Strauss-Elite is investing $5 million in market penetration. Israel's salad food category includes processed, packaged salads such as hummus.
Strauss-Elite Ltd. (TASE:STEL) is renewing its assault on Israel’s salad market, this time be preempting market leader Sabra Salads Food Industries Ltd. Strauss is launching a diet salad line whose taste is unaffected by its low fat level. Strauss’s Salad Lite line has 5% fat. The company is investing $5 million in market penetration.
Israel's salad food category includes prepared, processed and packaged salads such as hummus salads, eggplant salads, etc.
Strauss-Elite CEO Giora Bar-Dea said the company planned to produce a full range of diet products.
In July 2004, Strauss launched a campaign to reposition its salads and upgrade their taste, in order to win back market share lost to Osem Investments Ltd. (TASE:OSEM) subsidiary Sabra Salads, which had become the leader in the NIS 450 million market.
Sabra Salads has a 42% market share, mainly thanks to its unchallenged domination with a variety of hummus salads with toppings, such as pine nuts or chickpeas. Strauss lacks this variety. Hummus constitutes half of Israel’s salad market, but the market’s growth engines are other types of salads.