Strauss Group Sustainability Report

DRIVEN BY

Responsibility

2013

Sustainability Report 2013

Message from our leadership

4Strauss at a glance

6Sustainability Strategy 2014- 2020•Ourpriority

sustainabilityissues

12Improving lives•Healthylifestyles

•Producttransparency

•Engagingouremployees

•Diversityineverythingwedo

•Ethicalsupplychain

•Reducingresource

consumptionandwaste

24Engaging stakeholders

66About our reporting•GRIG4contentindex

•UNGlobalCompact

80

Contents

| 54 |

"Improvinglives"isthethemethatruns

throughthisSustainabilityReportaswe

continuetobeDrivenbyResponsibilityto

makeapositivecontributiontopeople,

societyandtheplanet.Thisisourseventh

annualSustainabilityReportanditrepresents

ourcontinuingcommitmenttodo

businessthatcreateseconomic,socialand

environmentalvalueforallthosewereach.

"Improvinglives"referstothewaywecreate

morefood,nutritionandbeverageoptions

forconsumersandsupportconsumersthat

wanttoleadhealthylifestyles.Webelievethat

sustainablebusinessgrowth,rootedinour

responsibleapproachtobusiness,willhelpus

doevenmoreinthefuturetocontributeto

improvinglives.

2013wasalandmarkyearinoursustainability

journey,aswecompletedourglobal

sustainabilitystrategythatwillguideand

defineouractionsthrough2020.Weachieved

thisaftermanylongmonthsofanalysis,

consultation,dialogueanddebate.The

processwasilluminatingandengaging,and

theoutcomeisanintegratedframework

thatweareconfidentwillhelpuscontinueto

deliversustainablevalue.ForStraussGroup,

composedoffivedifferentcompanies,

eachwithauniquebusinesscharacter,this

overarchingstrategicapproachwillhelpus

workacrosscompanyboundariestoaddress

thebroaderneedsofstakeholders,create

synergies,leverageourstrengths,learnfrom

oneanotherandmostimportantly,improve

ourcapabilitytodelivervalueforall.

Ourbusinesscontextduringthepastyear

presentednewopportunitiesandenabledus

tomaintainStraussGroupglobalsalesatmore

than$2.35billion,deliveringmorethan$220

millioninoperatingprofitaswecontinueour

operationsin24countrieswithaglobalteam

ofmorethan13,500employees.Wewere

able,in2013,togrowourbusinessacross

allproductcategories,indicatingapositive

responsefromourconsumers,especiallyour

coffeeconsumersinBrazilwithourpartnersat

TrêsCoraçõesandtheexpandedofferingsof

ourSabradipsandspreadsintheU.S.Weare

excitedthatourU.S.consumerslovethetaste

ofhummus,withSabracontinuingtoleadthe

marketwith64percentshare.

Duringtheyear,weconsolidatedourposition

intheRussiancoffeemarketthrough

acquisitionofremainingsharesofLeCafé

roastedandgroundcoffeeoperations,andwe

inauguratedourSabra"CenterofExcellence"

researchanddevelopmentcenterintheU.S.,

thefirstofitskindintheindustryforchilled

dipsandspreads.MaxBrennercontinuedto

expand,openingmoresignatureChocolate

Barsacrossdifferentcontinents,bringingnew

chocolateexperiencesthroughmorethan

50ChocolateBarsinsixcountries.InIsrael,

StraussWaterlaunchedtheinnovativeTami4

BubbleBar,whichdispensescarbonatedwater

inadditiontohotandcoldoptions,bringing

consumersatechnologicalbreakthroughin

theWaterBarcategoryforahealthy,funand

environmentallypositivedrinkingexperience.

StraussIsraelcontinuedtoinnovatewithmore

than228newproductsandproductvariants

reachingthemarketacrossallcategories.

In2013,asinpreviousyears,wecontinued

tofacethechallengesofdeliveringvaluein

demandingeconomiccircumstances.These

includehighenergyprices,increasingraw

materialpricesandpackagingcosts,political,

socialandeconomicinstabilityinEastern

Europewhereweenjoysignificantmarket

presence,moredemandingregulationin

areasoffoodsafetyandenvironmental

protectionandincreasedfrequencyof

weatherextremescausingdisruptionto

cropavailabilityanddisastersaffecting

manycommunitiesaroundtheworld.We

havenavigatedthesechallenges,Drivenby

Responsibility,strivingtoimprovevalue-

addingchoicesforStraussGroupandforour

consumersandstakeholders.

Amongthesechoiceshasbeenour

undertakingtofocusonthreeareaswhere

wehopetoachieveindustryleadingpositions

aswegoforwardtoward2020:advancing

healthylifestylesforourconsumers,leading

ouremployeestogreaterhealthandwellness

andachievinggreatersupplierdiversityin

oursupplychainoperationsaroundthe

world.Webelievewecanmakeasustainable

differencethroughthesekeyaspirations,

whilecontinuingtoimproveoursustainability

performanceinotherareas.Further,this

year,webecameearlyadoptersofthe

GlobalReportingInitiativeG4sustainability

reportingframework,aligningourreporting

withcurrentleadingglobalpracticein

transparencyandaccountability.

Messagefrom our leadershipDear Stakeholders,

Ofra Strauss Gadi Lessin Michael Avner

Chairperson PresidentandCEO EVPandGeneralCounsel

Weareappreciativeofthetirelessefforts

ofouremployeesaroundtheworldwho

helpStraussGroupcreatesustainablevalue,

andwethankourconsumers,business

partners,suppliersandallotherstakeholders

foranotheryearoftrust,dialogueand

partnership.

Wehopeyouwillfindinterestinthisreport

andasalways,wewelcomeyourfeedback.

| 76 |

StraussGroupisafoodandbeverage

company,dedicatedtoenrichingand

improvingpeople'slivesthroughourfresh,

delicious,nutritious,andinnovativeproducts.

Ourportfoliooffivecompaniesprovidesa

responsetotwoleadingtrendsinfoodand

beverageconsumption:Health&Wellness,

andFun&Indulgence.Weareheadquartered

inIsrael,activein24countries,and,in2013,

StraussGroupgenerated$2.35billionin

consolidatedsales.

Weemployover13,500peopleandindirectly

provideemploymentandeconomic

opportunityforcontractedemployees,

Straussat

a glance

franchisees,independentdistributorsand

thousandsofbusinesspartnersandsuppliers

aroundtheworld.StraussGroupistradedon

theTelAviv25Index,whichincludesIsrael's

largestpubliccompanies,andearnsanAA+

creditratingfromMa'alot,aStandardand

Poor'saffiliate.

Ourbrandsincludemarketleadersinseveral

countriesandcategoriesandreachmillionsof

consumerseachday.

AtStraussGroup,wehavealwaysplaced

greatvalueinpartnerships,believingthem

tobeasustainableplatformforexpanding

ourofferingforthebenefitofourconsumers

aroundtheworld.Wepartnerwithrespected,

leading-edgemultinationalcorporations

suchasDanone,PepsiCo,Haier,Virginand

TPG,andwithlocalleadingplayerssuchas

SaoMiguel,YotvataandYadMordechai,to

deliverquality,innovativeproductswhich

offerhealthychoicesandcontributeto

sustainablelifestyles.

Strauss global presence

Our brands

Europe, and the rest of the world

Israel51%

Brazil21%

7%U.S.

21%

Strauss Group sales by region, 2013

RussiaGermanyPolandRomaniaSerbia

SwitzerlandThe NetherlandsUKUkraine

U.S. ChinaPhilippinesSingapore

AustraliaIsrael BrazilCanada Mexico

| 98 |

WepartnerwithDanonetobring

ourconsumersinIsraelfreshdairy

productswithafocusonhealth

andnutrition,andwemarketglobal

brandsfromtheDanonerange,such

asActiviaandActimel.

WepartnerwithPepsiCotodeliverSabra

hummusandchilleddipsandspreadsin

theU.S.andCanada,andtobringFrito-

Lay'ssaltysnackstoconsumersinIsrael.

OurjointventurewithPepsiCounderthe

ObelabrandbringshummustoMexican

andAustralianconsumers.

WepartnerwithSãoMiguelHoldingin

TresCoracoes(3C),a50/50JVinBrazilfor

productionanddistributionofroastand

groundcoffeeandotherproducts.

WepartnerwithHaiertobringpurified

drinkingwatersolutionstocustomers

inChina,usingourbreakthrough

purificationtechnology.

WepartnerwithVirginGrouptobring

StraussWater'spurificationsolutions

anddrinkingwaterappliancesto

customersintheUK.

Wepartnerwiththeprivateequity

fund,TPGCapital,toenhanceand

expandourpresenceinthecoffee

category.

International partnerships

Strauss CoffeeMax Brenner Strauss Water

1% 16% 26% 51%6%PepsiCo-Strauss Fresh Dips & Spreads

Strauss Israel

Strauss Group sales by company, 2013

$574$34 $347

$1.14$139

Develops,

manufactures,sells,

marketsanddistributes

brandedfoodand

beverageproducts

inIsraelintwomain

categories:"Health&

Wellness"and"Fun&

Indulgence".Weare

thesecondlargestfood

companyinIsrael.Our

brandsareleadersinall

ourcorecategories.

Develops,manufactures,

sells,marketsand

distributesdipsand

spreadsthroughour

Sabrabrandinthe

U.S.andCanada,and

throughourObela

brandinMexicoand

Australia.Sabraisthe

fastest-growingchilled

dipsandspreadsbrand

intheU.S.In2013,the

Obelahummusbrand

waslaunchedinthe

threeleadingchainsin

Australia.

Develops,manufactures,

sells,marketsand

distributesbrandedcoffee

products,chocolatedrinks

andotherdrinkpowders.

Wearethefifth-largest

coffeecompanyintheworld

intermsofgreencoffee

procurement.InBrazil,the

JVTresCoracoesprocesses

andsellscoffeeandother

productstothelocalmarket

andexportsgreencoffeeto

customersabroad.

Develops,assembles,

marketsandservices

filtrationand

purificationappliances

fordrinkingwater,

usingcutting-edge

technologydeveloped

inIsrael,offering

convenient,cleanand

tastydrinkingwaterto

Israeli,UKandChinese

consumers.

Develops,manufactures

andsellspremium

chocolateproducts

undertheMax

Brennerbrandinover

50"ChocolateBars",

(includingfranchisees)

in6countries.Max

BrennerChocolate

Barsenhancethesocial

experienceofgoingout

andenjoyingthepure

funofdrinkingand

eatingchocolate.

salesin2013million

salesin2013million

salesin2013million

salesin2013million

salesin2013billion

Note:FiguresforSabraandObelareflectStrauss50%share.StraussCoffeeandGreenCoffeefiguresincludeStrauss50%sharein3C.FiguresforF&IincludeStrauss50%shareinthesaltysnacksbusiness.StraussWaterincludesStraussshareinStraussWaterUKandChina.InBrazilweoperatethroughTresCoracoes,a50%/50%JVwithSaoMiguelHoldingeInvestimentos.

| 1110 |

ThecombinationofStraussGroup'sunique

visionandourabilitytotakethemost

basicofrawmaterialsandturntheminto

wondersisinstilledinthecompany:it'sboth

abusinessconceptandadriverofproduct

development.Ourvisioninspiresustoenrich

thequalityofpeople'slivesallovertheworld

bydevelopingbusinesses,specialproducts

andinnovativesolutions.

Strauss valuesCaring & DaringCaringmeanspayingcloseattentiontoour

consumers,customers,employees,partners

andthecommunitiesweoperatein.Daring

istheabilitytoactbravely,takingrisksto

advancesignificantchange.

Passion & ResponsibilityOurpassionisthejoyofcreation,ourgenuine

desireforfood,thedelightofgiving,our

needtonourishothers.Takingresponsibility

makesusdedicatedtoadvancingourvision,

reachingourconsumersandsocietyasa

whole.Weactwithresponsibilityandpassion

foreverythingwedo.

TeamWecreatewinningteamswhereeveryplayeris

akeyplayer.Wetreatourteammemberswith

trustandmutualrespect.Beyondourown

employees,weadvancepartnershipsasaway

toincreasethescopeandscaleofouractivity

andcreategreatervalueforsociety.

Our economic contributionThedirecteconomicvaluewegenerate

throughsalesofourproductsis

distributedamongourstakeholdersand

contributestotheirprosperity.Beyondthis

directcontribution,ourbusinessactivities

benefitmanythousandsoffamilies

andtheirdependentsin24countries,

stimulateeconomicactivitythroughour

supplychainthroughmorethan17,000

suppliersandbusinesspartners,and

supportcommunitydevelopmentand

socialprosperity.

Our vision and valuesStrauss vision: Creating wonders out of basics Note:FinancialfiguresinNISwereconvertedto$attherateof3.46.Thistableisforrepresentativepurposesonlyanddetailsmaydifferfromourpublishedannualfinancial

accounts.Inthecaseofanydifference,ourauditedfinancialaccountspublishedfor2013willprevail.Also,thischartrepresentsthedirecteconomicvalueoftherevenuegeneratedbycompanies100%ownedandcontrolledbyStraussGroupandmaythereforedifferfromconsolidatedfinancialfiguresreported.

$1,075.91$338.98

$1,614.68

$1,633.76

$93.53$68.25$34.61

$19.08

$3.41

Direct economic value generated (revenues, interest on assets and investments)

million

million

million

Total economic value distributed

Economic value retained

million

Operating costs

million

Employee wages and benefits

million

Payments to providers of capital

million

Payments to shareholders

million

Payments to governments

million

Community investments

Economic value distributed

Sustainability Strategy

2014-2020

| 1514 |

Asaninternationalgroupwithfiveoperating

companiesandarelativelyflexiblestructure,

allowingfordifferentpartnershipholdingsand

interactions,developingagroup-widestrategy

wasnevergoingtobeaneasytask,andwas

neverourfirstpriority.Overthepastyears,

wehavebeenadvancingoursustainability

journey,primarilyonacompany-by–company

basis,usingourcorporatevisionandvalues

andcodeofethicalconductasguides,without

prescribingspecificobjectives,goalsortargets.

Eachcompanydevelopeditsownplans,

andourcorporatesustainabilityleadership

atgroupleveldrovecommunications,data

collection,reporting,knowledgesharing

betweencompaniesandcommonareasof

issuemanagement.CorporateResponsibility

trusteesineachpartofthebusinesshelped

advanceprogramsandinitiatives.

However,inthepastfewyears,aswehave

developedgreaterinsight,andasourglobal

footprinthasgrownsignificantly,wefeltwe

neededamorerobuststructuretoleverage

ourstrengths,creategreatersynergiesand

efficiencies,andpresentaconsistentvoice

sothatourstakeholderscanunderstand

whatwestandforandhowweaffecttheir

lives.Thecompellingconclusionwasto

drawupalong-termstrategicframework

whichwouldpulltogetheralltheelements

ofoursustainabilitypracticeanddefine

Our new stakeholder-driven Sustainability Strategy 2020 has two main types of building blocks: degrees of impact and levels of performance.

Degreesofimpactreflecttheprogression

ofourimpactsondifferentstakeholder

groups,andthedegreetowhichwearein

adirectpositiontocreatevalueandhavea

positiveinfluence.Thisstartswiththemost

directrelationshipwehavewithourown

employees–colleagues–throughwhomwe

areabletoreachallourotherstakeholder

groups.Relativetootherstakeholdergroups,

ourcolleaguesareasmallnumber,buttheir

impactonotherstakeholdersiscritical.

Developing our strategy Three degrees of impact –three levels of performance

Three degrees of impact

apathforwardforStraussGroup,with

eachcompanywithinthegroupmakinga

contributionalignedwithitsuniquebusiness

lineandspecificrisksandopportunities.

Inordertodothis,weengagedourGroup

ManagementTeamandtheExecutive

ManagementTeamsofeachcompanyinseveral

roundsofmeetingsanddiscussions,considering

globalandlocalsocialandenvironmental

trends,stakeholderfeedbackandaspirations

andbusinessobjectivesacrossourcompanies.

Thisprocesstookalmostafullyear,andbyearly

2014,wehadagreedonaframeworkthatwill

willtakeusallforwardto2020,using2012as

themainbaseline.

CONSUMERS

COLLEAGUES

CITIZENSHIP

Meet | Exceed | Lead

Three levels of performance

16 | | 17

Our Sustainability Strategy 2020 is designed to help us improve our impacts on all stakeholder groups with the goal of improving people's lives.

ColleaguesOur first degree of impact Weseektomakeapositivedifference

inthelivesofouremployees,sothat

theywillbeempoweredtocontribute

tooursuccess.Wedothisbycreating

aninclusiveworkplace,investingin

personalandprofessionaldevelopment,

healthandwellbeingandensuringa

vibrantdialoguewithinthecompany.We

believethatourinvestmentinproviding

anempowering,values-basedworkplace

willtranslateintoimprovedsecondand

thirddegreeimpacts–thewayemployees

supportconsumersandcustomersand

ouroverallcitizenshipobjectives.

ConsumersOur second degree of impact Weseektomakeapositivedifferencein

thelivesofourconsumersandhelpcreate

ahealthier,moresustainablesociety.We

dothisthroughdeliveringnewandmore

nutritiousfoodproducts,providingdiverse

foodchoicesandengagingconsumersin

greaternutritionalawareness.Ourgoals

inthisareaincludeefficiencyinoursupply

chain,productqualityandavailability,and

marketingandconsumeroutreachplatforms

toenableconsumerstomakeinformedand

healthychoices.

CitizenshipOur third degree of impact Asaresponsiblecorporatecitizen,we

seektocreatevalueforsocietyandthe

environmentinordertoimprovepeople’s

livesandadvancehealthylifestyles.We

dothisthroughcommunityinvestment,

environmentalstewardshipandmaintaining

anefficientandethicalsupplychain.

Ourgoalsinthecitizenshipareainclude

ethicalandefficientsupplychainpractices,

efficientresourcemanagementinour

ownoperations,andinvestmentinthe

communitiesweserve.

Meet performance expectationsThisperformancelevelrequiresusto

deliverconsistentlyonaselectedrangeof

basicsustainabilityobjectives,including

governance,riskmanagement,ethicsand

compliancewithlawsandregulations.This

isnotnew.Wehavealwaysdonethis.Butin

consideringourstrategicobjectives,wefelt

itwasimportanttoensurethatmeetingthe

minimumstandardsofexpectedperformance

acrossallaspectsofsustainabilitypractice,

includingcompliance,willnotbetakenfor

grantedandloserigoraswestrivetodomore.

Exceed performance expectationsThisperformancelevelencouragesusto

exceedpriorperformanceinkeyareasthat

arerelevanttoabroadrangeofstakeholders.

Forthefirsttime,weareestablishing

group-widetargetsinkeyareasofimpact

forouremployees,consumersandother

stakeholders.Inthisway,weaspiretoexceed

ourownpriorexpectationsanddomorethan

wehaveachievedinthepast.

