated dips and spreads category in         up 7.5% over 2009. Our organic growth, excluding
                                                                                                                                                                            categories, regions and businesses.                        Ofra Strauss                Gadi Lesin
                                                              North America. With a 47% market share and            acquisitions and the impact of the volatile
                                                              continued double-digit growth, Sabra has made         exchange rates, reached 3.9%. We ended the                                                                         Chairperson of the          President and
                                                                                                                                                                            Simultaneously, we will apply an entrepreneurial           Board of Directors          Chief Executive Officer
                                                              good on its promise “To share the world with you”     year with an operating profit of NIS 601 million,
                                                                                                                                                                            spirit and creative and innovative thinking to             Strauss Group               Strauss Group
                                                              time after time, meal after meal.                     an increase of 5.4% over 2009. Net profit reached
                                                                                                                                                                            develop new growth drivers for the Group.
                                                                                                                    NIS 258 million, while cash flow from operations
                                        All Over the World.   These promising results can be attributed to
                                                              our vigorous activities in firmly establishing the
                                                                                                                    totaled NIS 501 million. Altogether we ended
                                                                                                                    the year with a healthy cash balance of NIS 795
                                                                                                                                                                            As always, people will remain our top priority - our
                                                                                                                                                                            people and the people for whom, and for whose,
                                                              company and creating competitive advantages:          million. This strong financial standing is the result
                                                                                                                                                                            quality of life we are active.
                                                              the partnership with PepsiCo, with whom we            of our ongoing cash generation, capital raising
                                                              launched a state-of-the-art manufacturing             activities in 2010 and sensible, cost-effective
                                                              site in Virginia, will serve as a platform for the    expense management.
Strauss Group 2010 Annual Report   10                                                                                                                                                                                                                         11    2010 Annual Report Strauss Group
                                                      to Wonders


                                        from Wishes



Strauss Group 2009 Annual Report   12                              13   2009 Annual Report Strauss Group
the StrAuSS GrOuP
the Strauss Group On-going transformation
                                                                                                                                                                                           2010

                                                                                                                                                                        2009                Establishment of
                                                                                                                                                                                            Strauss Water -
                                                                                                                                                                         Inception of       Haier JV in China
                                                                                                                                                       2005-2008         Strauss Water             '
                                                                                                                                                                                            Le Cafe
                                                                                                                                                        International    Tana Industries    acquisition
                                                                                                                                  2002-2004

                                                                                                                                                                                                                     to 2010
                                                                                                                                                        expansion        acquisition        in Russia
                                                                                                                                   The Strauss-Elite    One global
                                                                                                                   2001            merger                                                   California
                                                                                                                                                        company
                                                                                                                                   New operating                                            Creative Foods
                                                                                               1998-2000            New dairy
                                                                                                                                   model for the                                            salsa company
                                                                                                 Assimilation of    in Achiud
                                                                                                                                   Group                                                    acquisition by

            from 1936
                                                                               1997              acquisitions       Passing the
                                                                                                                                                                                            Sabra in North
                                                                                Major            Strategic          baton
                                                     1995-1996                                                                                                                              America
                                                                                acquisitions     partnerships
                                        until 1995    Strategic partnerships    in Israel
                                         Internal
                                         growth




                                                                                                                   The last few years have been an exciting time of growth and change for the Strauss Group ("Strauss",
                                                                                                                   the "Company"). During this period Strauss has become the second largest food and beverage
                                                                                                                   company in Israel and the fifth largest coffee company in the world in terms of green coffee
                                                                                                                   consumption, holding leading positions in Israel, Central and Eastern Europe and Brazil.
Strauss Group 2010 Annual Report   14                                                                                                                                                                           15   2010 Annual Report Strauss Group
From a wholly Israeli company we have evolved            wonders out of basics. We believe that creating        vision of becoming a leading provider of drinking
into an international corporation focusing on            wonders is a privilege. For us it is a treasured and   water solutions. What began three years ago
three core businesses with unique concepts that          creative passion that is always, fundamentally, and    as a start-up venture, in the daring spirit that so
are developing innovative, growth-intensive              essentially, about our love for life.                  aptly characterizes Strauss, is now proudly called
global businesses. From a private, family-owned                                                                 Strauss Water.
enterprise, we have become a publicly listed             The Strauss Group operates 19 manufacturing sites
group with a diverse business structure that is          in 20 countries and employs 13,000 people around       Strauss places significant emphasis on growth
characterized by rapid growth - organic as well          the world and, through its focused organizational      through partnership with major international
as from acquisitions, mergers and a variety of           structure, is constantly satisfying key consumption    corporations, and is partnered with several leading
partnerships. As a result, 2010, which was our
seventh consecutive year of growth, ended with
NIS 6.9 billion in revenues, 46% from international
                                                         trends in the food industry.