Lead performance expectationsInthreefocusedsustainabilitypriorityareas,weaspiretoachieveleading

performanceinlinewiththebestthatcanbeexpectedofaninternational

companyinoursector.Thethreeareasoffocusinour2020strategyare:

consumerwellbeing,employeewellnessandsupplierdiversity.

In2014,wearefinalizingwaystoprogressourstrategicobjectives,establishing

group-widedefinitions,methodologiesandinfrastructureformanaging,

monitoringandmeasuringourprogress.Insomecases,newbaselinesneedto

beestablished.Inothers,newtoolsandwaysofworkingmustbeagreed.Wewill

reportonourprogressinfuturesustainabilityreports.

COMMUNITY GROUPS

INDUSTRY ASSOCIATIONS

ENVIRONMENTAL GROUPS

SHAREOWNERSAND INVESTORS

SUPPLIERSPARTNERS REGULATORS

CITIZENSHIP

CONSUMERS

COLLEAGUES

Three degrees of impact Three levels of performance

| 1918 |

Advancing healthy lifestyles Product transparency and

responsible marketing

Reducing resource consumption and waste

Context Improve quality of life Informed consumer choices Preserve the planet

Focus •Makingfoodhealthier

•Addinghealthtofoodanddrink

•Raisinghealthylifestyleawareness

•Investinginnutritionalresearch

•Clearproductlabelingand

nutritionalinformationfor

consumers

•Customersatisfactionand

service

•Responsiblemarketing

communications

•Technologyandinnovation

•Operationalexcellence

•Reduceenergy,emissionsandwater

consumption

•Reducewasteandincreaserecycling

•Engagingemployeesinenvironmental

stewardship

Strategic

Goals

•Improveconsumerwellbeing

throughincreasedsalesofproducts

withahealthylifestyleclaimby

15%by2020.

•Engageconsumersinhealthy

lifestyleactivitiesthrougheach

StraussGroupcompany,reaching10

millionconsumersby2020.

•Engageinaglobalstrategicflagship

socialpartnership,withamulti-year

commitmenttoimprovehealthy

lifestylepractices.

•Meetallregulatoryrequirements

inallmarkets.

•Continuouslyimproveour

accessibilityandservicelevelfor

customersandconsumers.

•Operationalizeatleastthreesignificant

innovativeproducttechnologiesthatimprove

sustainableandhealthylifestylechoicesby2020.

•Reduceconsumptionofenergy,waterand

packagingmaterialsby15%pertonofproduct

byend2020.

•Reducegreenhousegasemissionspertonof

productby15%byend2020(2012baseline).

•Increase%ofrecycledwastefromtotalwasteby

15%by2020.

G4 Aspects •Localcommunities

•Healthyandaffordablefood

•Customerhealthandsafety

•Indirecteconomicimpacts

•Productandservicelabeling

•Marketingcommunications

•Materials

•Energy

•Water

•Emissions

•Effluentsandwaste

•Productsandservices

Our prioritysustainability issues

Ethical supply chain Diversity in everything we do Engaging our employees

Context Manage social and

environmental risk

Innovation and opportunity Align our organization to meet

sustainability goals

Focus •Sourcingofsustainableproducts

•Suppliercommitmentto

sustainability

•Equalopportunityinemployment

•Supplierdiversityinprocurementpractices

•Advancingwomeninthecommunity

•Productdiversity

•Employeeengagement

•Leadershipanddevelopment

•Health,safetyandwellbeing

•Employeebenefitsandcompensation

Strategic

Goals

•Increasesustainablesourcing

oftop5globalfoodingredients

by15%byend2020(2012

baseline).

• Diversesupplierspend(focusedonwomen-

ownedbusinesses)toreachatleast10%of

totalpurchasingspendby2020.

•Achievearateof50%ofglobal

managementpositionsheldbywomenby

end2020.

•Offerproductvariantstomeetspecific

healthneeds(obesity,diabetes,celiac,

heartdisease)inourtop10selling

brandsby2020.

•Improveemployeewellnessbyreducing

riskinthreeareas–cardio(fitness,weight),

respiratory(smoking)andprevention(voluntary

checkups),asmeasuredonahealth-riskindex

using2015asabaseline.

•Maintainemployeeengagementabove80%.

•Reduceworkinjuryratetonomorethan3

injuriesper100employeesby2020.

•Reducelostdaysduetoinjuriestonomore

than40lostdaysper100employeesby2020.

G4

Aspects

•Procurementpractices •Diversityandequalopportunity

•Equalremunerationforwomenandmen

•Localcommunities

•Procurementpractices

•Employment

•Occupationalhealthandsafety

•Trainingandeducation

Followinganinitialreviewandidentificationof

ourprioritysustainabilityissuesinpreparation

forour2012SustainabilityReport,wespent

mostof2013indialogue,bothinternallyand

externally,tofurtherrefineourunderstanding

ofwhatmattersmosttoourbusinessandto

ourstakeholders,anddevelopamorefocused

setofcoreissuesandusethosetocreatea

longtermgroup-widesustainabilitystrategy.

Inadditiontotheextensiveinteractionswe

maintainedwithouremployeesandwith

ourcustomersdescribedintheEngaging

Stakeholderssectionofthisreport,we

conductedaRoundTablediscussionwith

expertsindifferentissuesrelatingtoour

business,andalsoareviewwithaglobal

thought-leaderinsustainability.

20 | | 21

ExpertRound TableOurstakeholderRoundTable,organized

tocoincidewithourpreparationofthis

SustainabilityReport,wasstructured

aroundthecoresustainabilityissue

andopportunity:"PromotingHealthy

Lifestyles".Participantsincluded

seventeenrepresentativesfrom

theMinistryofHealth,healthcare

professionals,healthassociations,

socialandenvironmentalassociations

andthebusinesssector,indialogue

witheightStraussGroupmanagers,

includingmembersofoursenior

executiveteam.Theobjectiveofthe

meetingwastogaininsightsfrom

eachparticipantonthetrendsand

developmentsaffectingmatters

relatingtohealthylifestylesandto

hearfeedbackandsuggestionsabout

StraussIsrael'sperformanceinthisarea.

Collaboration"TheMinistryofHealthworkstoadvance

regulationandincreaseawareness

forhealthydietandlifestyles.We

encourageandwelcomecollaboration

withthebusinesssectortoadvance

theseobjectives."

Ruth Weinstein

Director,DepartmentofHealth

Promotion,IsraelMinistryofHealth

Food for all"Healthyfoodoptionsaregenerally

outofreachforweaksocio-economic

groups.It'simportanttomakehealthy

foodoptionsaccessiblethrough

educationandraisingawareness

oftheimportanceofhealthyfood

choices,whilealsomakinghealthy

foodlessexpensive."

Sari Nuriel

CEO,Zionism2000

An important discussion"Thiswasanimportantopportunitytohearatfirsthandtheopinions

andguidanceofleadingexpertsinIsrael.Ourconsumersare

becomingmoreawareandmoreinvolvedwiththewayweaffect

theirlivesthroughboththeproductsweprovideandtheactivities

weengageinasafoodcompany.Wehaveobservedthischange

inconsumerattitudesandexpectthe"empoweredconsumer"to

haveagreatervoiceinthewaywedobusiness.Thisdiscussionwas

extremelyvaluableinhelpingustakeastrategicviewandunderstandhowwecanbest

supportnewdirectionsforhealthylifestyles."

Osnat Golan

StraussGroupVPCommunications

Work-life balance"Work-lifebalanceisanintegralpartofmaintaining

ahealthylifestyle,supportingemployeesin

maintainingbothaproductivecareerandfamilylife.

Companiesmustactivelysupportwork-lifebalance,

ratherthanjustmakepolicydeclarations."

Sharon Abraham-Weiss, Adv.

RegionalCommissionerattheEqualEmployment

OpportunitiesCommission(EEOC)

Clarity"Maintainingahealthydietand

consumingtherightfoodisof

greatconcerntothepublictoday.

Oneoftheissuesoftenraisedisthe

lackofclarityandaccessibilityof

nutritionalinformationlabeling."

Shelly Mashal

DistrictDietician,

MaccabiHealthServices

The main aspects raised by stakeholders in this meeting included:

Partnerships for

healthy lifestylesItisimportanttodeveloppartnerships

betweengovernmentagencies,retailers

andfoodandbeveragecompaniesto

improveproductnutritionalvalues,andraise

awarenessamongconsumersofdifferent

waystoadopthealthylifestyles.Inparticular,

alongsidehealthyeating,physicalexercise

shouldbeencouraged.Inparallel,food

companiesmustaddressthethenutritional

valueoftheirproducts,includingsalt,sugar

andfatlevels,andnewregulationinthisarea

willcontinuetoprovidenewstandardsthatall

companieswillberequiredtomeet.

Marketing and communications

Foodcompaniesmustengageintransparent

communicationsandshareinformationabout

productsinthemarket.Inparallel,companies

mustprovideclearproductlabels,inform

appropriatelyaboutfoodingredientsand

nutritionalvalues,andengageinresponsible

marketingpractices.

Inclusive food and nutritionFoodcompaniesmusthelpraiseawareness

ofhealthylifestyleoptionsamongdiverse

groupswithdiversenutritionalneeds,

andworktoincreaseaccessibilityand

affordabilityofhealthyfoodoptionsfor

thosewithlowsocio-economicprofiles

aswellasthosewithspecialhealthneeds.

Foodcompaniesshouldhelpencourage

theadoptionofhealthyhabitsamong

underprivilegedpopulations,andconsider

adaptingproductstotheneedsofthosewith

specificdietaryrequirements.

Impacts on the environmentAsacompanywithalargefootprintinIsrael,

Straussmustaddressitsenvironmental

impacts,especiallyonagriculture,food

wasteandpackagingwaste.Strausscanalso

helpeducatethepublictoadoptgreater

environmentalconsciousness.

Aron Cramer is the CEO of

BSR, a global organization

that advances the

integration of sustainability

in business and promotes

collaboration for

sustainable development.

Aron is recognized

globally as a preeminent

authority on corporate

responsibility and

sustainability strategy. He

advises senior executives

at more than 250 BSR

member companies and

is a frequent speaker on

sustainability issues.

| 2322 |

"Thefoodandbeverageindustryiscentral

tosociety’smostfundamentalneed:

foodandnutrition.Intoday’sworld,more

peopleareabletomeettheirbasicneeds

forfoodthaneverbefore.Thisprogressis

threatenedbythenewrealitiesofbusiness

inaclimate-constrainedworld.Asaccessto

foodincreases,newhealthchallengesare

emerging.Throughouthistory,humanshave

facedastruggletoobtainsufficientamounts

offood:thesearchformorecalories.In

today’sworld,thechallengeformanypeople

isverydifferent.Thetwenty-firstcenturynow

seeshealthproblemscausedbyexcessive

consumptionandpoornutritionalcontent.

Foodproductionnowfaceswaterscarcity

thatisexacerbatedbyclimatechange.Itis

essentialthatfoodcompanieslikeStrauss

understandthiscontext,anddeveloptheir

strategiesaccordingly.

Theultimatetestofthesustainability

ofafoodandbeveragecompany-asit

isforanycompany-isaboutthecore

productsandservicesitmarkets.Food

companiesshouldalsobeapartofsystemic

changesthatenableatrulysustainable

foodsystemforaglobalpopulation.

Leadingcompaniesengagewithglobal

industryandvaluechainpartnersto

drivemeaningfulprogress,aswellas

deepeningconnectionsinlocalmarkets.

Anissuewhichcutsacrossallaspectsofthe

foodvaluechainisfoodwaste.Byaddressing

foodwaste,especiallyinasluggishglobal

economyandamidstsevereresourcescarcity,

thefoodindustrycanmakeameaningful

differenceandcreateahugewin-win

forconsumers,foodcompaniesandthe

environment.ThisisnotanissueforStrauss

toresolveonitsownbutitshouldbeworth

consideration.

Straussshouldbefocusedonrealissues

thataredrivenbycoreproducts.These

couldincludeenhancingconsumerchoice,

helpingconsumersunderstandthehealth

implicationsofconsumptionhabits,through

productlabelingandothermeans,and

sustainablesourcing.Humanrightsisalsoa

topicthatisrisinginvisibilityandimportance,

andthereisanopportunityforStrausstolook

inparticularatitsimpactonwomen.There

isabigpushinthefoodandagrisector,for

example,tohelpwomenfarmersgetinto

globalsupplychains.Thiscanprovidegreat

socialvalue.

Anothermarkofaleadershipcompanyishow

wellitdefinesandmeasuresitslongterm

sustainabilitytargets.Sometopics,likewater

andenergyuse,arerelativelyeasytomeasure.

Butotherareascrucialtoinclusiveprosperity,

suchashowyoumeasurethewayyouimprove

Perspectivesfrom Aron Cramer, CEO, BSR(Business for Social Responsibility)

people'slives,ismorecomplexandqualitative.

Thisisallrelatedtowhatmaybetheultimate

challengeforsustainabilityreports:howto

providecrucialinformationinashorterformat

thatismorefocused.IbelieveStrauss'smore

strategicapproachshouldhelpdelivera

compellingreportthisyear."

Strauss should be focused on real issues that are driven by core products. These could include enhancing consumer choice, helping consumers understand the health implications of consumption habits, through product labeling and other means, and sustainable sourcing.

Improving lives

| 2726 |

Focus Strategic Goals Aspects Indicators

•Makingfoodhealthier

•Addinghealthtofoodanddrink

•Raisinghealthylifestyle

awareness

•Investinginnutritionalresearch

•Improveconsumerwellbeingthroughincreased

salesofproductswithahealthylifestyleclaimby

15%by2020.

•Engageconsumersinhealthylifestyleactivities

througheachStraussGroupcompany,reaching

10millionconsumersby2020.

•Engageinaglobalstrategicsocialpartnership

withamulti-yearcommitmenttoimprove

healthylifestylepractices.

•Localcommunities

•Healthyandaffordablefood

•Customerhealthandsafety

•Indirecteconomicimpacts

G4-SO1

G4-EC8

FP4

FP6

FP7

Promoting healthy lifestyles

Promotinghealthylifestylesisapriority

sustainabilityissueforStraussGroupbecause

itisextremelyimportanttoourconsumers.

Ahealthylifestylecanbedefinedinmany

differentways,andmeandifferentthingsto

differentpeople.Forsome,thefocusison

accesstonutritiousfood,especiallyforthose

whofacechallengesinfoodavailabilityand

affordability.Forothers,ahealthylifestyle

maymeanavoidingconsumptionofcertain

typesoffoodsuchasthosehighinfat,

gluten,sugarorsalt.Manydefineahealthy

lifestyleasonethatincludesweightcontrol

andphysicalexercise,whileforothers,

relaxationandstressmanagementare

important.Othersfinditimportanttoavoid

Strategyto actionMaking food healthierConsumersaremoreawarethaneverbefore

ofthenutritionalvaluesofdifferentfood

products,andofthepotentiallynegative

consequencesofconsumingtoomany

calories.Asanindustry,foodmanufacturers

havebeenfindingwaystoreducelevelsof

high-calorieingredientstomakefoodthat

hasgreaternutritionalbenefit.AtStrauss,we

havealsobeenworkingtirelesslytoensure

ourbrandsprovideimprovednutritional

benefitforourconsumersandsupportthe

adoptionofhealthylifestyles.

Unfortunately,theselessnutritiousfood

ingredientsareoftentheonesthatprovide

consumerswiththetastetheylove,so

reformulationisnoeasytask.However,

forthepastseveralyears,atStrauss

Israel,wehavebeenprogressingaclearly

definedmulti-yearplantoreformulateour

productstoreducesalt,fatandsugar,while

retainingtexture,tasteandallotherhealthy

parametersofourproducts.

Sugar Ahealthylifestyleincludescalorie

managementandcarefulmanagementof

sugarintake.Asfoodmanufacturers,wehave

supportedareductioninsugarconsumption

andhavebeensystematicallyreducingadded

sugarcontentinourproducts.Forexample,

wehavereducedthesugarcontentinour

Actimelproductbymakingachangeto

theproductionprocesswithoutrequiring

additionalingredientstobeaddedor

significantlyalteringtheproducttaste.Inall

ofourfruityogurtsandyogurtbeverages,

wehavereformulatedtoreduceupto20-25

percentaddedsugarcontent.Similarly,we

reducedsugarlevelsinourchocolatemilk

andourchocolatebarsundertheElitebrand.

SaltDuringthepastthreeyears,wehavereduced

thesaltcontentofourTapuchipssnackby

7percent,savingalmost3,000kgofsaltin

productionofthisonebrand,aspartofour

overallmulti-yearplantoreducesaltcontent

acrossarangeofproducts.Alongsideour

ownsalt-reductionprogram,weparticipate

inagovernmentalinitiative,promotedby

theIsraeliMinistryofHealth,toreducing

dailysodiumintakeoftheIsraelipopulation

by3grams,from9gramsto6gramsper

dayperperson,by2020,inordertoreduce

healthrisksassociatedwithexcessivesalt

intake.TheprograminvolvesIsrael'sleading

dairyproductmanufacturers,andafter

consultationwithmanufacturers,thefirst

productswithfocusedgovernment-led

targetsforsaltreductionweredefinedas

cottagecheeseandsoftwhitecheese.

20%-25% 7%Reduced saltcontent in our Tapuchips snack

Reduced sugarin all of our fruit yogurts and yogurt beverages

differentformsofchemicals,alcoholand

tobacco.Forsome,ahealthylifestyleincludes

alloftheabove.Whatevertheprimefocus

ofanyone'sdefinitionofhealthylifestyle,the

primecontributionwecanmakeasafood

andbeveragecompanyistoprovideabroad

rangeofproductsforourconsumersthat

helpimprovetheirlives.

| 2928 |

FatWehavebeensystematicallyreducing

addedfatcontentinourproducts.For

example,inearly2014wecreateda

breakthroughinourleadinghummussalad

brand.HummusisoneofStrauss'shighest

sellingproducts,andisasignificantelement

ofthestapleMiddleEasterndietinIsrael.

OurnewCountryHummusproductcontains

noaddedoil,retainingonlyfatcontentthat

isnaturallypresentintherawsesameseed

paste(tahini),akeyingredientinhummus

salad.Therefore,thefatcontentofCountry

Hummusis9.5gramsoffatper100grams

ofproduct,whichissignificantlylowerthan

thefatcontentofsimilarhummusproducts.

Atthesametime,wewereabletoincrease

thelevelofproteinintheproductby13

percent.AsIsraelconsumesintotalover

30,000tonsofhummussaladperyear,and

muchofthisisconsumedbyyoungchildren,

ourlowerfatcontenthigher-protein

hummussaladcanmakeasignificant

contributiontoimprovinghealthylifestyles

andthequalityoflifeformillions.

Food choices fora healthy lifestyleInadditiontomakingexistingfoodproducts

healthier,wetrytocreatemoreand

betterfoodchoicesfordifferenttypesof

consumers.Thisincludesproductsthatoffer

portioncontrolforadultswhowishtocontrol

theircalorieintake,healthyvegetablesnacks

attractivetokids,freshsaladoptionsand

productswithnutritionalbenefitsunderour

Energybrand.

Adultslookingforasweetchocolatetreat

nowhavetheoptionofanewchocolatebar

withaddedbenefits.Our92caloriechocolate

bar,alower-caloriechocolatebarthatwe

developedincollaborationwithaleading

researchuniversity,TheTechnion,andaleadingscienceinstitute,theWeizmann

Institute,isanexampleofthis.Thechocolate

isrichinnutritionalfibersandcalcium,with

alowglycemicindexvalueof20(versus

50inregularchocolate),whichmeansthe

carbohydratesinthechocolatebreakdown

moreslowly,releasingglucosemoregradually

intothebloodstream.Our92caloriechocolate

barcomesincontrolledportionsof25grams.

Adultsandkidslookingforfreshsnacksand

menuoptionscancontinuetoenjoyour

expandedfreshsaladsrange.Forexample,

followingthesuccessofourcarrotsnack

packsforadultslastyear,weintroduceda

carrotsnackpackforkids.Thepackaging

andmarketingoftheproductincludes

Disneycharacterstohelpchildrenassociate

healthyfoodchoiceswithfun.Foradults,we

createdinnovativefreshsaladoptionssuch

asbeetroot,zucchiniandonionsalads.These

aremadewithlocallygrownproduceand

providenewandhealthytastesforhealthy

lifestyleoptions.

Otherinnovationsin2013includeasingle-

portionready-mealdairyravioli,whichis

readyinoneminute,awidevarietyofsoft

whitecheesespreadwithdifferentfresh

flavors,andmore100-calorieproductsfor

strictcaloriecontroloptions.Overall,in2013,

weofferedmorethan30newproductor

productvariantstoimprovethequalityoflife

forconsumersinIsrael.

Adding nutritional benefits to food and drinkThepursuitofahealthylifestylemayalso

mean,forsome,theinclusionoffoodchoices

whichmakeapositivecontributiontohealth,

offeringmorethanstandardfoodchoices.

Fortifiedandfunctionalfoodchoicescontain

ingredientsthatmayhelpreduceriskfor

certainhealthconditions.Theseproducts

aregenerallybasedoningredientsthat

occurnaturallyorcanbeaddedduringthe

manufacturingprocess.Thekeyareasin

whichweaddnutritionalbenefitstofoodand

drinkincludefortifyingourdairyproductswith

vitaminsandminerals,providingprobioticand

phytosterol-basedfunctionalfoodoptions,

andintroducingfunctionalinnovationsinthe

beveragecategorytoprovidemorenutritional

benefitsinallsortsofdifferentways.

Food and moreDanacolisayogurtdrinkenrichedwithphytosterols,

proventohelpreducecholesterollevelsbyupto15%.

Actimelisaprobioticyogurtdrinkthathelpsstrengthen

thebody'snaturaldefenses.Inadditiontoregularyogurt

cultures,eachbottle(100ml)ofActimelcontainsover10

billionliveL.caseibacteria.

Strauss'snewenrichedcottageandwhitecheese

containaquarterofdailycalciumandvitaminD

requirementsinahalf-cupportion.

OurnewYotvataEnrichedMilkcontains30%ofdaily

calciumandvitaminDrequirements.

Strauss'sGamadimsoftcheesebrandistheonlyproduct

ofitskindwithauniquecompositionofiron,zinc,

vitaminsandcalcium,especiallyadaptedforchildren.

The fat content of Country Hummus is 9.5 grams of fat per 100 grams of product, which is significantly lower than the fat content of similar hummus products.

Overall, in 2013, we offered more than 30 new products or product variants to improve the quality of life for consumers in Israel.

| 3130 |

Gum and moreIn2013,weintroducedanewchewinggum

coatedwithxylitolunderourBazookaand

Mustbrands.Xylitolisanaturalsugaralcohol

thathelpspreventcavitieswhilebeingequal

insweetnesstastetosugar.Ourregular

chewinggumpelletshavebeencoated

withxylitolforthepasttwoyears.Thisyear,

wehaveexpandedthisforthebenefitof

childrenforwhomBazookaisapopular

optionandalsowedevelopedachewing

gumwith100percentxylitolthatretains

freshnessfor45minutes.

Coffee and moreIn2013,StraussCoffeelaunchedtwonew

andinnovativecoffeeproductsthatoffer

healthylifestylesolutionsforconsumers

thatseekaddedvaluefromtheirinstant

coffee.Thefirstisauniqueinstantcoffee

drinkthatincludesnutritionalfibertoaid

afeelingofsatietyforthoseinterestedin

controllingcalorieintake,whiletheotherisa

Turkishcoffeebeveragethatisenrichedwith

polyphenolsthatsupporthealthbenefits.

Balance CoffeeIn2013,welaunchedarevolutionarynew

coffeebeverageleveragingthestrong

coffee-drinkinghabitinIsrael.Ournew

coffeeunderourElitebrandiscalled

Balance,andisarichBraziliancoffee

containingcornandchicoryfiberandmilk-

basedproteins.OnecupofBalancecontains

upto23percentoftherecommendeddaily

fiberconsumption.

InIsrael,peopledrinkanaverageof3.5

cupsofcoffeeaday.Balanceisdesignedfor

consumersthatwanttofeelsatiatedatthe

mostchallenginghoursofthedaybetween

mealsoratsnacktimes.Drinkingonecup

ofBalancepromotesasenseofsatietyfor

uptothreehours.WeightWatchersIsrael

hastestedBalanceandrecommendsitto

membersaspartofacontrolleddiet.

Turkish coffeeIn2013,welaunched,underourEliteTurkish

coffeebrand,acoffeebeveragethatcontains

30percentmorepolyphenolscompared

toregularEliteTurkishcoffee.Polyphenols

areaformofantioxidantsthatarefoundin

coffee,andunderstoodtopossessavariety

ofpotentialhealthbenefits.Inrecentyears,

studiesconfirmthereareseveralhealth

benefitstomoderatecoffeeconsumption

andinparticularTurkishcoffee.InIsrael,40

percentofadultsdrinkTurkishcoffeeatleast

onceaweek.

Coffee and sportsInordertohelpincreaseconsumers'

understandingofthewellbeingbenefitsof

coffee,especiallywhenconsumedaspart

ofahealthylifestylethatincludesphysical

exercise,wehostedaneducationalcoffee

campaigndesignedtoraiseawarenessthat

drinkingTurkishcoffeebeforesporting

activitiescanimprovesportingachievements.

Weprovidedmorethan55,000cupsof

freecoffee,andmorethan80,000one-cup

sachetsthroughouttheyear,incollaboration

withdieticiansandsportingexperts.Ina

representativesampleof500peoplethat

testedtheirviewsaboutcoffeebenefits,

awarenessincreasedto26percentinMarch

2014fromjust11percentinJuly2012.

Investing in nutritional research WemaintaintheStraussInstituteto

supportourmissionofimprovingpeople’s

livesbyadvancingnutritionalresearch,

holdingscientificconferencesfornutrition

professionals,andpromotinghealthy

lifestylesinthecommunity.TheStrauss

Institutecontinuesactivitiesconductedby

theDanoneInstituteinIsraelforthepast

14years,andcollaborateswithDanone

Institutesaroundtheworld.StraussInstitute

activitiesaredirectedbyascientificcouncilof

fiveleadingacademicsandresearchersinthe

fieldofnutritioninIsrael.

In2013,welaunchedanewStraussInstitute

websiteinIsrael(strauss-institute.com).The

siteincludesinformationforconsumers

andhealthcareprofessionalstosupport

awarenessofhealthyandbalanceddiets.

During2013,thesitewaspilotedamong

1,200healthprofessionalswhorevisitthe

siteregularlyatarateofmorethan700

entriespermonth.

In2013,StraussInstituteawardedresearch

grantsforstudentsinterestedinexamining

thelinkbetweennutritionchoices,food

ingredientsandhealth.Fourgrantstotaling

morethan$50,000wenttothreedoctoral

studentsandonemastersstudentfrom

differentuniversities.Weplantomake

availableupto$60,000annuallyinsuch

researchgrants.

Weight Watchers"WeightWatchersoperatesover500groupsinIsrael,hosting15,000weightwatchers

everyweek.Groupmembersandleadersactasasupportsystem,rolemodelsanda

sourceofinspiration.The"PointsPlus"systemassistsourcustomersinmaintaining

ahealthyandbalancedlifestyleandcopebetterwiththeirweight.Wearehappyto

collaboratewithcompaniesthatprovideproductswhichareproventocontributetothe

effortsofmaintaininghealthyweightandpromotingahealthylifestyle."

Lilit Romem, CEO,

WeightWatchersIsrael

| 3332 |

Sabra’s Center of ExcellenceIn2013,Sabraofficiallylauncheda“Center

ofExcellence”,inVirginia,U.S.,alongside

Sabra'smanufacturingplant.TheCenter,

thefirstofitskindinthedipsandspreads

industry,willactasapointofinnovationfor

advancingresearchcapabilitiesandhelp

improveourproductsinallaspectsofraw

materialsourcing,manufacturing,packaging

anddistribution.

TheCenterworksincollaborationwith

universitiesandagriculturalresearch

centers,andhousesexpertsinculinaryarts,

foodtechnologyandnutrition.Theplanis

toconductgroundbreakingresearchon

chickpeas,fruitsandvegetables.Thisactivity

isaimedatsupportingcontinuousinnovation

whilefocusingonproductdiversity,high

nutritionalvalues,qualityandtaste.The

Centerfeaturesastateoftheartculinary

center,researchlaboratory,ideationspace,a

pilotplantandhands-onresearchmodules.

Inaddition,intheU.S.,thegrowthofthe

hummusmarkethasmadeanotherpositive

impact.FarmersinVirginiaStatehaveturned

tohummusinthefaceofdecliningtobacco

demand,theirprimarymarketupuntil

recently.Sabra,incollaborationwithVirginia

StateUniversity,advancesresearchthatwill

supportVirginianfarmersbecomemore

efficientandmaintaintheirlivelihoodsas

theyconverttohummusproduction.

Raising healthy lifestyle awareness Akeyopportunitytohelpconsumerstake

aproactiveapproachtohealthylifestylesis

toensuretheyareawareofbasicnutritional

guidelines,theimpactofdifferentnutritional

elementsintheirdietandhavethetools

toadopteatinghabitsthatmakesensefor

them.Asalargefoodandbeveragegroup

thatinvestsconsiderablyinresearch,wehave

manyresourcesatourdisposalthatcanhelp

theprofessionalcommunityofdieticians

andnutritionists,andultimately,those

whoconsumeourproducts.Weshareour

professionalknowledgewithdieticiansand

nutritionprofessionalsthroughworkshops,

informationboothsatconferences,tours

ofStraussmanufacturingsitesandonline

activities.During2013,morethan2,000

dieticiansparticipatedindifferentactivities

whichhelpedenrichtheirknowledgeand

understandingofhowourproductscan

contributetohealthylifestylechoices.

Ahighlightoftheyearwasthehalf-day

workshopwehostedwithalectureonhealthy

productsforchildrenbyStraussIsrael'schief

nutritionistandacookerymaster-classby

PhyllisGlazer,awell-knownculinaryexpert

specializinginhealthycooking.

Nutritional tools for kidsIn2013,welaunched,aspartofourStrauss

Institutewebsite,afungamethathelpskids

learnmoreaboutnutritioninaninteractive

way.TheonlinetooliscalledMealsfrom

theMovies,andinviteschildrentocreatea

balanced,portion-controlledmealinaway

whichmakesuseofthedifferentfooditems

toformapersonalmovieonthescreen.

Eachofthefoodtypesare"actors"inthe

movieandexplaintheirroleinananimated

song.Thisgamemakeslearningabout

nutritionfun,andprovidesabasicnutritional

understandingwhichshouldhelpchildren

adopthealthyeatinghabitsastheygrowinto

adultsleadinghealthylifestyles.Excellence“TheCenterofExcellenceisnowhometo

expertsinallareasoffoodmanufacturingand

weareeagertoputourfindingstoworkaswe

continuetochangethewayconsumersaround

theworlddipandspread.Aswebuildonour

heritagetoinventthefuture,wewillcontinue

tobeinspiredbyglobaladvancesinfood

productionandaimtofurtherourleadership

withinthecategory.Thismarksasignificant

stepforwardinourpursuittobringthediversity

oftheworldtolifethroughanarrayoffresh

tasting,realandwholesomeproducts.”

Tulin Tuzel

ChiefTechnologyOfficer,Sabra

The new Sabra Center of Excellence will act as a point of innovation for advancing research capabilities and help improve our products.

During 2013, more than 2,000 dieticians participated in different activities which helped enrich their knowledge and understanding of how our products can contribute to healthy lifestyle choices.

| 3534 |

Informed consumer choicesProducttransparencyandresponsible

marketing,includingproductclaims

associatedwithourproducts,andthe

nutritionalinformationweprovide,isan

importantsustainabilityissuebecause

ithelpsconsumersmakeinformed

choicesaboutwhatfoodsandbeverages

topurchaseandtoconsume.Proper

understandingofwhatfoodcontainsisan

essentialprerequisiteformakinghealthy

foodchoicesandleadinghealthylifestyles.

Nielsenresearchshowsthat59percentof

consumersaroundtheworldhavedifficulty

understandingnutritionallabelsonfood

packaging.AtStrauss,weaimtoachievethe

highestpossibletransparency,beyondfood

andlabelingregulatoryrequirementswhere

possible,andweencourageconsumersto

takeakeeninterestandaskusforfurther

informationtheymightrequire.

Strategy to actionClear product labeling and nutritional information for consumersWithintheconstraintsofproductpackaging

andthelargeamountofinformationthat

mustbeprovidedbylawforconsumers,

weaimtomakeourlabelingasclearas

possibleandensurethatprominentaspects

relatingtotheproductcontentisvisible

totheconsumer.Forexample,inEurope,

legislationrequiresallergenicinformation

onproductlabels.Thiswillnotbelawin

Israeluntil2015,butatpresent,wepresent

suchinformationonourproductsto

ensurethatourconsumershavethebest

informationavailableatalltimes.

Internally,weareconstantlyvigilantand

alerttoallnewregulationrelatingto

productlabelingrequirements,andensure

thatallrelevantstaffmembersareinformed

andchangesaremadeaccordingly.In

manycases,weprepareourselvesaheadof

regulationcomingintoforce.

Customer satisfaction and serviceOursuccessismeasuredinourcustomer

satisfaction.Weaimtoensureall

consumersaredelightedwithStrauss

products,includingfoodproducts,

coffeebeverages,StraussWaterBarsor

adeliciousdessertatoneofourMax

BrennerChocolateBars.Weaimtoensure

thatourconsumersandcustomersget

thebestproductqualityandalsothebest

service.Overallin2013,werecordedover

154,000interactionswithcustomers

initiatedthroughourcallcenterand

onlinemediaplatforms.That'smorethan

660conversationseverysingleworking

dayoftheyear.

The voice of the consumer

In2013,inIsrael,weinitiatedaprogramto

bringthevoiceoftheconsumerrightonto

theproductionfloor,intotheconference

roomandintotheheartsandmindsofour

employeesandmanagers.Wedothisby

playingrecordingsofcallsfromconsumers

receivedbyourcallcentertoemployees

andmanagersinarangeofroles.The

callsinevitablyengenderdiscussionabout

instancesofcustomerdissatisfaction

expressedinthecalls,andthecorrective

actionwecantaketopreventrecurrence.

Thisprocessbringsconsumerissuestolife

andmakesthemveryrealforallourstaff.

Severalspecificproductimprovementshave

beenmadeasaresultoftheseinterventions,

bothtoproductsandtopackaging.

The new flag system

In2013,weimplementedafurtherimprovementinourconsumercall

center,basedonasystemofcallcenterrepresentatives"raisingflags"to

helpdealwithseriousqualityissuesinrealtime.Thisnewprocessraises

attentiontotypesofcomplaintsthatmaynothavebeenidentifiedas

immediatepriority(forexample,notlife-threatening)butnevertheless

representacriticalissueintermsofconsumertrust.Anincidentraised

withaflagisimmediatelyaddressed,analyzedandactionrequiredistaken

withoutdelay,andinformationisloopedbacktotherepresentativewho

raisedtheflagtocompletethecycle.Inthisway,wemaintainconsumer

trustandconfidencerelatingtoissuesthatareimportanttothem,andare

thankfultothemforalertingustopotentiallyseriousqualityissues.

Product transparency and responsible marketingFocus Strategic Goals Aspects Indicators

•Clearproductlabelingandnutritional

informationforconsumers

•Customersatisfactionandservice

•Responsiblemarketingcommunications

•Meetallregulatoryrequirements

inallmarkets.

•Continuouslyimproveouraccessibility

andservicelevelforcustomersand

consumers.

•Productandservice

labeling

•Marketing

communications

G4-PR3,

G4-PR5,

G4-PR7,

G4-FP8

of consumers perceive Strauss as

highly attentive to consumers

of consumers confirmed our call-center responses are

very good or excellent 75%85%

| 3736 |

Responsible marketing communications Ourmarketingcommunicationsarebased

onourcorporatevaluesandcomplywithall

marketingregulations,aimingtoexclude

anyharmful,immoral,irresponsibleor

misleadingcontent.Westrivetobuild

long-termtrustamongourconsumersby

communicatingwithintegrityandfulfilling

ourpromises.Ourmarketingstaffisfully

trainedinourCodeofEthicsandapproach

toresponsiblecommunications.

Customer Privacy

AtStrauss,weattributethehighest

importancetocustomerprivacy.Weadhere

toalllaws,rulesandregulationsandstrict

internalproceduresrelatingtoprivacy.We

carefullymanageinformationsecurityas

wemaintainourdatabaseofconsumers

andensurewehaverequiredapprovalsfor

mailingstothem.Wedonotshareconsumer

informationwithanythirdparty.

Getting close to customersOurconsumersareabletopurchasetheir

productsthroughanetworkofwholesale

andretailsalesoutlets.Theseorganizations

arecriticalpartnersforStrauss,asthe

waytheydobusinesscansignificantly

affecttheavailability,quality,affordability

andoverallpresenceofourproductsin

thedifferentmarketplaceswherewe

operatearoundtheworld.Asourmarkets

change,ourcustomersbecomesmarter,

moreawareandmoredemanding.We

investexceptionaleffortstounderstand

ourcustomers'needs,createpositive

relationshipsandestablishaframeworkof

interactionsbasedonmutualtrust.

StraussIsraelhasover10,000points

ofsalesaroundthecountry,including

smallretailersandchainsupermarkets.

Threeyearsago,welaunchedaprogram

toensureourentireorganizationis

compellinglycustomer-oriented.Aspart

ofthisprogram,werolledoutaworkshop

for42salesdistrictmanagerstoincrease

commitmentandprovidetoolstohelpthe

salesteamunderstandandengagewith

customersatadeeperlevel.Eachsales

managertakespartinvisitsduringwhich

they"shadow"thecustomertounderstand

thekeyissuesanddecisionsthatare

madeinatypicalday,andcanidentify

morepreciselywiththecustomers'needs.