                                                         Strauss Israel, serving as the Group's home base,
                                                                                                                multi-nationals including: French-based Danone,
                                                                                                                USA-based PepsiCo, as well as with local partners
                                                                                                                such as the Lima brothers of Santa Clara Coffee
                                                                                                                                                                                 to     the four corners of the Globe
activities. Our operating profit for the year reached    operates under two focused divisions concentrated      Company, the second largest coffee company
NIS 601 million, 8.8% of revenues and our net            on meeting evolving consumer trends through            in Brazil.
income reached NIS 258 million, 3.8% of revenues.        innovation and sustainability. These two divisions,
                                                         Health & Wellness and Fun & Indulgence, serve          Paramount to Strauss is its social responsibility and
A Proud Legacy                                           as the core foundations for long-term growth and       involvement in activities and with organizations
The Strauss story began in the 1930’s in Nahariya,       expansion, locally, as well as globally.               that promote this, including membership in
a little town near the Sea of Galilee, where the first                                                          the UN Global Compact supporting socially and
generation of the Strauss family set up a small          Over the past few years our multi-local company        environmentally responsible policies, as well as the
cowshed and dairy. With a cow, a desire to succeed,      Strauss Coffee, in which TPG Capital holds 25.1%,      4C Organization promoting fair trade in coffee.
powerful values and an abundance of passion the          strengthened its place as a leading coffee company     Strauss Group is traded on the Tel Aviv Stock
founders, Dr. Richard and Hilda Strauss, took the        and has continued to expand in fast-growing            Exchange and is included in the Tel Aviv 25 Index
most basic ingredients and transformed them into         emerging markets such as Central and Eastern           as well as in the Ma'ala Social Responsibility Index,
something surprising, delightful and nutritious.         Europe and Brazil.                                     both under the ticker STRS.
This was done out of a genuine desire to touch
people, to please them, and to enrich their lives.       Strauss North America primarily incorporates
                                                         the activities of the rapidly growing Sabra Dipping
Although Strauss as a global company, has                Company, jointly managed (50:50) with PepsiCo
expanded and evolved, with the third generation          Frito Lay, as well as the activity of Max Brenner's                                                            Israel          Russia        Poland     Aukraine   Macedonia   Belarus     Montenegro   Albania   Kazakhstan   Switzerland   Netherlands
now at the helm it still holds tightly to the legacy     innovative Chocolate Bars.



                                                                                                                                      Home
passed down from its founding families and
remains faithful to the essence of their core vision.
Today the focus at Strauss is still about creating
                                                         Strauss Water, which aims to be a key Group
                                                         growth driver in the next few years, has defined a         from                                                Brazil        Phillippines   Singapore   Romania      USA       Australia    Moldova     England     Serbia      Georgia       Lithuania

Strauss Group 2010 Annual Report   16
                                                         to Results



                              from      Responsibility


Strauss Group 2010 Annual Report   18
                                                     Net Sale                                                      Gross Profit*                                             eBIt*�                        Net Profit*
                                                     NIS Million                                                   NIS Million                                               NIS Million                   NIS Million




                                                                                                                                                                                                                       285
                                                                                                                                                                                                                 274




                                                                                                                                                                                                                              268
                                                                                                                                                     2,588




                                                                                                                                                                                                                                    258
                                                                                       6,855
                                                                               6,373
                                        FINANCIAL




                                                                                                                                                                                                           238
                                                                                                                                             2,371
                                                                       6,246




                                                                                                                                    2,288




                                                                                                                                                                                                     601
                                                                                                                            2,240
                                                               5,961