Morethan30suchshadowvisitstook

placein2013,andhelpedusseethrough

ourcustomers'eyeshowwecanfurther

contributetoadvancinghealthylifestyles

andprovideoutstandingservice.

Understanding customers"Welearnedfromourcustomervisitsthatretailers

interactwithmultiplestakeholders:customers,

employees,suppliersandothers,dealingwithmany

challengesonadailybasis.Weaimtobesupportive

bylisteningtowhat'simportanttothemandprovidingaddedvaluethrough

flexibilityandcollaboration."

Eran Hay-Yosef

SalesandDistributionManager,StraussIsrael

Engaging our employeesFocus Strategic Goals Aspects Indicators

•Employeeengagement

•Leadershipanddevelopment

•Health,safetyandwellbeing

•Employeebenefitsand

compensation

•Improveemployeewellnessbyreducingriskinthree

areas–cardio(fitness,weight),respiratory(smoking)

andprevention(voluntarycheckups),asmeasuredon

ahealth-riskindexusing2015asabaseline.

•Maintainemployeeengagementabove80%.

•Reduceworkinjuryratetonomorethan3injuriesper

100employeesby2020.

•Reducelostdaysduetoinjuryrateto

nomorethan40lostdaysper100

employeesby2020.

•Employment

•Occupationalhealth

andsafety

•Trainingandeducation

G4-LA1,

G4-LA6,

G4-LA10,

G4-LA11

| 3938 |

Leadership, developmentand trainingIn2013,wetookthefirststepstowards

implementingournewleadershipandcore

competencyMOVEmodel("Me,Others,

Vision,Execution")inorganizational

processesthroughouttheStraussGroup

companies.WeexpectthatusingtheMOVE

modelwillhelpusexpandourleadership

pipelineincomingyears.

Training

Weprovideformaltraininginavarietyof

deliveryformatstohelpemployeesimprove

theirknowledgeandskillsaspartofoverall

developmentplansidentifiedduringthe

annualperformanceevaluation.Training

istargetedtomeetingprofessionalneeds

andpersonaldevelopmentopportunities

tohelpemployeestodobetterwhatthey

dobest.In2013,welaunchedacomputer-

basedLearningManagementSystemfor

StraussIsraeloffice-basedemployees,

coveringCR-relatedtopicsincludingsexualharassmentprevention,Code

ofEthics,officesafety,informationsecurity,andmore.Following

completionofthemodule,participantsmustconfirmunderstanding

inashorttest.Todate,1,500employeeshavecompletedthe

program.Overallin2013,weinvestedover190,000hoursof

trainingformorethan10,000employeesatalllevels.

Job skills in an automated environment

Anotherareawhereweinvestedheavilytoimprovethe

capabilitiesofouremployeesisintheadaptationtoan

automatedworkenvironment.Automationrequires

differentskillsandcapabilitiesfromproductionoperators

andmaintenancestaffandthetransitionisbynomeans

trivial.Ratherthanreleaseemployeesasweintroduce

newtechnology,wetrustthecapabilityofouremployeesto

embracechangeand,withappropriatetraining,workwiththe

manufacturingteamstodelivergreatresultsforourconsumers.

Aligning our organization to meet sustainability goalsAligningourorganizationtomeet

sustainabilitygoalsisimportantbecause

itisouremployeesinallpartsofStrauss

Groupthatdeterminewhetherwewill

besuccessfulornot.Asadiversegroup,

operatinginmanycountriesandcultures,

wemustallshareacommonsetofvalues

andbeinspiredbyacommonvisionand

purpose.Wealignourorganizationby

embeddingourvalues,trulycaringfor

ouremployees'safetyandwellbeing,

investingindevelopingtheircapabilities

andrewardingthemfortheirtirelessefforts.

Wevaluediversityandaimtocreatean

inclusiveworkplace.Thispaysoffforour

business-statisticsshowthatorganizations

withahighlevelofengagementreport

higherproductivityandhigherprofitability

-anditpaysoffforsociety,as,withmore

than13,500employeesbuildingalivelihood

withintheStraussGrouporganization,

theeconomicandsocialbenefitsforlocal

communitiesarewidespread.

Strategy to action Employee engagement Weperformaglobalemployee

engagementsurveyeverytwoyears

andthemostrecentglobalsurveywas

conductedin2013.Withinaglobally

alignedframework,eachStraussGroup

companytailoredanengagementsurvey

tomeetspecificorganizationalneeds

whileretainingacorethatiscommon

acrosstheentireGroup.Thecommon

elementsincludedfifteenspecificquestions

weaskedofallouremployeesaroundthe

world,includingquestionsoncorporate

responsibilityandbusinessethics.Overallin

2013,weachievedan84percentresponse

rate,with5,634responsesoutofatotal

6,646thatwereinvitedtoparticipate.In

general,acrossourmarkets,wefound

thatourengagementscoresrangedfrom

75percentto92percentindifferent

companies,agenerallypositiveresultby

anystandard,butonethatleavesuswith

aspirationstodoevenbetter.

Theareasthatouremployeesweremost

positiveaboutincludeourperformancein

improvingqualityoflifeforourconsumers,

andbeingasociallyresponsiblecompany.

Thetopthreeresultsincludedshowedthat

90percentormoreofouremployees

believethat:

•Ourproductsaddvaluetoourconsumers'

qualityoflife

•Ourcompanyissociallyresponsible

•Ourworkenvironmentisfreefromharassment.

Theareasthatouremployeesscoredless

wellwereintheareasofdrivingforpersonal

excellenceandleadership.

In general, across our markets, we found that engagementscores ranged from 75% to 92% in different companies

Overall in 2013, we invested over 190,000 hours of training for more than 10,000 employees at all levels.

| 4140 |

Expanding safety managementIn2013,weexpandedournewsafety

programtooureightfactoriesinIsrael.The

programisbasedonhands-onmanagement

involvementinsafetywithdailyfactorytours

bymanagersonarotatingschedule.

Duringthetours,managersobserve

productionpractices,engageindiscussion

withemployeesandnotesafetyimprovement

actionforfollowup.Thisisa"gemba"-style

practice,takenfromJapaneseprinciplesof

leanmanagement.Wealsoimplemented

a"gemba"standardworkcertificationfor

managerstoensurealignmentandcorrect

useofthesystem.In2013,47managersat

ourAchihudfactoryinIsraelwerecertified

andengagewithemployeestoimprovesafety

asaregularpartoftheirwork.Webelievethis

approachhascontributedtoasignificant

improvementinoursafetyperformance.In

2013,StraussIsrael,recordeda29percent

reductioninlosttimeinjuriesanda17

percentreductioninlosttimedays.

Our safety performanceOverall,ourinjuryrateper100employees

group-widein2013was4.46injuriesper

100employees.Ourstrategictargetisto

reducelost-timeinjuriestobelow3injuries

per100employees.In2013,ourposition

movedslightlyintherightdirection,down

from4.93in2012duetoourongoing

investmentinreducingsafetyrisksand

improvingpractice.

Weregrettoreportthatin2013,oneofour

employeesatourBrazilfactorylosthislifein

acaraccidentonthewayhomefromwork.

ErgonomicsIn2013,wecontinuedinvestinginimproving

workplaceergonomicstoimproveemployee

workingconditions,preventoccupational

hazards,andimproveefficiency.Weinitiated

aproactiveprogramforergonomics

improvementthatincludedextensivetraining

andskillsdevelopmentfor25individuals

nominatedasergonomicspecialists.We

conductedriskassessmentrelatingto

ergonomicsaroundourdifferentsitesand

completedworkstationredesignalong

ergonomicprinciplesatseverallocations.

Health, safetyand wellbeingWeremaincommittedtoprovidingasafe

andhealthyworkenvironmentandstrive

tocontinuouslyimproveourperformance.

WeemploytrainedSafetyOfficersinallour

locationsandtheymaintainanintensive

paceofsafetytrainingandworkshopsin

allpartsofthebusiness.Insomelocations,

suchasIsrael,RomaniaandPoland,we

haveimplementedthestandardOHSAS

18001,arecognizedqualitystandard

insafetymanagement.Weconduct

regularsafetyaudits,identifyhazards

andtakecorrectiveaction.Wealsostrive

toeliminatehealthriskstoemployees,

andoursafetyprogramincludeshealth-

relatededucationandtraining.Atsome

locations,weemployaphysicianwho

providesmedicalconsultationsandadvice

foremployees.Attentiontosafetyalso

includesroadsafetyforourstaffinvolved

insalesroleswhichrequireroadtravel,as

wellasinstillingacultureofsafedrivingfor

thoseemployeeswhotraveltoandfrom

workincars.Incaseswhereweprovide

companyvehicles,thesearefittedwith

thehigheststandardsofsafetyequipment

andaccessories.In2013,weinvested

$1.85millioninequipmentandtoolsinour

operationsindifferentcountriestomake

ourworkingenvironmentsaferforallour

employees.

The number of lost workdays as a result

of work injuries reduced by 16.94% in

2013. This is a reduction of 1,932 lost

workdays in 2013.

Our overall injury rate per 100

employees reduced by 0.47% in 2013.

This is a reduction of 65 lost-time

injuries in 2013.

-16.94%-0.47%

| 4342 |

Protecting employees through transitionsIn2013,weclosedourcoffeefactory

inSafedinnorthernIsrael,after60

yearsofoperation.Fromtheoutset,we

tookadecisiontoensurethatthefifty

peopleemployedatthefactorywould

beprotectedthroughthetransition.In

practice,weprovidedsixmonths'notice

ofthechangetoallemployees,toprovide

employeeswithtimetoconsidertheir

future.Employeeswereofferedalternative

employmentatotherStrausssitesinIsrael,

includingrelocationassistance,and

otherswereofferedgenerousretirement

plans.Attheplantclosure,allemployees

hadbeensuccessfullytransitionedwithno

forcedredundancies.

Employee benefits and compensationWeaimtomaintaincompensationand

benefitsforallouremployeesthatofferfair

andcompetitivepackagesinlinewithlocal

marketnormsinthedifferentlocations

whereweoperate.In2013,aseveryyear,

wemonitorthewayourcompensation

packagesareperforminginlocaleconomic

conditionsaroundtheworldandmake

adjustmentstoensurewestaycompetitive.

Significantprogresswasmadein2013in

helpingouremployeesinStraussIsrael

thinkaheadandplanforretirement.As

aresponsibleemployer,wewantour

employeestoimprovetheirlivesinthe

futurebyplanningaheadinaninformed

andconsideredway.A2012surveybythe

IsraeliCentralBureauofStatisticsshowed

that36percentoftheIsraelipopulation

overage20isnotcoveredbyapension

planandthatofthosethatdohaveaplan,

62percentdonotunderstandthesumthey

willreceiveuponretirementorthewaythat

sumwillbecalculated.

Weaimtoprovideouremployeeswith

thebestretirementplansavailableinthe

Israelimarket.Also,wefeelitisimportant

thatouremployeesunderstandhowto

getthebestresultfromtheirindividual

plansaccordingtotheirownpersonal

circumstances,becauseregulationin

Israelpreventsemployersinfluencinghow

employeesdeterminefutureretirement

planschemes.Therefore,in2013,we

launchedour"PlanningfortheFuture"

initiativetoeducateemployeesabouttheir

retirementprovisionsandprovidethem

withtoolstounderstandthembetter,

monitorthefinancialaspectsoftheplans

Diversity in everything we do Focus Strategic Goals Aspects Indicators

•Productdiversity

•Equalopportunityin

employment

•Supplierdiversityin

procurementpractices

•Advancingwomeninthe

community

•Diversesupplierspend(women-ownedbusinesses)to

reachatleast10%oftotalpurchasingspendby2020.

•Achievearateof50%ofglobalmanagementpositions

heldbywomenbyend2020.

•Offerproductvariantstomeetspecifichealthneeds

(obesity,diabetes,celiac,heartdisease)inourtop10

sellingbrandsby2020.

•Diversityandequal

opportunity

•Equalremunerationfor

womenandmen

•Localcommunities

•Procurementpractices

G4-LA12,

G4-SO1,

G4-EC9,

G4-LA13

Innovation and opportunityDiversityisavaluethatiscentraltothewayweworkandaninclusiveculturebenefitsallthosewetouch.It'snotjustthepeopleinour

organization-diversityisintegratedineveryaspectofourbusinessandsustainabilitystrategy.

Strauss Group: diversity and inclusion

Planning for the future"Afterattendingthe"PlanningfortheFuture"trainingsession,IrealizedIneedtomeet,forthe

firsttimeinmylife,withapensionfundcounselortolearnaboutmyrightsandwhatIcandoto

improvemypensionfundtermsandperformance.Inowhaveanupdated,improvedandmore

costeffectivepolicythatIknowwillbeimportantformeandmyfamilyinthefuture.."

Liat Elron

TrainingandLearningDepartment,StraussIsrael

andtakeownershipforcreatingoptimal

pensionplansavingsforthemselvesand

theirfamilies.ThePlanningfortheFuture

programincludedtrainingsessionsrun

byourhumanresourcesdepartmentand

externalprofessionalssupportedwith

anofferofpersonalmeetingsforeach

employeewithapensioncounselor.At

thesemeetings,employeeswereableto

changetheprovisionsoftheirpension

plansandsavingoptionstobestmeettheir

individualneeds.

1,100employeesacrosssevenStraussIsrael

sitesparticipatedintrainingsessionsand270

employees(25percentofemployeestrained)

completedpersonalcounselingsessions.

Thisprogramcontinuesinordertoreachall

StraussIsraelemployeesbytheendof2014.

CONSUMERS

PRODUCT TO MEET DIFFERENT HEALTH NEEDS

• Accessibility and distribution

• Pack sizes and portion control

• Engaging with diverse consumers

• Respecting different dietary needs

• Local tastes and preferences

• Product variants to meet

health needs

• Respecting different consumer

cultures

COLLEAGUES

ADVANCING WOMEN IN MANAGEMENT

• Recruiting from diverse

backgrounds

• Valuing age and experience

• Development opportunities

for all

• Inclusive culture

• Fair and equal remuneration

• Equal opportunity

CITIZENSHIP

WORKING WITH WOMEN-OWNED BUSINESSES

• Empowering communities

• Respecting the diversity

of the natural environment

• Supporting inclusive community causes

• Understanding local

community needs

• Diverse business partners

• Advancing small businesses

• Investing in women in the community

• Supporting inclusive public policy

| 4544 |

Weaimtoachievepositiveimpactsthrough

adiverseandinclusiveapproachinour

business.However,asdiversityhassuch

abroadscope,wehavechosentofocus

onthreekeyareasthatsupportour2020

sustainabilitystrategy:

•Colleagues:Advancingwomenin

management

•Consumers:Developingmoreproductsto

supportdiversehealthanddietaryneeds

•Citizenship:Advancingsupplierdiversity,

focusingonwomen-ownedbusinesses

andsupportingtheadvancementof

womeninourcommunities.

AccordingtoGallupWorkplaceStudies,

organizationswithinclusiveculturesdo

betterthanthosethatarenotinclusive,

delivering39percenthighercustomer

satisfaction,22percentgreaterproductivity

and27percenthigherprofitability.A

healthyorganizationembracesdiverse

peopleandviewpoints.

Strategy into actionDelivering products for diverse consumer needsWeaimtomakeourproductsaccessible

todiversepopulationsandthisincludes

providingsolutionsforpeoplewithspecific

religious,dietaryorhealthylifestyleneeds.

Weofferproductswhichdonotcontain

gluten,aresuitablefordiabetics,orare

certifiedstrictlykosheraccordingtothe

highestreligiousstandards.Forexample,

in2013,weconvertedourfreshsalads

factoryinKarmieltobeentirelygluten-

freeandalsoremovedglutenfromour

potatochipsbrand,Tapuchips.Inboth

cases,wehavereceivedglutenfree

certificationsandapprovals,thereby

broadeningthenumberofconsumers

thatcanenjoyourproductswhile

makinghealthylifestylechoicesthatare

rightforthem.

Inordertoensureourdiverse

communitiesofconsumersareaware

oftheproductswecreateforthem,we

employdifferentmarketingplatforms

withcampaignsthatmeeteach

populationgroupwherevertheyare,and

speaktothemintheirownlanguage,

respectingtheirvaluesandculture.

Working with the Jewish orthodox

community in Israel

InIsrael,about11percentofconsumers

requirestrictlykoshercertifiedproducts

(Mehadrin),andthiscommunityis

expectedtoreach18percentofthe

populationincomingyears.Straussis

thelargestadvertiserintheorthodox

sectorinIsrael.Advertisingtothe

orthodoxcommunitymustobserve

specificmethodsandlanguage,anduse

radio,billboardsandnewspapersasTV

andinternetadvertisingdoesnotreach

theseconsumers.

In2013,wecertifiedourmaindairy

factoryinIsraelaccordingtothehighest

Mehadrinkosherstandards,requiredby

theOrthodoxJewishcommunity.Infact,

duringthepastthreeyears,wehave

tripledthenumberofproductsavailable

forthoserequiringMehadrincertification

underourMegadimbrand.

Working with the Arab community in Israel

Arabconsumersmakeuponefifthof

consumersinIsrael.AdvertisingtotheArab

communitymusttakeintoaccountthe

specificpreferencesandlanguageofour

Arabconsumers.Weemployaspecialist

marketingagencytoservethiscommunity

andensurewemeettheirneeds.

ArecentmarketinginitiativeforArab

womenwasbasedonthechangingpractice

ofusingchocolateinfamilybaking.Inthe

Arabcommunity,cookeryskillsarepassed

frommotherstodaughters,includingthe

traditionalpreparationofsweetmeatsusing

cocoapowderratherthanchocolate.In

recentyears,Arabwomenareincreasingly

interestedinexpandingtheirhorizonsand

consideringotherwaysofpreparingfood.

SalmaFiyumifromtheArabcommunityin

Israelwasafinalistinthepopulartelevision

show,MasterChefIsrael.Weengaged

SalmatoshowArabwomenhowusing

chocolateinsteadofcocoapowdercan

upgradetheircakesandhowadopting

newcookingstylescanrefreshandeven

improvetheirtraditionalcuisine.The

marketinginitiativeusedamoderndigital

platforminlinewiththeArabcommunity

preferenceforonlinecontentrather

thantelevision,andincludedamini-site

withshortcookeryvideoswithSalmaand

recipesharingamongusers.Thecampaign

broughttensofthousandsofviewsforthe

videorecipes,andhundredsofwomen

sharedtheirrecipesduringthecampaign.

Equal opportunity in employmentAtStraussGroup,wemaintainaninclusive

culturewhichwelcomesemployeesfrom

allbackgroundsandencouragediversity.

Aparticularareaoffocusisensuringthat

womenhaveequalopportunitytojoinour

company,andadvancetothehighestlevels.

Webelievethishasanimportantsocialand

economiccontributionaswellashelpingus

manageourbusinessmoreeffectively.

Food Trends"Whileremainingtruetotraditional

valuesandpractices,theArabcommunity

isbecomingmoremoderninoutlook,

seekinginnovationandnewexperiences."

Fadoul Mazzawi

CEOMazzawiAdvertising

| 4746 |

In2012,welaunchedagroup-wide

programwithavisionarygoalofreaching

genderbalanceinourmanagementlevels

withatargetof50percentwomenin

managementby2015.Wecreatedan

infrastructureforimplementingprocesses

foraninclusiveworkplace,withan

emphasisonwomen.Theseincludesetting

goalsandtargets,establishingsteering

teamsandraisingawarenessamongall

managersandemployeesineachofthefive

companiesthatformStraussGroup.Gender

equalityperformanceisalsoreflectedin

seniormanagementcompensation.We

maintainedoureffortsin2013.

Someofthespecificareasweare

addressingincludeensuringthe

inclusionofwomeninourhighpotential

managementdevelopmentprogram

andexaminingourworkprocesseswith

externalrecruitmentagenciestoapply

principlesforeffectiverecruitmentof

women.Alsoin2013,weanalyzedournew

hires,promotionsandexitswithanaim

toestablishcorrelationbetweengender,

seniorityandotheraspectsrelatingto

women'sdevelopmentinStraussGroup.

Thisanalysishelpsusidentifyopportunities

toimprovegenderbalance.

Inthemeantime,wearemakingprogress,

withwomenrepresenting41percentof

ourglobalworkforceand39percentofour

managementranksin2013.

Strauss Water: a diverseemployment opportunityIn2013,StraussWaterestablishedanew

callcentertohandleincreasingcustomer

supportdemandsaspartofagrowing

business.Anopportunitytocreate

employmentforasectionofthepopulation

thathasbeenunderrepresentedinIsraeli

workplaceswasidentified.StraussWater

engagedadedicatedunitoftheManpower

Bereshitorganizationthatprovides

outsourcedcallcenterservices,employing

womenfromtheorthodoxJewish

communityinIsrael.Orthodoxwomen

areunder-representedintheworkforce.

Recentdataindicatesthat62percentof

orthodoxwomenareemployed,compared

withover80percentofwomeninthe

generalpopulation.Theorthodoxreligious

frameworkmeansthatuniqueneedsmust

beaddressedtoaccommodatereligious

andlifestylechoicesoftheorthodox

community.Beingresponsivetotheneeds

oforthodoxwomen,wegainthebenefitsof

ourinclusiveapproach.Ouroutsourcedcall

centernowemploys65women,responds

tomorethan2,000customerquerieseach

dayanddeliversa91percentsatisfaction

ratebasedonacustomersurveyinJanuary

2014.Ourexperienceshowsthatbusiness

needscanbeinperfectalignmentwith

corporateresponsibilitygoals.

Sourcing from women-owned businessesIn2013,weconductedanassessment

coveringover2,500suppliersofStrauss

Israel,withanobjectiveofunderstanding

howwearedoingintermsofprocurement

fromwomen-ownedbusinesses.

Wediscoveredthat9percentofour

suppliersarewomen-owned.Itisour

intentiontoexpandourunderstanding

ofourengagementwithwomen-owned

businessesatagloballevel,notjust

inIsrael,andsignificantlyincreasethe

proportionofourpurchasingspendwith

suchcompanies.

Women-ownedbusinessesareoftenalso

smallbusinesses,andplayasignificant

roleinlocalcommunityintegrationand

empowerment.Supportingwomen-owned

businessescreatesasocio-economicripple

effectthatcreateshealthiercommunities

andimprovesthequalityoflifeformany.

InIsrael,ofthe400,000registeredsmall

andmediumsizedbusinesses,20percent

arewomen-ownedcomparedwith33

percentinEuropeand44percentintheU.S.

Women-ownedisdefinedas51percentor

moreownershipbywomen.

A new product from a woman-owned bakeryIn2013,StraussIsraellaunchedaunique

product,PitaCrunch,anewkindofbaked

pitachips.PitaCrunchistheresultofa

collaborativeeffortbetweenStrauss's

SaltySnacksdivisionandtheOren

MeshiBakerylocatedinthesouthern

peripheryofIsrael.Thecollaboration

beganinJanuary2013whenStrauss

identifiedtheOrenMeshiBakeryasa

potentialpartnerwithexperiencein

producingpitabreadinaspecialprocess

onauniqueproprietaryproductionline.

Thelongtermstrategicpartnershipwe

establishedwithOrenMeshiincludes

collaborativeproductdevelopmentand

knowledgesharing.Sincestartingto

workwithStrauss,OrenMeshiBakery

hasmorethandoubleditsworkforceand

securedbusinessfromnewcustomers.

NB:Seniormanagementrepresentslessthan50managersacrossourglobalGroupwhichisjustover%2oftotalmanagement.

Women in the Strauss Group workforce 2011-2013

women in seniormanagement

women in middlemanagement

women in allmanagement levels

women in our total workforce

Fulfilling work"Asasupervisor,Ienjoyproviding

therepresentativesinmyteamthe

professionalandpersonalsupportthey

need,andhelpthemprovidethebest

servicetocustomers.Thisbringsme

greatsatisfactionandfulfillment."

Hadasa Arviv

Supervisor,

BereshitStraussWatercallcenter

"Straussprovided

knowledgeinbusiness

andproductionprocesses,

helpedusupgradeour

manufacturingand

implementbestpractices

inproductionandquality

assurance."

Eti Shlomi

owner,OrenMeshiBakery

201320122011

32%33%

25%

39%38%38% 41%43%44%

39%38%37%

48 | | 49

Advancing women and business in our communityInadditiontoadvancingwomenas

employees,andaspartners,wealsosupport

thewomen'sbusinesscommunityandinvest

resourceswheretheyaremostneeded.

Scholarships for the advancement of women in IsraelIn2012,StraussGroupestablished

ascholarshipprogramfortheadvancement

ofwomeninIsraelinhonorofHildaStrauss,

founderofStraussGroup.Theprogram

supportswomeninIsrael,especiallythose

fromexcludedandminoritygroups.The

scholarshipsprovidehighereducation,

empoweringwomentobecomeleadersin

theircommunities.In2013,StraussGroup

grantedhighereducationscholarships

forthesecondyear,awarding$26,000

to16youngwomenfromtheEthiopian,

BedouinandJewishorthodoxcommunities.

Mostscholarshiprecipientsarethefirstor

onlyonesintheirfamiliestopursuean

academicdegree,soourscholarshipshavethe

potentialtoimprovetheirlivesconsiderably.

The Jasmine Forum for women business ownersIn2013,welaunchedtheJasmineForum

forwomenbusinessownersthatprovides

opportunitiestolearnfromtheknowledge

andexperienceofwomenwholeadglobally

successfulbusinesses.TheForumorganizes

meetingsformemberstomeetwomen

businessleadersfromaroundtheworld,

whilecreatingalocalcommunityofwomen

businessownerstosupporteachotherin

differentways.StraussGrouphaspartnered

withJasmine,theAssociationofBusiness

WomeninIsrael,topromotewomen's

entrepreneurshipandtohelprealizethe

economicpotentialofJewishandArab

businesswomeninIsrael.OfraStrauss,

StraussGroupChairperson,servesasthe

PresidentofJasmine.

Catalyst partnersWecontinuetopromotegenderdiversity

throughourpartnershipwithCatalyst.

CatalystisaleadingU.S.-basednon-profit

organizationwithamissiontoexpand

opportunitiesforwomenandbusiness.

Catalyst'sCensusPartnersaroundtheworld

worktotracktherepresentationofwomen

onboardsandseniormanagementusing

CatalystCensusmethodology.Strauss

GroupandtheIsraelWomen'sNetwork

havebeenCatalyst'sCensusPartnersin

Israelsince2010.In2013,weconducted

thecensusforthefourthtime,providing

onceagainanup-to-dateviewofwomen

inseniormanagementandleadership

positionsinpubliccompaniestradedinthe

TelAviv100(TA-100)indexoftheTelAviv

StockExchange.

Decrease in the number

of women CEOs to 7.5%

(7.9% in 2012).

Decrease in women

executives in publicly

traded companies to 31%

(34% in 2012).

Decrease in women holding

chair positions in publicly

traded companies to 2%

(3% in 2012).

7.5%31% 2%

Women in business in Israel

Chairpersons of the board - TA100-

CEOs - TA100-

Women board members - TA100-

Women top executives - TA100-

Women in executive positions in the workforce

Women in the workforce in the workforce

7.5%(7.9%)

17.2%(16.6%)

19%(20%)

31%(34%)

47%(47%)

2%(3%)

Census pyramid* - women's status in the workforce in Israel 2013 compared to 2012 (figures in parentheses)

*ThedataonthepercentageofwomenintheworkforcearefromtheCentralStatisticsBureau2013Annual-Table12.20-EmployeesbyStatusatWorkandGender.

ThedataonthepercentageofwomeninmanagementpositionsarefromtheCentralStatisticsBureau2013Annual-Table12.18-EmployeesbyProfession,PopulationGroupandGender.

The2013censusdemonstrates

thattheIsraelibusinesssector

hasstillnotfullyembracedthe

benefitsofadvancingwomen

inmanagementpositions.This

isunfortunatebecause,as

researchhasshown,correlations

canbemadebetweenwomenin

seniorleadershippositionsand

economicgrowth.InIsrael,we

havemoreworktodo!

Source:CatalystIsraelCensus,2013

| 5150 |

Managing social and environmental risk in our supply chainMaintaininganethicalsupplychainis

importantforourbusinessandforour

stakeholdersbecauseitenablesusto

maintainbusinesscontinuityandmitigate

potentialsocialandenvironmentalrisk,

andalso,drivenbyresponsibility,ithelps

usaddressstakeholderconcernsrelating

tohumanrightsandenvironmental

stewardship.Inatransparentworld,

theactionswetakethroughoutour

supplychainareunderscrutinybyour

stakeholders,includingconsumers

thatexpectustoadheretoethicaland

responsiblebusinessstandards.Sourcing

ingredientsfromarangeofsuppliers

throughouttheworld,wemustensurewe

areabletoreassureourstakeholdersthat

sustainablestandardsareupheld.

Strategy into actionOurglobalsupplychainiscomprisedof

roughly13,860suppliersthatsupplygoods

andservicestoavalueofalmost$2billion.

Weaimtomaintainlong-termmutually

beneficialrelationshipswithkeysuppliers,

andvaluetheeffortstheymaketosupport

ourbusiness.Wherepossible,weengage

withlocalsuppliers.Thisoftenmakes

economicsenseandstrengthenslocal

economicdevelopment,whileencouraging

diversityinoursupplychain,astrategic

elementofourcorporateresponsibility

approach.In2013,52percentofourtotal

purchasingexpenditurewasforgoodsand

servicespurchasedlocally.

Supplier commitmentto sustainability Beyondtheusualtriangleofquality,price

andservice,weexpectoursuppliersto

upholdourvaluesandcomplywithour

SocialCharter.Developedin2011for

StraussIsrael,thisCharteraskssuppliersto

adoptthesamehighstandardsofcorporate

responsibilityasStraussGroup.Signature

ofourSocialCharterisaconditionofdoing

businessforallnewsuppliers.In2013,44

percentofsuppliersinIsraelhavesigned

theCharterandthisincludesallnew

suppliersbetween2011and2013.Also,

in2013,weupdatedourSupplierCharter

toreflectastrongercommitmentfrom

suppliers,includingacommitmentto

reportethicalbreachestotheStraussEthics

Officerorhotline.

In2013,wecontinuedtheimplementation

ofourSupplierEvaluationProgram,

developedin2012.Theprocessinvolves

afullassessmentofindividualsupplier's

operationsincludingquality,pricing,cost-

effectiveness,logistics,transparency,and

innovation,andprovidingfeedbacktothe

supplierwhileworkingtogethertoimprove

supplychainefficiencyandreliabilityin

constantlychangingconditions.During

2013,weassessed40suppliers.

Sustainable sourcing of key ingredients

Coffee

StraussCoffeeBVbecameamemberof

the4CCoffeeAssociationin2007,

followedbyourJVinBrazil,TresCoraçoes,

in2010.Sincethebeginningofthis

membership,StraussCoffeehaspurchased

17,000tonsof4Cverifiedcoffee.In2013,

morethan6percentofthetotalcoffee

procurementforourEuropeanandIsraeli

factorieswassustainablecoffeeverifiedby

the4CAssociation.

The4CAssociationisamulti-stakeholder

organizationcommittedtoaddressing

sustainabilityissuesinthecoffeesector.

4CmaintainsaCodeofConductwhich

providesbaselinestandardsforsustainable

purchasingandproduction.Keypillarsof

thecodeare,amongstothers,elimination

oftheworstformofchildlaborandslavery,

implementationofgoodagricultural

practices,supportforeconomicsuccessas

wellasequalrightswithrespecttogender

andeducation.

Ethical supply chain Focus Strategic Goals Aspects Indicators

•Sourcingofsustainableproducts

•Suppliercommitmenttosustainability

•Increasesustainablesourcingoftop5globalfood

ingredientsby15%byend2020(2012baseline).

•Procurement

practices

FP1,FP2

Percentage of procurement budget spent on local suppliers in 2013

52%Total

98%Brazil

78%U.S.

65%Israel

19%

Europe

52 | | 53

Cocoa

In2013,wefurtherstrengthenedour

collaborationwithBarryCallebaut,along-

standingsupplierofcocoatoStraussIsrael,

bycommittingtoalongtermsourcingof

mostofourcocoarequirements.

BarryCallebautistheworld’sleading

manufacturerofhigh-qualitychocolate

andcocoaproductsandiscommittedtoa

sustainablecocoaproduction.Oursourcing

agreementwithBarryCallebautincludes

aprogramforknowledgesharingand

developmentofcollaborationplatforms,

includinghelpingStraussGroupbuild

ourknowledgeofdifferentaspectsof

sustainablesupplyandinnovation.

Max Brenner: supporting cocoa farmers

MaxBrenner,ourpremiumchocolate

brand,alsosourcescocoathroughBarry

Callebaut,and50percentofMaxBrenner's

cocoasupplyisprocuredthroughtheBarry

CallebautQualityPartnerProgram(QPP).

TheQPPwaslaunchedin2005intheIvory

Coast,andtodayworkswithmorethan

60cooperativesrepresentingover30,000

cocoafarmersinthecountry.QPPsupports

cooperativesintheireffortstoservethe

needsoftheircocoafarmermembers.

Farmerfieldschoolsareusedtohelptrain

themoderncocoafarmerforincreased

productivityandimprovedqualityofcocoa.

OtherintegratedactivitiesoftheQPPinclude

improvingaccesstoeducation,healthcare

andcleanwater.In2013,MaxBrenner

purchased11tonsofQPPcocoausedintwo

chocolateproducts,andin2014,willlaunch

threenewbarsmadefromQPPcocoa.

AnotherinitiativeofMaxBrennerinthe

formofsustainablesourcingissupport

providedtotheBiolandscocoaprogram.In

2013,wepurchasedfourtonsofchocolate

madefromBiolandscocoaandlaunched

ourCocoaMaxChocolateTablet,a100g

darkchocolatebarthatisalsoorganicand

fairtradecertified.Thetabletisrichintaste,

helpsbuildabetterworldthrougheducation,

issustainablysourced,andenablesimproved

qualityoflifeforfarmersandtheirfamilies.A

$0.50donationfromthesaleofeachbargoes

tosupportschoolchildreninTanzania.The

fundspurchasemuch-neededschoolbooks

andsupportthebuildingandmaintenance

ofschoolfacilitiestoensuresafeand

cleanlearningenvironments.Injustthree

monthsafterlaunch,wesoldover2,300bars

generatingmorethan$1,100indonations.

TherawcocoaforCocoaMaxisharvested

fromtheBiolandsprojectinTanzania,owned

byBarryCallebaut.Biolandsisoneofthe

largestorganicsmallholdercocoaprograms

intheworldandranksasAfrica’slargest

exporterofcertifiedorganiccocoa.Biolands

worksdirectlywithsmallholderfarmersto

ensurefairpricesarepaidtothefarmers

andtoimprovethequalityofcocoaandthe

farmers’qualityoflife.AllBiolandscocoais

certifiedorganicbyIMO,theSwissInstitute

forMarketEcology.

Strauss Israel: working with farmers

Wemaintainclosecollaborationwithour

agriculturalsuppliersinIsraeltoensure

webringourconsumersthebestpossible

freshproduce,grownandsupplied

alongsustainableprinciples.Wework

withoverthirtygrowersthatsupplyus

withvegetablesforourfreshpackaged

vegetablesrangeandourvegetable-based

chilledspreads.Threeyearsago,westarted

localpurchasingoftheagriculturalraw

materialsthatweregularlyuse,including

chickpeas,eggplants,bellpeppers,squash,

beetroot,cabbage,carrots,onions,garlic,

andherbs.Tofurtherimprovethequality

ofourproduce,webegantoworkdirectly

withgrowersinIsrael,ratherthanwith

wholesalers,implementingnewstandards

andefficient,sustainablewaysofworking.

In2013,wesignificantlyexpandedthe

rangeofchilledsaladsweofferunderour

Achlabrand,includingnewvegetable

optionssuchaszucchiniandbeetroot,

allgrownlocallybyourpartnerfarmers.

Currentlyweofferarangeof45different

saladsandhummus-basedspreadsunder

theAchlabrand,whichprovidehealthy

choicesforthe1.4millionconsumers

thatchoosetheseproductstosupport

theirhealthylifestyleseverysingleday.To

supportourexpandingrangeandvolume,

in2013,weexpandedournetworkof

partnergrowers.

Tobettersupportourongoingdemand,

weintroducedathirdvariantofchickpea

inadditiontothetwovariantswehave

usedtodate.Weselectthevariantsweuse

basedontheirrobustnessagainstdisease

andthereliablevaluetheybringtoour

growers.Introducinganewvariantmeans

adaptingourhummusproductionprocess

toaccommodateslightdifferencesbetween

variants.However,ourthirdvarianthelps

protectourconsumers,andourgrowers,

frommarketdisruptionduetodifferent

weatherconditionsandotherfarming

variables.

Maintaining continuity of supply

Anexampleofsuchanissuecouldhave

seriouslyaffectedourlettucesupplyin2013.

InDecember,Israelexperiencedfivedaysof

extremeweatherconditions,withstrongwinds,

lowtemperatures,andfourtimestheaverage

rainfallfortheentiremonthofDecemberin

justfivedays.Anestimated50percentof

agricultureproduceinthecenterofIsrael

alonewasaffected,causingover$14million

inlossestoaround2,000farms.Intheregion

whereStraussIsraelsourceslettuce,almost90

percentoflettucecropsweredamagedfrom

thestormorduetodelaysintransportation

systems.Oursupportforgrowersthroughthis

periodbyhelpingthemharvestanddistribute

salvagedlettucetodifferentbuyerswascritical

forthemtomaintainbusinesscontinuity.Also,

duringthisperiod,ourconsumerswereableto

continuetoenjoyourfreshsaladproducewith

almostnodisruption.