                                                                                                                                                                                               570
                                                                                                                                                                                         522
                                                                                                                    1,945
                                        hIGhLIGhtS




                                                     5,156




                                                                                                                                                                                   512
                                                                                                                                                                             432
                                                     2006 2007 2008 2009 2010                                      2006 2007 2008 2009 2010                                  2006 2007 2008 2009 2010      2006 2007 2008 2009 2010



                                                     *   pro-forma- net of employees options, hedging transactions, inventory and fixed assets write-off and non recurring
                                                         other income (capital gains) other expenses (capital losses. write offs)


Strauss Group 2009 Annual Report
              2010                 20                                                                                                                                                                                    21   2009 Annual Report Strauss Group
             from Nature




                                                   to Nurture


                                        BuSINeSS
Strauss Group 2009 Annual Report   22
                                        revIeW
                                        to Marvels
from Meadows




Strauss Group 2010 Annual Report   24                25   2010 Annual Report Strauss Group
StrAuSS                                 From mealtime to snack time,                                                         Israel
                                                                                                                             NIS Million



                                        it’s always time for Strauss




                                                                                                                                                                   2,683
                                                                                                                                           2,673

                                                                                                                                                   2,671
ISrAeL




                                                                                                                                                           2,624
                                                                                                                                   2,584
                                        Strauss Israel is Strauss Group’s home base and, by the end of 2010, accounted
                                        for approximately 54% of the Group’s total business turnover. The Company’s
                                        brands in all of its core categories are leaders in the Israeli food market.
                                        Strauss Israel’s activities focus on Health & Wellness, Fun & Indulgence; Coffee
                                        (which is managed by Strauss’s global coffee company), and Water
                                        Purification Appliances. Strauss Israel has created a fine-tuned sales and
                                        distribution system and delivers many of the Israeli consumer’s favorite and
                                        preferred products.
                                                                                                                                  2006 2007 2008 2009 2010

                                        The main Health & Wellness Division products are yoghurts, dairy desserts,
                                        soft cheeses, flavored milk drinks, refrigerated Mediterranean salads, honey
                                        products, olive oil and jams. The main Fun & Indulgence Division products are
                                        sweet snack bars, chocolate tablets, cakes and cookies, biscuits, wafers, and
                                        salty snack foods. In 2010 Strauss Israel’s reported sales (Health & Wellness and
                                        Fun & Indulgence divisions) totaled NIS 2.7 billion, and Strauss’ overall sales in
                                        the Israeli geography totaled NIS 3.7 billion.




Strauss Group 2010 Annual Report   26                                                                                                                                      27   2010 Annual Report Strauss Group
From Plantation




                  to Plenty
StrAuSS                                 Blending the best for
                                        moments of enjoyment
COFFee                                  Over the past few years Strauss Coffee has grown and expanded globally
                                        becoming a leading international coffee company with annual revenues in 2010 of
                                        NIS 3.4 billion. Currently Strauss Coffee is the fifth largest coffee company in
                                        the world in terms of green coffee consumption.

                                        Strauss Coffee’s activities focus on the Roast & Ground (R&G) sector and other
                                        coffee related products (instant coffee, cappuccino, espresso, organic coffee),
                                        and chocolate and cocoa powders, as well as on services in the coffee category,
                                        particularly solutions for Away-From-Home (AFH) coffee consumption.
                                                                                                                           Strauss Coffee
                                                                                                                           NIS Million
                                        Strauss Coffee is active in Israel, Brazil (through a partnership with the Lima
                                        brothers of Santa Clara Coffee Company), Poland, Romania, Serbia, Russia and




                                                                                                                                                      3,349

                                                                                                                                                              3,386
                                                                                                                                              3,243
                                        the Ukraine. The Group’s green coffee procurement center is based in Zug,
                                        Switzerland and it’s green coffee processing plants are located in Brazil.




                                                                                                                                      2,897
                                                                                                                              2,344
                                        In 2008 the leading global private equity investment firm, TPG Capital, entered
                                        Strauss Group as a partner (25.1%) against the allocation of Strauss Coffee
                                        shares. In the next few years the Group plans to accelerate Strauss Coffee’s
                                        growth and expansion process.