We began to work directly with growers in Israel, implementing new standards and efficient, sustainable ways of working.

54 | | 55

Supporting our distributorsStraussIsraelmaintainsanetworkof265

independentandexclusivedistributorsthat

ensureourproductsreachourconsumers

inmorethan24,000supplyinteractions

everysingleweek.Ourdistributorsarea

keyarmofourextendedsupplychain,and

althoughindependent,theyworkwith

StraussIsraelonalong-termbasis,which

generallyspansmorethan15years.One

distributorhasworkedwithStraussIsrael

forfortyyearsandcontinuestomakea

strongcontribution.In2013,werecruited

fivedistributorsfromtheArabcommunity

asapartofamulti-yearprogramaimed

atdiversifyingourdistributorbaseand

makingourproductsaccessibletomore

consumers.Weholdanannualdistributor

conferenceandrecognizethosethatmade

anoutstandingcontributioneachyear.

Ourcloserelationshipwithourdistributors

isreflectedinahighleveloftransparency,

commitment,involvementandongoing

dialogue.Werecognizethatourdistributors

areoftentheonlyfacesofStraussthat

ourcustomerssee,soitisimportantfor

ustoensurethatweunderstandwhatis

importanttothem.Everytwoyears,we

conductaformalsurveytoobtaintheir

feedbackandunderstandtheleveloftheir

satisfactionwithStraussIsraelandthe

relationshipwithoursalesteam.In2013,

97percentofdistributorsparticipatedin

oursurveyandtheaveragesatisfactionrate

was7.37(outof10),adecreaserelativeto

thelastsurvey.Opportunitiestoimprove

thatwerenotedbyourdistributorsinclude

efficiencyoflogisticsproceduresandservice

providedbysalesanddistributionteamsat

Strauss,andthewayfinancialcompensation

islinkedtodistributorperformance.

Asaresult,wearecurrentlyimplementing

improvementsintheseareas.

Innovating with small businessesIn2013,weengagedwithasmallenterprisetodevelop

anewproduct,miniricecakes,inajointprogramwith

asharedinvestment.PerachIndustriesisafactory

employing40peoplethathassuppliedStraussIsraelwith

ricecakesforthepastsixyears.In2013,weenteredinto

ajointdevelopmentofflavoredricecakessnackstooffer

consumersahealthyalternativeforsnacking,withportion-

controlledpacksof100calorieseach.PerachIndustries

investedinnewtechnologyforanewproductionlineto

manufactureminiricecakes,andweworkedwiththe

Perachteamtodevelopauniqueprocesstodeliverthisnew

product.Followingasuccessfullaunch,PerachIndustries

enjoyedbusinessexpansionandwewereabletoprovide

moreproductalternativesforourconsumers.

| 5756 |

Preserve the planetReducingresourceconsumptionandwasteisapriority

sustainabilityissuebecausewesharetheburdenofresponsibility

withotherorganizationsandindividualstoleavetheplanetin

aconditionwhichisfitforongoingprosperityandqualityoflife

forfuturegenerations.Thereisnodoubtthatclimatechange

andweatherextremes,dwindlingresources,deforestation,soil

erosion,waterscarcity,overstuffedlandfillsandairpollution,are

allpartofthesameoverridingthreattoourlong-termprosperity.

Asacorporatecitizendrivenbyresponsibility,wemustdoall

wecantoensureweuseonlywhatweneed,operateefficiently,

manageoursupplychainwithaccountabilityandminimize

negativeimpactsonsocietyandtheplanet.Ourapproachis

basedontheprecautionaryprincipleofanalyzingenvironmental

risksinourvaluechainandputtinginplacespecificactionsacross

ourcompaniestoensurewemitigatetheserisks.

Wecontinuetoinvestinimprovingourenvironmental

managementinfrastructureandhaveincreasedourglobal

environmentalinvestmentsoverthepastfouryears,reachinga

totalofmorethan$21million.

Strategy to actionFood technology innovation through our Alpha Strauss initiativeTechnologyandinnovationiscriticalto

improvingtheefficiencyofourvaluechain.

Insomecases,innovationwillleadusto

developentirelynewproducts,whichoffer

breakthroughadvantagesinconsumer

experienceandothertangibleconsumer

benefit.Inothercases,productand

processenhancementsachievedthrough

technologyinnovationwillbringnewways

ofmaterialconsumption,manufacturing,

logistics,packaging,shelf-lifestabilityand

more,whichcanmakeourentirevaluechain

moreefficientandhelpconserveresources.

Technologyisakeytohealthychoicesfor

ourbusinessandforourconsumers.

FollowingthelaunchofAlphaStrausslast

year,wecontinuedtodiscoverandinvest

intechnologiesforgreaterefficiencies

inenergyconsumption,wastewater,

andpackaging.Wealsoformednew

Reducing resource consumption and wasteFocus Strategic Goals Aspects Indicators

•Technologyandinnovation

•Operationalexcellence

•Reduceenergy,emissions

andwaterconsumption

•Reducewasteandincrease

recycling

•Engagingemployeesin

environmentalstewardship

•Operationalizeatleastthreesignificantinnovative

producttechnologiesthatimprovesustainable

andhealthylifestylechoicesby2020.

•Reduceconsumptionofenergy,waterand

packagingmaterialsby15%pertonofproductby

end2020.

•Reducegreenhousegasemissionspertonof

productby15%byend2020(2012baseline).

•Increase%ofrecycledwastefromtotalwasteby

15%by2020.

•Materials

•Energy

•Water

•Emissions

•Effluentsandwaste

•Productsandservices

G4-EN1

G4-EN3

G4-EN5

G4-EN8

G4-EN15

G4-EN16

G4-EN18

G4-EN20

G4-EN21

G4-EN22

G4-EN23

G4-EN31

Alpha StraussWelaunchedAlphaStraussin2012withavisiontoacceleratethe

developmentoftheIsraeliFoodTechCommunity.AlphaStraussisthe

communitywecreatedforinventors,entrepreneurs,nutritionspecialists

andfoodscientistsinIsrael.Weencouragethemtocometogethertosolve

keyfoodindustrychallengesbyusingandleveragingthelocalstart-up

communitywithitsinnovativemindsandaffinityfordisruptivechange.

ThecommunityisnurturedbyStrauss,andwesupportinnovatorsthrough

knowledgesharing,financialsupportforfeasibilityassessments,accessto

equipment,researchandbusinessdevelopmentguidance.

Since 2012, our Alpha Strauss team has screened over 500 technologies, 40 are under evaluation process, 20 are in development, and 4 technologies are close to operationalization.

partnershipswithstart-upcompanies

andresearchfacilities.Throughthese

partnerships,wearegettingcloserto

operationalizingnewtechnologiesforthe

benefitoftheentirefoodindustryandits

consumers.Internally,wehavenominated

32AlphaAgentsasspecialistresourcesin

ourcompanythatareavailabletosupport

andprogressinnovativeideas.Wehosted

oursecondAlphaStraussconferencewith

participationof150entrepreneursand

representativesofinvestmentfundsand

governmentofficials.

| 5958 |

Alpha Strauss innovation biodegradable packagingOnecurrentexampleofapotentially

successfulinnovationsupportedby

AlphaStraussisanewformofflexible

biodegradablepackagingforfoodproducts.

During2013,wecollaboratedwiththeIsraeli

woman-ownedstart-upcompany,Tipa

Corp.tohelpdevelopaflexiblepackaging

product.Developingrecyclablepackaging

optionshasbeenachallengeforthe

industryandinmanycases,suchasflexible

packsforsaltysnacks,noviablesolutionhas

beenachieved.Ingeneral,only5percentof

saltysnackpackagestendtoberecycled.

WithTipa,wehopetorevolutionizethe

sustainablepackaginglandscape.

TipaCorpdevelopedauniquemulti-

layeredbiodegradablefilmintendedforthe

manufactureofflexiblefoodandbeverage

packaging.Packagingmaterialsbasedon

theTipafilmarefullybio-degradablein180

days,afterindustrialcomposting.Strauss

andTipaarecurrentlycollaboratingon

testingandmatchingthistechnologyto

packsofsaltysnacks,pilotingtheprocess

inoursaltysnacksplantinIsraeltoproduce

thefirstcommercialscalerunofsalty

snacksinbiodegradablepackagingbyTipa.

Weexpecttobereadytogotomarketby

2015.Tipa'stechnologyandpotentialhas

alreadyattractedmuchattentionand,in

early2014,Tipawassuccessfulinsecuring

fundingof$10millionfromanewinvestor.

Wearepleasedthatthesupportprovided

byAlphaStrausswasabletocontributeto

thissignificantprogress.

Alpha Strauss innovation -wastewater treatmentAnotheruniqueinnovationiscurrently

beingpilotedthroughtheAlphaStrauss

community.In2013,StraussIsrael

collaboratedwithastart-upinwastewater

technology,AMTRScientificLtd.topilot

aninnovativewastewatertreatment

device.Ourpilotprogramusedasmall

mobiletreatmentdevicetotestthe

technologyonsmallamountsofwater.

Thedeviceistransferrablebetweenour

plantsinIsraelanditseffectivenesscan

thereforebeeasilytestedondifferent

wastewatertypes.In2013,thefirstpilot

inoursaladsplantinKarmielgavegood

results,reducingsuspendedsolidsandCOD

(chemicaloxygendemand,aneffective

measureofwaterquality)waybelow

regulatorylimit.Thishastypicallynotbeen

possibleinstandardwastewatertreatment

technologies.Weplantoexpandtestingto

moreplantsin2014.

Alpha Strauss MassChallengeIn2013,ourAlphaStraussteamand

MassChallengepartneredtolaunch

afood-focusedacceleratorprogram

basedinIsrael.Theprogram,drawingon

ourfoodtechnologyexpertiseandthe

provenexperienceofMassChallengein

nurturingyoungcompaniesandideas,

acceptsentrepreneursfromaroundthe

worldwithfood-techrelatedideasor

start-upcompanies.Inpartnershipwith

MassChallenge,wewillestablishafood-

techCenterofExcellenceinIsrael,led

byAlphaStrauss.Thecenterwillhelp

entrepreneursparticipateintheglobal

MassChallengeprogramintheU.S.,with

anaimtoattractmoreentrepreneursand

technologiesandhelppositionIsraelasa

powerhouseinfoodtechnologywithglobal

reach.Thiscollaborationprovidesanother

platformfortheAlphacommunityof

entrepreneurstodeveloptheirtechnologies

andbringthemclosertomarket.

MassChallengeMassChallenge(U.S.)istheworld'slargestacceleratorforstartups,holdinganannual

technologycompetitionforthousandsofstartupsfromaroundtheworld.Accelerators

helpentrepreneursorearly-stagestart-upslaunchfull-fledgedbusinessesmorequickly

thantheywouldwithoutoutsideassistance.Helpisprovidedintheformofaccessto

advisoryresources,potentialcustomers,regulatorsandfunding.

Since 2010, the 489 start-ups accelerated by MassChallenge have raised over $472 million in funding, generated $194 million in revenue and created 3,928 jobs.

"Thisisanopportunitytotestour

productinthefield.Receiving

feedbackfromtheindustryiscrucial

forthesuccessoftheproductand

toourgrowthasacompany.Strauss

supportsusbyprovidingaccessto

theirfactoryforconductingproduct

trials,andreceivingthefeedback

weneedtoimproveourproductand

bringittomarket."

Daphna Nissenbaum

CEO,TipaCorpLtd.

In 2013, our Alpha Strauss team and MassChallenge partnered to launch a food-focused accelerator program based in Israel.

| 6160 |

Operational excellenceIn2013,withinthecontextofourmulti-

yearOperationalExcellenceprogram,which

embracescontinuousimprovementin

manypartsofoursupplychainactivities,

weplacedahighfocusonautomationof

processestocreategreaterefficiencies,

productionconsistencyandimproved

precisionandquality.Additionally,

automationremovesmuchoftheheavy

manualwork,suchaslifting,whichhelps

reduceriskofworkplaceinjury.Sincelast

year,wehavemappedourentireoperations

inIsraeltoidentifyautomationefficiency

opportunitiesandadoptedafive-year

planforimplementation.In2013,we

implementedseveralprogramsindifferent

facilitiestoaddend-of-linerobotsto

replacemanualliftingofproductcartons

topalletsandforpallettransportation

withinwarehouses.Anotherexampleis

automatedremovalofproductsthatdonot

meetqualitystandardsfrompackinglines,

improvingaccuracyandoverallproduct

qualitylevels.

Excellence in AustraliaIn2013,weexpandedourObelamanufacturing

operationstoAustralia,establishinga

manufacturingplanttodeliveravarietyof

premiumspreadsanddips,includinghummus-

basedspreadsindifferentflavorssuchasroasted

capsicum,zestyjalapenoandsavorygarlic.Our

operationsinObelaAustralianowemploy70

people.Weestablishedourmanufacturing

operationsinaccordancewiththesamehigh

operationalexcellencestandardsthatweexpect

fromourplantsallaroundtheworld.Inthefirst

yearofoperation,Obelaachievedimpressive

energyandemissionsefficiencies. Managing energy, emissions, water and wasteWecontinuetodriveoperational

efficienciesandidentify

opportunitiestoimproveour

environmentalimpactsthrough

adoptingnewtechnologies

anddifferentwaysofworking.

Throughoutourdifferentfacilities

aroundtheworld,ourmanufacturing

operationsseektooptimize

productionprocessesthrough

identifyingareasofopportunityto

usefeweroftheplanet'sresources

anddivertmorewastefromlandfill

throughrecycling.Operational Excellence is a program launched in 2009 in Strauss Israel. It includes:

• Culture of excellence• Empowering employees• Improving production metrics• Improving quality

• Streamlining operations• Lean production• Reduced resource consumption• Reduced waste• Consistent work processes• Collaboration between business units• Shared best practices• Consistent measures and metrics

Operational Excellence

Energy consumption per ton of product

GHG emissions per ton of production

Water consumption per ton of product

3.702.01

0.320.11

3.547.53Obela

2013

Strauss Group all operations

Energy intensityGJ/ton of production

Water intensitym3/ton of production

GHG emissionsintensitytons CO2e/ton of production

Change from 2012

-4%0.36 0.35-6%5.97 5.62

-9%2.97 2.692012Karmiel Salads

factory 2013

Thiswasachievedthroughdetailedattentionto

allaspectsofresourceconsumptionateverystage

ofthefactoryoperation.Annualimprovement

targetsinthefactoryareestablishedbythenine-

memberfactorymanagementteam,andresources

areassignedforimplementationofagreedplans.

Actualconsumptionismonitoredinreal-time,

enablingfactorymanagers(andalloperators

inthefactory)toseeexactlyhowthefactoryis

performingandidentifyproblemsastheyoccur,

andtakeimmediatecorrectiveaction.Progressis

reportedweeklytoallfactoryemployees.

In2013,oneprojectreducedenergyconsumption

througharecalibrationofairandcooling

compressorcontrolsystemstoattainmaximum

energyefficiency.Furtherenergysavingswere

achievedbyturningoffnon-essentialsystems

attheweekend.Forexample,wechangedthe

settingsofouricemakingsystemwhichnormally

worksthroughthenight,tostopduringthe

weekendwhilethefactoryisnotinproduction.

Watersavingswereachievedin2013through

acombinationofequipmentupgradesand

processimprovements.Filtersonthevegetables

washingsystemwerechangedtoahigherquality

alternativetoavoidblockage,andimprovements

weremadetopeelingprocessestoreducewater

consumption.

Focused improvements at Karmiel factoryInourfreshsaladsfactoryinKarmielinIsraelforexample,weachievedimpressiveresultsin2013:

| 6362 |

Group energy, emissions, water and waste performance in 2013

Overall,ourenvironmentalresultsin2013

donotfullyreflectsimilarpositiveinitiatives

atStraussplantsaroundtheworld,with

anincreaseinenergy,emissions,water

andwastelevelsonagroup-wideabsolute

basis.Werecordoverallimpactsthrough

ourfactorieseachyear–wedonotcorrect

retroactivelyforadditionoffactories.In

2013,weaddedthreesitesinEuropeto

ouroveralloperationsanddatacollection

thatcontributed11.5%increaseinoverall

energyconsumption,whichrepresents

mostofourtotalincreasethatyear.Similar

effectswerenotedacrossothermetrics.In

addition,oneofthefactoriesemploysan

unavoidablyresource-intensiveprocessfor

themanufactureoffreeze-driedinstant

coffee,havinglittleeffectonproduction

volumes,withjust2%ofoverallannual

tonsproduced,butafarmoresignificant

effectonenergyconsumption,emissions

andwaste,contributing10percent,7.5

percentand13percentrespectivelytothese

environmentalimpacts.Thishadtheeffect

ofmakingouroverallefficiencylevelsappear

worsein2013.Weareworkingtoimprove

thisposition.

Additional environmental initiatives in 2013Strauss Coffee: carbon footprint analysis

In2013,StraussCoffeeundertookacarbon

footprintassessmentontwoproducts,MKCafé

premium250gpackandChyornayaKartaGold

100gjar,toidentifyopportunitiesforreducing

greenhousegas(GHG)emissions.Carbon

footprintanalysismeasurestheGHGemissions

emitteddirectlyandindirectlythroughthelife

cycleofasingleproduct.Forcoffee,theentire

carbonfootprintincludesemissionsfrom

coffeecultivation,transportationofcoffeeto

productionfacilities,processingandpacking

atproductionfacilities,retaildistribution

ofthefinishedproduct,useofthecoffee

productbyconsumersinthecoffee-making

processinthehome,anddisposalofany

residualcoffeeandpackaging.

Inthisfirstanalysis,welimitedourscopeto

focusonthoseaspectsofthecoffeesupply

chainoverwhichwehavecontrolandcan

reasonablycollectreliabledata.Thisrelatesto

thestagesincludedfromtheportoforiginof

thecoffeetoourfinishedgoodswarehouses.

Itcoversemissionsfromtransportationof

rawmaterialstotheproductionfacilities,

emissionsfromdirectfueluseandelectricity

useattheproductionfacilitiesandemissions

relatedtoproductpackagingincluding

emissionsfromproductionandtransportation

ofthepackaging.

Ourfirststageanalysishelpedusunderstand

thedifferencesinemissionsourcesfor

differentproducts,requiringtailored

solutionsforemissionsreduction.In2014,

basedontheseanalyses,wewillfocuson

reducingGHGemissionsduringthecoffee

roastandgrindingstagesandalsointhearea

ofreducingpackagingmaterialsimpacts.In

thefuture,weintendtoexploreadditional

aspectsofthesupplychain,includingcoffee

cultivationandconsumerusephases.