                                                                                                                             2006 2007 2008 2009 2010




Strauss Group 2010 Annual Report   30                                                                                                                                 31   2010 Annual Report Strauss Group
from Harvest   to Health




                           33   2010 Annual Report Strauss Group
StrAuSS                                 Irresistibly tasty,
                                        consistently healthy
                                                                                                                                                                  Sabra
                                                                                                                                                                  NIS Million




                                                                                                                                                                                                       593
NOrth AMerICA                           In August 2005 Strauss identified a unique opportunity in the rapidly growing




                                                                                                                                                                                                 430
                                        ethnic and Mediterranean food trend and acquired 51% of Sabra, a small
                                        hummus manufacturer that, at the time, was only catering to the Kosher market.
                                        With Strauss’ extensive experience in chilled dips, this acquisition offered a

SABrA




                                                                                                                                                                                           300
                                        perfect platform to leverage their production, technology and marketing know-




                                                                                                                                                                                254
                                        how and gain entry into the North American market. Strauss redefined Sabra’s




                                                                                                                                                                        182
                                        growth strategy with the aim of enhancing the consumption field in the US for
                                        fresh, ethnic, authentic and healthy dips.

                                                                                                                                                                       2006 2007 2008 2009 2010
                                        In light of Sabra’s success, food giant PepsiCo became a 50% partner in Sabra.
                                        Today the business is managed as a partnership between PepsiCo and Strauss
                                        Group that has helped transform Sabra into the fastest growing and leading
                                        brand in the chilled dips and spreads category in North America. Strauss plans
                                        to leverage Sabra as a platform for continued development in North America,         In 2010, we expanded Sabra’s presence in North America by acquiring the
                                        and to support this growth in 2010 we opened a cutting-edge factory for chilled     refrigerated salsa and dips business of California Creative Foods (“CCF”). This
                                        dips and spreads in Virginia. This new plant is considered to be the largest and    acquisition will enable Sabra to increase its product portfolio by entering the
                                        most advanced facility of its kind in the world and is a model of innovation that   refrigerated salsa category and to further strengthen our leadership in the
                                        includes a variety of new developments in the fresh food industry. This plant       refrigerated dips and spread category, enabling Sabra to continue its rapid
                                        will enable Sabra to significantly increase its production capacity, continue       growth and to win a special place in the hearts of American consumers.
                                        to improve the variety and quality of its products, provide a response to the
                                        increasing demand for those products, and enable the development of a               In 2010, Sabra’s sales (100% JV) totaled approximately NIS 593 million,
                                        broad range of categories and products while continuing to grow the market          increasing 38% compared to last year, with 47% annual market share in the
                                        in which Sabra is active.                                                           refrigerated flavored spread category.




Strauss Group 2010 Annual Report   34                                                                                                                                                 35     2010 Annual Report Strauss Group
                                                           to Treats


                                        from Temptations



Strauss Group 2010 Annual Report   36                                  37   2010 Annual Report Strauss Group
StrAuSS                                 Flavor at its richest,
                                        tempting to every sense
                                                                                                                            Max Brenner
                                                                                                                            NIS Million




NOrth AMerICA




                                                                                                                                                          109
                                                                                                                                                    108
                                        Max Brenner presented the Chocolate Bar to the world as an innovative retail




                                                                                                                                          96

                                                                                                                                               95
                                        concept characterized by a unique chocolate culture that strengthens the social
                                        experience and fun of eating and drinking chocolate. Strauss has invested
                                        enormous effort into developing the prestigious Max Brenner chocolate brand

MAx BreNNer




                                                                                                                                  58
                                        and over the past few years, Max Brenner Chocolate by the Bald Man has proven
                                        itself as a global indulgence concept in various regions around the world.

                                        In 2010 we opened a new Max Brenner branch in Las Vegas and today 35 Max
                                        Brenner Chocolate Bars operate around the world: 6 in Israel, 23 in Australia,
                                        3 in the USA, 2 in the Philippines and 1 in Singapore. North America has been            2006 2007 2008 2009 2010

                                        identified as having significant business potential for this unique brand, and in
                                        2011 the Group plans to open an additional Chocolate Bar in Boston. In 2010
                                        Max Brenner’s sales totaled NIS 109 million.




Strauss Group 2010 Annual Report   38                                                                                                                       39   2010 Annual Report Strauss Group
                                        from Potential




                                                         to Progress



Strauss Group 2010 Annual Report   40                                  41   2010 Annual Report Strauss Group
                                        Clearly the purest essence of nature
                                        In 2009 we unveiled Strauss Water, a unique concept that, by purifying tap
                                        drinking water, will improve the lives of consumers worldwide. At the same time
                                        we acquired Tana Industries, the company behind the Tami 4 brand of Water
                                        Bars that, by replacing bottled water with clean, filtered tap water, created a
                                        drinking-water revolution in Israel.

                                        In 2010 we announced another milestone in the Group’s global expansion,
                                        launching Strauss Water’s international activity into China and entering the
                                        Group into the most highly populated country in the world where we look
                                        forward to providing a solution to the genuine need for healthy and high quality
                                        drinking water there.

                                        Strauss Group and the Chinese home appliance giant Haier Group, signed a
                                        partnership agreement to establish a joint venture in China for drinking water                                                            WAt e r
                                        solutions. This venture will be owned jointly by Strauss Water 50% and Haier
                                        Consumer Goods 50%.

                                        Strauss Water, which is poised to be a key growth driver for the Group in the
                                        next few years, has defined a vision of becoming a leading provider of drinking
                                        water solutions worldwide. What began three years ago as a start-up venture



StrAuSS
                                        is now proudly called Strauss Water, reflecting the entrepreneurial spirit          and around the world. Strauss Water’s activities not only show the Group’s
                                        that is Strauss.                                                                    commitment to providing consumers worldwide with safe, quality drinking
                                                                                                                            water but also highlight the Group’s commitment to social responsibility and
                                        This milestone is Strauss Water’s first step on the way to realizing its place as   environmental accountability




WAter
                                        a global water solutions company specializing in world-class drinking water
                                        purification, filtering, heating and cooling systems for both in-home and away-     In 2010 Strauss Water sales demonstrated growth with annual sales
                                        from-home markets, providing the foundation of our global activity, in China        totaling NIS 382 million.


Strauss Group 2010 Annual Report   42                                                                                                                                        43   2010 Annual Report Strauss Group
                                        to Responsiveness


        from Responsibility

Strauss Group 2010 Annual Report   44               45   2010 Annual Report Strauss Group
           from Synergy                                                                                                      SOCIAL
                                                                                                                             reSPONSIBILIty
                                                            Running a successful, profitable, growing business        operate, in every contact we have with society and        revolutionary water filtering and purification
                                                            that encompasses social, environmental, moral and         the environment. To nurture our people, partners,         technologies, we are taking action in order to help
                                                            value-based considerations on the path to achieving       consumers, customers, investors, suppliers and all        make healthy and safe drinking water accessible
                                                            its business objectives – that is the Strauss Way.        other stakeholders who are our raison d’etre and the      to populations that do not have access to this
                                                                                                                      secret of our success.”                                   elementary and basic resource. The new Sabra
                                                            Acting with responsibility, caring and humanity                                                                     plant, the most advanced facility of its kind in the
                                                            in all our activities, internally and externally, with    We are proud of our long legacy of compassion and         world, was constructed from its foundations up as a
                                                            all stakeholders: owners, partners, suppliers,            generosity, and have succeeded in transforming            green, eco-friendly factory that complies with the US
                                                            consumers, customers and employees - that is what         this legacy into Strauss Group’s way of thinking          Environmental Protection Agency’s most stringent
                                                            dictates our actions. The path of social responsibility   that, for our ever-growing organization, transcends       regulations. As a responsible global food company
                                                            has brought us to this point, and will be the secret of   local boundaries. For the Strauss Group social and        we work to constantly improve the quality and
                                                            our future successes.                                     environmental responsibility is not just another          nutritional value of our products, and to encourage
                                                                                                                      issue to deal with or an appendix at the end of our       and promote a healthy lifestyle.
                                                            We view corporate responsibility as an integral part      business day, rather it is at the very root and core of
                                                            of the Group’s business strategy and vision, the goal     our organization. Our business dealings are guided        We attribute great importance to our role in setting
                                                            of which is to create long-term sustainability for our    and directed by our innate sense of responsibility        new norms for, and high standards of awareness
                                                            company and to continue our heritage.                     towards people and towards the environment.               and social and environmental responsibility,
                                                                                                                                                                                both in Israel and in the many countries in which
                                                            Our CSR Mission Statement is “To be deeply                The Group’s decision to enter the water sector, in a      we operate. As more and more companies