Strauss Water:reducing energy consumptionWeaimtominimizetheenvironmental

impactofourWaterBarsthroughouttheir

lifecycle,andin2013,weweredelightedto

confirmcomplianceofallourWaterBar

modelswiththeEnergyStarcertification

program.EnergyStarisavoluntary

labelingprogramdesignedtoidentifyand

promoteenergy-efficientproducts.Itisa

jointprogramoftheU.S.Environmental

ProtectionAgency(EPA)andtheU.S.

DepartmentofEnergy.EnergyStar

certificationisawayofconfirmingtoour

consumersthattheyhaveselectedone

ofthemostenergy-efficientappliances

available,bothsavingmoneyinenergy

intheirhomeswhilesupportingthe

sustainabilityofourplanet.

Inaddition,atStraussWater,wehave

beenimprovingtheenvironmental

impactsofourpackaging,replacing

laminatedfilterpackswithcardboard,

alongwithotherinitiatives.

Total energy consumption increased by 15% in 2013 group-wide. On a relative basis, per ton of product, this increase was 9%.

Total water consumption increased by 14% in 2013 group-wide. On a relative basis, per ton of product, this increase was 8%.

Total greenhouse gas emissions increased by 1% in 2013 group-wide. On a relative basis, per ton of product, this decreased by 1%.

| 6564 |

Max Brenner:green disposable coffee cupsIn2013,MaxBrennerlaunched"FastMax",

alineofdisposabletakeawaypackaging

thatisenvironmentallyfriendly.Onecup

consumedperdaygeneratesaround10

kilogramsofwastepackagingeveryyear.

Aswesellmorethan600cupsperday,the

potentialforlandfillavoidanceisover6

tonsperyear.

TheFastMaxlineincludesplastic

cupsandlidsmadeentirelyfrom

plantsources,certified100percentof

wastecompostablebytheU.S.-based

BiodegradableProductsInstitute.All

ofourdifferentproductsnowhave

environmentallyfriendlyprofiles–paper

cups,coffeecupsleeves,traysandcookie

bagsaremadewithpost-consumer

recycledcontentandarerecyclable,

compostableandnontoxic.Printinguses

waterorvegetable-basedinks.NowMax

Bennercustomerscanmakepositive

choicesfortheenvironmentastheyenjoy

theirdailycoffeeandcookies.

Strauss Israel:recycling since 2011InIsrael,wecontinuetoinvolveeveryone

inrecyclingthroughourpartnershipwith

theorganizationTerraCycle.Inearly2014,

weexpandedtheprogramtoinclude

Ouremployeesarecriticalambassadors

inourprogramtoreduceenvironmental

impactsandconserveresources.They

playabigroleineveryaspectofour

operationsandhelpensureweadhere

tothebestpossibleenvironmentally

consciouspracticesaswemakeanddeliver

ourproducts.In2013,wewantedtohelp

educateandmotivateouremployeesin

StraussIsraeltodoevenmore,byshowing

themhowtheycanbenefitpersonally

intheirhomes.In2013,welaunched

ouremployeeenvironmentalprogram,

"ThinkGreenandSaveMoney".The

programaimstoprovideemployeeswith

toolstohelpthemsavemoneythrough

reducingelectricityconsumption,waterconsumption,

wasteandincreasingrecycling.Weconductedan

employeesurveyaddressingemployeeconsumption

habitsandenvironmentalbehaviorandprovided

recommendationsforimprovementbasedonthe

surveyresults.The500employeescompletingthe

surveyreceivedafinancialincentivetosupport

environmentalinvestmentintheirownhome.

Engaging employees in environmental stewardship

plasticcontainersandbottlesdiscarded

afterconsumptionofdairyproducts,

collectedinmorethan100locations

aroundthecountry,yieldingmorethan

2,000packagingunitsinjustafewweeks.

Since2011,morethan200,000salty

snackspackswerecollectedthroughthe

participationofschoolsandyouthgroups

inover650collectionpointsaroundthe

country.TheuniqueTerraCyclemodel

connectsrecyclingwithcommunity

involvement,encouragingconsumersto

bringtheirStrausspackagingwasteto

collectionpointsthroughoutthecountry.

Atthesametime,consumersselectasocial

causeandStraussIsraeldonatesalmost

$3foreach200packsrecycled.TerraCycle

repurposesthematerialsreceivedinto

affordable,innovativeproducts.

Engaging stakeholders

Ourstakeholdersincludegroupsorindividualsthatareaffectedby

ourbusinessactivities,whetherdirectlyorindirectly.Stakeholders

alsoaffectthewaywedobusinessthroughthewaytheyengagewith

usasconsumers,employees,businesspartners,customers,health

andnutritionprofessionals,localcommunities,suppliers,regulators,

environmentalassociationsandshareholders.

Weengageinadialoguewithourstakeholdersinordertounderstand

theirexpectationsandconcernsandupdatethemaboutouractivities

andimpactsontheirqualityoflife.Weaimtosupportourstakeholders

inthepursuitofhealthylifestylesbymakingmorehealthychoices

availablethroughourproductsandourdifferentbusinessactivities.

Weengageindifferentways,accordingtotheneedsofdifferent

stakeholdergroups.

Ourapproachtostakeholderengagementhasbeenredefinedto

supporta360degreeperspective.During2013,wedeveloped

aprogramandsupportingtoolstohelpmanagersunderstand

stakeholderinterfacesinallaspectsoftheirinternalandexternal

interactions,andensurethatstakeholderperspectivesaretakeninto

accountatanearlystageacrossdiversedecisionsthataremadeeach

day.In2014,weareprovidingtrainingtomanagersintheuseofthese

newtoolssothatwecanfurtheradaptourpracticestoreflectan

understandingofmultipleneeds.

In2013,werealignedthewayweviewourstakeholdergroupstobe

consistentwithour2020SustainabilityStrategy.Weagainconducted

specificconsultationwithstakeholdersforthepurposeofhelping

todefinethehighestprioritysustainabilityissuesforStraussGroup,

andtogaintheirinputasweprepareourannualsustainabilityreport.

Pleasereadmoreaboutthatinthesection"Determiningourpriority

sustainabilityissues"earlierinthisreport.Onaregularbasis,however,

wemaintainamultitudeofchannelsandformatsforengagingin

dialoguewithourstakeholders.

Stakeholder engagement in action

Our stakeholders

| 6968 |

Our colleagues include all our managers and direct employees, and all contract employees that are engaged in advancing our business activities in all of our companies around the world. Colleagues expect us to provide an empowering, safe and inclusive working environment that enables them to make healthy choices in their work and personal lives. We frequently engage with our colleagues in regular performance discussions, satisfaction surveys, a range of internal communications initiatives and many formal and informal channels so that we can understand their expectations and concerns.

Colleagues

Our consumers, and those that represent their interests, such as nutrition and diet experts, are directly affected by the range, composition, quality and availability of the products we bring to market. Consumers want quality, taste, and variety, so that they can consume our products in ways which support their own choices for healthy lifestyles. They expect us to be transparent about the ingredients we use, and provide responsive service if they have a query or concern. In this group, we also include our retail and wholesale customers that sell our products directly to consumers. We engage with our consumers and customers daily, through our call center, market research, and a wide range of interactions in the marketplace as well as through social media.

Consumers

Stakeholders that represent the citizenship dimension of our sustainability approach are a diverse group with divers interests, expectations and concerns. We engage with each group in accordance with their specific expectations and requirements of Strauss Group. Channels of dialogue include meetings, participation in conferences, working groups, discussion forums, social media and formal communications via our established corporate channels.

Partners

Industry associations

Communitygroups

Environmentalgroups

Suppliers RegulatorsShareownersand investors

Citizenship

Ofra StraussStrauss Group Chairperson•ChairofMaala,BusinessforSocial

Responsibility:Maalaisanot-for-

profitorganizationwhichaims

toadvancesustainablebusiness

practicesinIsrael.Ofracompleteda

threeyeartermasChairattheend

of2013.

•PresidentofJasmine:Jasmine,theAssociationofBusinesswomenin

Israel,wasestablishedtorealizetheeconomicpotentialofJewishand

Arabbusinesswomen.

•ChairoftheIsrael-AmericaChamberofCommerce:TheIACCisa

voluntaryorganizationdedicatedtothepromotionoftradeand

investmentbetweenIsraelandtheU.S.

Gadi LesinStrauss Group Presidentand CEO•MemberofthePrimeMinisterofIsrael’s

RoundTableForum:GadiLesinwas

selectedasoneofelevenmembersof

thiscollaborativeRoundTablewhich

aimstoaddresssocialissuesthrough

collaborationbetweenthepublic,private

andnon-profitsectors.

•ChairmanoftheManufacturers'CounciloftheManufacturers'Associationof

Israel:TheManufacturers’Associationrepresentsallindustrysectorsinthe

localandinternationalmarkets.

•DirectorofShabal(“HealthyTeethforAll”),Israel:Shabalisanon-profit

associationthatprovidesaccesstoaffordableorno-costoralhealthcarefor

underprivilegedindividuals.

Reaching out to consumersThekeytomeetingconsumerneedsis

understandingthem.Throughanintensive

programofmarketresearchandqualitative

andquantitativetools,weareabletoidentify

productinnovationthatwillprovideconsumers

withawidervarietyofhealthychoices,and

opportunitiestoleadhealthierlifestyles.

In2013,wereachedmorethan80,000

consumersinIsraelinmorethan330

specificuniquemarketresearchinitiatives.

Weemployarangeofchannels,including

socialmedia,focusgroups,internetpolling

andtargetedinterviews.Weareconstantly

adoptingthelatesttechnologiesand

advancedmethodologiestohelpdevelop

anevengreaterunderstandingofhow

consumerswanttopursuehealthylifestyles

andotherissuesthatareimportanttothem.

Strong online presenceWemaintainastrongpresenceonlineusing

ourowndigitalassetsandothersocialmedia

platformstoconnectwithourconsumers,

informthemofnewproductsandhear

theirinsights,requestsanddemands.In

2013,wedirectlyinteractedwithhundreds

ofthousandsofconsumersthroughour

differentdigitalchannels.

WemaintainFacebookpages,aTwitter

account,aYouTubeChannel,andan

Instagramaccountalongwithourown

platformssuchasourinformativecorporate

website,ourblog,our“MyStrauss”

communityinitiativeandmore.Throughout

theyear,weusetheseplatformstoengage

consumersindifferentways.Forexample,

in2013,weconductedtenAsktheExpert

eventshostedontheStraussGroupFacebook

page.Theseeventsofferedourconsumers

theopportunitytolearnfromexpertsabout

foodandnutritionrelatedtopics.Also,on

ourFacebookpagewepostacorporate

responsibilityrelatedarticleeveryMonday.

WemaintaingoodrelationswithCRbloggers

andin2013,weparticipatedin#CSRChat,an

onlineTwitterdiscussionlastingonehouron

thesubjectofourlastsustainabilityreport.

Wesupportonlineinteractionthroughour

DigitalMediaInnovationteamthatidentifies

newtechnologyplatformsfordigital

interactionswithconsumers.In2013,we

introducedtwonewplatforms.Trendimon

sharingplatformisnowusedinourMy

Strausswebsite,rewardingconsumerswith

benefitsforsharingcontentonthewebsite

andattractingnewmembers.Roojoomisa

readingtoolthathelpsconsumersinteract

withusefulcontentweprovide,including

recipes,tipsandtricksandmore.

My Strauss websiteMyStraussisawebsitewecreatedespecially

forourconsumersinIsrael,invitingthemto

takepartinourinnovationprocess,providing

feedback,offeringsuggestionsandtrying

outproductsduringthedevelopmentphase.

Attheendof2013,werelaunchedthe"My

Strauss"websitetooffercommunitymembers

improvedvaluewithbiggerdiscounts,new

producttastingandearlyadviceofnew

productlaunches.Sincethesite'slaunchin

2011,over18,000consumershavebecome

members.Theysentusmorethan38,000

ideas,leadingto28productlaunches.

Examples of voluntary governance positions maintained by our leadership are:

Engaging with industry and social organizationsStraussleadershipisactiveinseveralforums,andweparticipateinmanydifferent

groupsandassociationsbothlocallyinIsraelandaroundtheworld.

| 7170 |

What consumers need"Ourconsumerstellustheywantto

beinvolved.Theywanttobepartof

thewaywedevelopnewideasand

newproducts,andcommunicate

aboutthem.Consumerswantto

createcontent.Theywantusto

followtheirlead,listenandreact."

Ilanit Vardimon

ConsumerandMarket

ResearchDirector

The organizations we engage with on a regular basis include those that address both global and local social and environmental causes.

The United Nations Global CompactThisisastrategicpolicyinitiativeforbusinessesthatarecommittedto

aligningtheiroperationsandstrategieswithtenuniversallyaccepted

principlesintheareasofhumanrights,labor,environmentandanti-

corruption.StraussGrouphasbeenamemberoftheGlobalCompact

since2008andiscommittedtoupholdingthetenprinciplesof

responsiblebusinessandreportingtransparentlyeveryyearon

progress.www.unglobalcompact.org

CatalystCatalystisaglobalnon-profitorganizationwhichaimstoexpand

opportunitiesforwomenandbusiness.Catalyst,withthehelp

ofitspartnersaroundtheworld,performsstudiestotrackthe

representationofwomenonboardsandseniormanagementusing

CatalystCensusmethodology.StraussisaCatalystCensusPartnerin

IsraelandhasexecutedtheCatalystCensusinIsraelforthepastfour

years.www.catalyst.org

Manufacturers' Association of Israel

Straussisanactivemember,supportingthe

Associationanditssector-specificFoodIndustries

Associationinpromotingindustryinterestsand

helpingadvancecausesforthebenefitofthefoodand

manufacturingsectorsinIsrael.StraussalsochairstheAssociation's

BusinessForumonCorruptionandBribery.StraussGroupPresident

andCEO,GadiLesin,istheChairmanoftheManufacturers'Councilof

theManufacturers'AssociationofIsrael.www.industry.org.il/Eng

Maala - Business for Social ResponsibilityMaalaisanot-for-profitorganizationwhichaimsto

advancesustainablebusinesspracticesinIsraeland

publishesanannualcorporatesocialresponsibility

rankingofIsraelicompanies.StraussGrouphasparticipatedinthis

annualrankingsinceitsinceptionandin2013,achievedthehighest

possibleranking,PlatinumPlus.StraussGroupChairperson,Ofra

StrausscompletedathreeyeartermasChairofMaalaattheendof

2013.www.maala.org.il

Transparency International (TI) Israel

TransparencyInternationalisaglobalmovementthatworksto

eliminatecorruptioningovernment,businessandcivilsociety.Strauss

supportstheeffortsoftheorganizationtopromotetransparency,

ethicsandresponsibility.www.transparency.org

Access IsraelAccessIsraelisanon-profitorganizationthatpromotes

accessibilityforpeoplewithdisabilities,andsupports

theirintegrationintosociety.StraussIsraelisamember

oftheBusinessAccessibilityForum,whichincludesover

35Israelicompanies.Thismembershipconstitutesa

commitmenttopromoteaccessibilitywithinourorganizationand

throughourservicesandproducts.www.aisrael.org

The Israeli Forum for Diversity HiringThisisanon-profitorganization

advancingtheintegrationof

disadvantagedpopulationsintotheworkplaceinIsrael,establishedby

theJointDistributionCommitteeofIsrael.Weareanactivemember

oftheForum.www.diversityisrael.org.il

TRANSPARENCYINTERNATIONALthe global coalition against corruption

טל:09-8992550 פקס:09-8992551 ת.ד. 3268 בית יהושע, 40591

להכשרה המרכז הלאומי הביטוח בעצמי ושיקום מקצועי טק קריירה מטה מאבק הנכיםהיהודי-ערבי המרכז ישראל Manpower

2000 ציונות ביחד עולים כלכלי לפיתוח UJA-Federation of New York קו משווה תבת מיסודה של תבת, ג'וינט ישראל

| 7372 |

Investing in education and career opportunitiesLeap to IndustryStrauss'sfactoryinUpperNazarethinvests

inyouthemployabilityandparticipated,for

thesecondyear,inthe"LeaptoIndustry"

programthatencouragesdisadvantaged

teenstolearnaboutindustryanddevelop

skillstohelpthemsecureajobwhenthey

graduatefromhighschool.Thefactory

hiredtwelfthgradestudentsfromlocal

technicalschoolstoworkinthefactory

twodaysaweekandduringholidayswhile

completingtheirhighschoolstudies.

Workingontheproductionfloor,students

gainprofessionalskillsinarealfactory

environmentandgainconfidencein

theirabilitytocontributeinameaningful

jobinthefuture.

Window to the FutureStraussIsrael'sdairyplantinAchihudinIsrael

hasparticipatedintheWindowtotheFuture

programsince2011.Thisprogramenables

youthfromunderprivilegedcommunities

tolearnaboutthejobmarketandthe

challengesandopportunitiesofhavinga

job.Teensjoiningtheprogramarebetween

theagesof16and18andhavedropped

outofeveryothereducationalstructure.By

workingwithStraussteammembers,these

youngpeoplegainauniqueopportunity

toexperienceworkfirst-handandreceive

personalcoachingandassistance.More

than15individualshaveparticipatedinthis

programsincewestartedin2011.

Aiming for SuccessStraussWateronceagainsupportedAimingfor

Success,aprogramthatsupportsyoungadults

indevelopingcareerpaths.Wepartnered

withalocalcommunityorganizationto

supportagroupofyoung19adultsfromthe

EthiopiancommunityinIsraeltohelpthem

acquiretoolstoguidethemthroughthefirst

stepsofdecidingonacademicstudiesand

seekingemployment.20managersatStrauss

Waterparticipatedindeliveringcoursesand

providingmentorshipforthestudents.

Investing in hunger reliefInIsrael,hundredsofthousandstonsoffood

arewastedeveryyear.Thisincludesproducts

thathavereachedtheirsell-bydate,foodthat

isnotsuitableformarketing(butissuitable

foreating)forvariousreasons,andexcess

orunmarketableagriculturalproduce.Over

1.8millionpeopleinIsraelsufferfromfood

insecurityandaredesperatelyinneedofthat

samefoodthatgoestowasteeveryday.

LeketIsraelNationalFoodBankandLatet-

IsraeliHumanitarianAidarethetwoleading

non-profitfoodbanksinIsrael.Weprefer

thatthefoodwastewegenerateisputto

productiveuse,ratherthancloggingupour

landfills.Therefore,wedonateunsalablefood

toLeketandLatetfordistributiontothose

inneed.BothLatetandLeketIsraelconform

tothehigheststandardsoffoodsafetywhen

andredistributingourproducts.In2013,we

donated600tonsofunsalablefooditemsto

LeketIsraelandtoLatet,therebydiverting

wastefromlandfillandmoreimportantly,

providingnutritiousanddeliciousfoodto

thousandsofIsraeliswhoareunabletomeet

theirfoodneedswithoutsupport.