                                        to Sustainability
                                                            connected to society through a bond of responsibility     time of dwindling natural resources and a shortage        integrate the issue of social and environmental
                                                            and commitment. To demonstrate caring and                 of proper drinking water throughout the world,            responsibility into their operations, we view this
                                                            humanity via our every activity, wherever we              is a direct reflection of our vision. By developing       as an important achievement.
Strauss Group 2010 Annual Report   46                                                                                                                                                                   47   2009 Annual Report Strauss Group
                                                                                                                           COrPOrAte
                                                                                                                           DIreCtOry
COrPOrAte                                                                                                                  Board of Directors
                                                                                                                           Ofra Strauss, Chairperson
                                                                                                                           Michael Strauss
                                                                                                                                                       Management team
                                                                                                                                                       Gadi Lesin
                                                                                                                                                       Shahar Florentz
                                                                                                                                                                          President & CEO
                                                                                                                                                                          EVP & CFO
                                                                                                                                                                                                         external Auditors
                                                                                                                                                                                                         KPMG Somekh Chaikin, 17 Ha’arbaa Street, Tel Aviv, Israel




GOverNANCe
                                                                                                                           Dalia Lev                   Michael Avner      EVP, CLO & Company Secretary   Share trading Information
                                                                                                                           Ronit Haimovitch            Nurit Tal Shamir   EVP & CHRO                     Strauss shares are traded on the Tel Aviv Stock Exchange
                                                                                                                           Ran Madyan                  Tomer Harpaz       EVP, Business Development      under the ticker symbol STRS.
                                                                                                                           Arie Ovadia                                    and Strategy
                                                                                                                           David Mosevics              Giyora Bar Dea     CEO Strauss North America      General Information requests
                                                                                                                           Michael Anghel              Zion Balas         CEO Strauss Israel             Strauss Group Headquarters:�
     At Strauss Group, we believe good governance should        including 4 independent directors, 2 of whom are                                       Todd Morgan        CEO Strauss Coffee             49 Hasivim St., Petach Tikva, 49517 Israel
                                                                                                                           Meir Shanie
     guide every aspect of our business. Our corporate          external directors (according to the requirements of                                                                                     Tel: + 972 3 675 2111
                                                                                                                           Dafna Schwartz              Rami Ronen         CEO Strauss Water
     governance policy ensures we work according to all         Israeli law), and no executive directors of the company.
                                                                                                                           Akiva Mozes
     of the laws and regulations of the countries where we      Ms. Ofra Strauss, the Chairperson of our Board, is                                                                                       Investor Contact
     operate and in compliance with sound management            a non-executive officer of the company. Our Board                                                                                        Yaffa Cohen-Ifrah, Director of Investor Relations
     codes, both in Israel and abroad. Strauss Group conducts   of Directors has six Board Committees: Audit                                                                                             E-mail: yaffa.cohen-ifrah@strauss-group.com
     business according to the highest standards, based on      Committee, Finance Committee, Human Resources              www.strauss-group.com                                                         Tel: + 972 3 675 2545
     principles such as commitment to honesty, transparency,    and Remuneration Committee, Financial Statements
     public disclosure and accountability for our actions       Committee, CR Committee and Investments,
     with all our stakeholders.                                 Acquisitions and Mergers Committee.

     Strauss Group’s business strategy and affairs are          For the Strauss Group strong ethical principles are the
     overseen by our Board of Directors which is comprised      foundation for good corporate governance.                                                                                                This report is printed on ecological paper.
     of 11 members with various backgrounds and expertise,                                                                                                                                               Concept & design: www.portnov-mishan.com

				
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