Investing in social causesWecollaboratewith40communitypartners

inIsrael,supportingarangeofsocialcauses

withafocusonemploymentfordiverse

populationsandwomen'sempowerment.Our

activepartnershipsinclude:

Yedid - The association for community empowermentWesupportemploymentcoursesforwomen

thathaveleftthejobmarketandneed

guidanceandtrainingtorebuildtheircareers.

Be-AtzmiWesupporttrainingfordisadvantaged

populationsfromdiversebackgroundstohelp

themintegrateintothejobmarket.

Kav MashveWesupportcounselingprojects

foryoungadultsfromtheArab

population.

Elem (Youth in Distress)Wesupportanemploymentproject

foryoungadultsinperipheralareas.

Economic Empowerment for Women (EEW)Wesupportemploymentprojects

forwomenfromtheJewishandArab

populations.

The Abraham FundWesupportemploymenttrainingand

communityleadershipprogramsfor

womenfromtheArabcommunities

aroundourfactoriesinthenorthern

peripheryofIsrael.

Seealsothesectionon"Diversityineverything

wedo"formoreinitiativessupportingdiversity

inemploymentandeducation.

Ourcashandproductdonationsand

employeevolunteeringeffortsalsosupport

theworkoforganizationsthroughoutIsrael

thatadvancesocialcausessuchasaccessibility

forpersonswithdisabilities,sheltersfor

disadvantagedyouthandsocio-economic

developmentinperipheralcities.

Supporting educationin Strauss Coffee RomaniaIn2013,wepartneredwithtwosocial

organizations,WorldVisionandSchoolof

Values,tolaunchathreeyearprogramofnon-

formaleducationfor100youngpeoplefrom

disadvantagedcommunities.Theprogram

includesfactoryvisitstoexposestudentsto

differenttypesofrolesinindustry.

StraussCoffeeRomaniainvitedchildrenwithspecialneedsfroma

localschooltovisitthefactoryduringStraussGroupCSRDay2013.

In 2013, we donated 600 tons of unsalable food items to Leket Israel and to Latet, thereby diverting waste from landfill and more importantly, providing nutritious and delicious food to thousands of Israelis who are unable to meet their food needs without support.

Supporting our community

| 7574 |

Community investment ($million)

Product donations cost value

Value of employee volunteering time and

management costs

TOTAL

2011 2012 2013

1.13 0.73 1.101.87 1.56 1.450.21 0.22 0.863.21 2.51 3.41

Financial donations

Wemanageourcorporateresponsibility

effortswithinaleadershipmatrixstructure

ofglobalandlocalmanagersandtrustees

whodefineandexecutestrategy,creatework

plans,andcommunicatewithemployees.

MichaelAvnerisStraussGroup’sGeneral

CounselandCompanySecretary,andis

theGroupManagementTeammember

responsibleforCR.TheCRDirectorreportsto

him.HeoverseesandupdatestheBoardof

DirectorsandGroupManagementTeamon

CRperformanceandopportunities.Theteam

responsibleforadvancingCRincludes:

•Corporate Responsibility Director,Daniela

Prusky-Sion,isresponsiblefordeveloping

globalcorporateCRStrategyandensuring

aframeworkofimplementationsacrossour

globalbusinessdivisions.Danielaalsodirects

thedevelopmentofourannualCRreport

andrepresentsStraussGroupinexternalCR

conferencesandnetworks.

•The Corporate Social Councilwascreated

in2011andiscomprisedofagroupof

seniorexecutivesrepresentingcorporate

andStraussIsraelleadership.Thecouncil

providesdirectionandsupportfor

stakeholderengagementatdifferentlevels

andhelpsensureopportunitiesfordialogue

arerealized.

•Corporate Responsibility Trusteesrepresent

businessunitsfromallStraussGroup

companiesandhelpmanageCRactivitiesin

theiroperations.Thirty-fivetrusteesmeet

annually,receivetraininginCRrelated

issues,andactasadivisionalcontactpoint

toreinforceprogress,communications

andethicalbehavior.In2013,thetrustees

supportedtheStraussGroup2020

SustainabilityStrategydevelopment,

includingparticipatinginareviewand

discussionwithGadiLesin,StraussGroup

PresidentandCEO.

•Community Leadersactascoordinators

betweenlocalcommunitypartnersandour

differentbusinessunits.Theyworkwith

communitypartnerstoidentifylocalneeds,

executeactivities,maintainrelationshipsand

engageemployeesinvolunteeringactivities.

CommunityLeadersinIsraelmeetannually

toreviewprogressandshareideas.

Governance and ethics

OurBoardofDirectorsmaintainsfivecommitteeswhichassisttheBoardincarryingoutitsduties.

Committee Purpose

Audit Committee TheAuditCommitteeischargedmainlywithoversightofthe

internalauditor,andinternalauditreports,andriskmanagement.

Financial Statements

Review Committee

ThisCommitteeisresponsibleformonitoringthefinancial

reportingandfinancialstatementsandreports.

Finance Committee TheroleoftheFinanceCommitteeisprimarilytoprovidefinancial

oversightfortheorganization.

Human Resources

and Compensation

Committee

TheroleoftheHumanResourcesandCompensationCommittee

istoensurethattheCompany'scompensationprogramis

consistentwiththeCompany’sstatedcompensationstrategyand

therequirementsofregulatorybodies.

Investment and M&A

Committee

Thisisanad-hoccommitteethatreconvenestoreview

investmentsandM&Aopportunities.

GovernanceTheStraussGroupBoardofDirectorsis

comprisedof12members,ofwhich5are

women.Fiveareindependent(includingtwo

publicdirectors).NoneoftheDirectorsare

membersoftheexecutivemanagementteam

orholdanymanagementorotherposition

intheGroup.EightmembersoftheBoard

havebeenidentifiedashavingfinancialand

accountingskillsasdefinedbyregulation.

Men Women

over 70

241

7(58%) 5(42%)

221 over 70

60-70

under 60

60-70

under 60

We manage our corporate responsibility efforts within a leadership matrix structure of global and local managers and trustees who define and execute strategy, create work plans, and communicate with employees.

Managing corporate responsibility

| 7776 |

Strauss Group Board Composition, 2013

EthicsWeaimtoensurethatweoperateinlinewith

thehighestethicalstandardsatalltimesand

maintainanethicalbusinessculture.Our

CodeofEthics,whichistranslatedintoeleven

languages,isavailabletoallemployeesateach

ofoursitesaroundtheworld,onourintranet

portal,andavailabletoallonourcorporate

website.Allnewemployeesreceiveethics

traininguponjoiningthecompany.Everysite,

factoryandlogisticscenterhasadedicated

ethicscorner,whereemployeescanfindthe

CodeofEthics,aswellasabookletillustrating

ethicaldilemmasandtheappropriate

responses.AnEthicsTrusteeisappointedin

eachofourbusinessunitsasapointofcontact

foremployeequestions,orforreporting

suspectedethicalbreaches.Thethirty-five

EthicsTrusteesinStraussGroupimplement

ethicstrainingandmonitorperformance.

New Code of Ethics e-learning moduleIn2013,welaunchedacomputerizedlearning

moduletorefreshknowledgeofourCodeof

Ethics.Themoduleprovidesanefficient,in-

depthlearningprocessandrequirespassing

ashortexamuponcompletion.In2013,

1,500employeesinIsraelcompletedthe

ethicscomputerizedlearningmodule.Other

employeeshavecompletedfacetofaceethics

trainingthroughouttheyear.

Wemaintainanopen24-hourhotlinethrough

whichStraussGroupemployeesaroundthe

worldareencouragedtoreportanybreaches

oftheCodeofEthics,withoutfearofreprisal.

Thehotlineisaccessiblethroughphone

orviatheStrausswebsite.In2013,seven

approacheswerereceivedtothehotlineand

allwereinvestigatedandresolved.

Risk ManagementWeanalyzeandassessbusiness,social

andenvironmentalrisks,andundertake

appropriatesafeguardingmeasuresaspart

ofourprecautionaryapproach.TheAudit

CommitteeoftheBoardofDirectorsof

StraussGroupsupervisesandassessesrisks

identifiedanddirectsappropriateaction

withinthecompaniesintheGroup.In2013,

weconductedafullrisksurvey.Formore

informationonRiskManagement,pleasesee

our2013AnnualReport.

ComplianceInternalcomplianceauditsbyanindependent

auditortakeplaceateachoftheStraussGroup

sitesaroundtheworld.In2013,23percent

ofoursitesandbusinessunitsworldwide

underwentanaudittomonitorcompliance

withlawsandregulationsandinternal

companypolicies.Areasoffocusincluded

ethics,preventionofsexualharassment,

safety,environmentalperformance,food

safety,informationsecurity,workplaceand

employeerights,andpoliciesregarding

donations.Subsequently,ourinternal

auditorrecommendedactionswhichweare

implementingduring2014.

Inlinewithregulatoryrequirements,Strauss

Groupmaintainscomplianceprograms

forenforcementofsecuritiesandanti-

trustlaw.In2013,weimplementeda

computerizedlearningmoduleonthese

subjects,designedforseniormanagers

andemployeesfromthefinance,legaland

communicationsdepartments.

| 7978 |

| 8180 |

ThisisourseventhannualSustainability

Reportanditdescribesourapproach

tosustainabilityandthekeyactions

wehavetakenduring2013toadvance

responsibleandsustainablepractices

inourglobalbusiness.Itisdesigned

toprovideourstakeholderswitha

transparentaccountofourimpactson

societyandenvironment.Inallcases,

datarelatestothe2013calendaryear

unlessotherwisestated.Ourlastreport

waspublishedduring2013coveringthe

calendaryear2012.

Indevelopingthisreport,wehave

consideredinputfromourprimary

stakeholders,employeesand

consumers,andadditionalstakeholders

whereappropriate.TheCorporate

ResponsibilityDirectorandother

StraussGroupexecutivesdetermined

theselectionofcontentforthisreport

basedonanassessmentofmaterial

issues,includingthoseknowntobe

importanttostakeholdersandfollowing

specificconsultationwithexpertson

prioritysustainabilityissues.

Thisreportisinaccordancewiththe

GlobalReportingInitiative(GRI)G4

sustainabilityreportingguidelinesat

Corelevel,thatrepresentsthemost

advancedsustainabilityreporting

frameworkavailabletoday.TheGlobal

ReportingInitiativeisanot-for-profit

multi-stakeholderorganizationwhich

actstoincreasethelevelofbusiness

transparencythroughsustainability

reportingamongcompanies

throughouttheworld.Themaintool

forassimilatingsustainabilityreporting

istheGRIreportingframework,which

containsdetailedguidelinesfor

reportingonsustainabilityimpacts

andprovidesaconsistentstructure

thatthousandsofcompaniesaround

theworldusetodiscloseperformance

relatedtosustainability.Over7,000

sustainabilityreportswerepublishedin

2013bycompaniesallovertheworld,

manyofthemusingtheGRIframework.

ThemostrecentversionoftheGRI

framework,G4,waslaunchedinMay

2013.Formoreinformation,pleasesee:

www.globalreporting.org.

Thisreportisinaccordancewiththe

principlesfordefiningreportcontent

setoutintheG4guidelines.Theseare:

Materiality(theissuesmostimportant

forourlong-termbusinessgrowth

andwhichareofmostimportanceto

stakeholders),StakeholderInclusiveness

(respondingtostakeholderexpectations

andinterests),SustainabilityContext

(presentingourperformancein

thewidercontextofsustainability

issues)andCompleteness(inclusion

ofalltheinformationthatreflects

significanteconomicimpactsinorder

toenablestakeholderstoassessour

performance).

Wedonotseekexternalassurancefor

ourreport,duetoresourcelimitations,

butexternalconsultantsandreporting

expertsassistinourreportpreparation

andsupportenvironmentaldata

collectionincludingscrutinyofdataand

datacollectionprocesses.Thisreport

alsocomplieswithourcommitmentto

submitanannualCommunicationon

ProgresstotheUNGlobalCompact.

MoreinformationaboutStraussGroup

canbefoundonourcorporateglobal

website,www.strauss-group.com,and

thewebsitesofoursubsidiarycompanies

(accessibleviaourglobalwebsite).

Notes to data collectionEnvironmentaldatacollectionincludesallthesiteslistedinthetablebelowonthebasisofoperationalcontrol,andcoversmore

than90%ofourtotalproductionoperations.

Country Location Main Activity Built area (m2)

Included in our data collection

2011 2012 2013

Australia Cavan,SouthAustralia Productionofdips** 2,000 N/A r a

Brazil SantaLuzia,nearBelo

HorizonteinMinasGerais

state

Productionofroastandgroundcoffee

andcappuccino.

12,800 a a a

Brazil InEusébio,inthestateof

Ceará

Productionofroastandgroundcoffee. 4,650 a a a

Brazil NatalinRioGrandedo

Nortestate

Productionofcoffee,chocolateand

cappuccino.

8,100 a a a

Brazil NovaIguaçu,inthestate

ofRio

deJaneiro

Productionoffilterpaperforfilter

coffee.

3,150 a a a

Brazil MossoroRioGrandedo

Nortestate

Productionofcornproductsanddrink

powders.

13,200 r r r

Brazil Varginha,inMinas

Geraisstate

Processingofgreencoffee. 7,300 r r r

China ShangHai StraussWateroffices. r r r

China Changzhen StraussWaterofficesandoutsourced

production.

r r r

Germany Upahl Instantcoffeeproduction. 11,608 N/A r a

Israel Achihud Productionofdairyproducts. 21,000 a a a

Israel Nazareth Productionofchocolate,

candyandgum.

35,000 a a a

Israel BeitShemesh MaxBrennerchocolates. 2,300 a a a

Israel Shderot Saltysnacksproduction. 10,000 a a a

Israel Yotvata Productionofmilkbeveragesand

enrichedmilk.

6,100 a a a

Israel Netivot Productionofdairyproducts. 2,020 a a a

Israel Carmiel Productionofsalads. 9,000 a a a

Israel SdeNitzan Cutting,mixingandpackagingoffresh

refrigeratedvegetables.

2,560 a a a

Israel YadMordechai Productionofhoneyproducts,oliveoil

andjams.

4,300 a a a

About our reporting

| 8382 |

Country Location Main Activity Built area (m2)

Included in our data collection

2011 2012 2013

Israel HaifaBay RefrigerateddistributioninIsrael. 4,735 a a a

Israel Acre Logisticscenter. 8,695 a a

Israel PetachTikva RefrigerateddistributioninIsrael. 5,790 a a a

Israel BeitShemesh RefrigerateddistributioninIsrael. 390 a a a

Israel Beersheba RefrigerateddistributioninIsrael. 4,920 a a a

Israel Zerifin RefrigerateddistributioninIsrael. 19,000 a a a

Israel Safed Productionofinstantcoffee. 5,300 a a a

Israel Lod Productionofroastandgroundcoffee

andchocopowder.

4,441 a a a

Israel PetachTikvah CorporateHeadOffices. 2,500 a a a

Israel NativHaLamedHe

Kibbutz

StraussWaterplant. 6,092 a a a

Israel OrYehuda StraussWaterheadquarters. 6,760 a a a

Israel Lod StraussWaterstorageunit. 1,250 r a a

Mexico MexicoCity Productionofchilledsaladsanddips. 1,639 N/A r r

Poland InSwadzim,nearPoznan Productionofroastandgroundcoffee. 11,540 a a a

Romania Bucharest Productionofroastandgroundcoffee

andinstantcoffee.

4,365 a a a

Russia Strunino,Vladimir

District

Productionofroastandgroundcoffee

andapackagingplantforfreeze-dried

instantcoffee,chicory,etc.

13,370 r r a

Serbia Simanovci,near

Belgrade

Productionofroastandgroundcoffee. 8,500 a a a

Netherlands Amsterdam StraussCoffeeGlobalHQ. N/A r a

UK Guildford,Surrey StraussWaterOfficesandsales

organization.

r r r

U.S. Virginia Productionofchilledsaladsanddips. 10,630 a a a

U.S. Virginia*** Sabraheadquarters a a a

U.S. Oceanside,California**** Productionofsalsadips. 3,700 r r r

U.S. Farmingdale,NY**** Productionofdairydips. 3,900 r r r

U.S. Philadelphia,Boston,Las

Vegas,NewYorkCity

MaxBrennerHeadquartersand

ChocolateBars*****

a a a

*Inaddition,selecteddatahasbeencollectedfrom55pointsofretailcoffeesalesinIsrael.

**DatafromObelaAustraliaincludesonlytotalemployeenumbers,energyandwaterconsumptionandGHGemissions.

***DatafromSabraheadquartersexcludesenvironmentaldata.

****OurSabraPlantsinOceanside,California,andFarmingdale,NYcurrentlyhavenoreportinginfrastructureinplace.Thesesitesconstitutelessthan

10%ofSabraproduction.

*****DatafromMaxBrennerU.S.excludesenvironmentaldata.

Energy consumption

BiomassusedinIsraelandSerbiais

classedasrenewablebiomass.

Carbon Emissions

Carbonemissionconversions

uselatestavailableGHGProtocol

conversionfactorsineachcountryof

operation,withtheexceptionofIsrael,

wherelocallypublishedelectricity

companyconversionfactorsareused.

Renewablebiomasshaszerocarbon

emissions(CDP).

Employees

Inour2013AnnualReport,the

numberofdirectemployeeswas

reportedas13,565inourglobal

operationsincludingcontractand

supervisedemployees,and12,426

directemployees.Employeedatainthis

reportisbasedonthetotalof12,556

directemployees.Thisgapisdueto

minordifferencesinreportingcut-off

datesbetweenthedifferentStrauss

companiesanddifferencesinthescope

ofdatacoveredinbothreports.

GRI G4 content indexG4 General standard disclosures Page/Link External

Assurance

STRATEGY AND ANALYSIS

G4-1 Provideastatementfromthemostseniordecision-maker

oftheorganization(suchasCEO,chair,orequivalent

seniorposition)abouttherelevanceofsustainabilitytothe

organizationandtheorganization’sstrategyforaddressing

sustainability.

Messagefromourleadership:page4 None.

ORGANIZATIONAL PROFILE

G4-3 Reportthenameoftheorganization. Straussataglance:page6 None.

G4-4 Reporttheprimarybrands,products,andservices. Straussataglance:page6,7 None.

G4-5 Reportthelocationoftheorganization’sheadquarters. Straussataglance:page6 None.

G4-6 Reportthenumberofcountrieswheretheorganization

operates,andnamesofcountrieswhereeitherthe

organizationhassignificantoperationsorthatare

specificallyrelevanttothesustainabilitytopicscoveredin

thereport.

Straussataglance:page7 None.

G4-7 Reportthenatureofownershipandlegalform. Straussataglance:page6 None.

G4-8 Reportthemarketsserved(includinggeographic

breakdown,sectorsserved,andtypesofcustomersand

beneficiaries).

Straussataglance:page6,7 None.

| 8584 |

G4 General standard disclosures Page/Link External Assurance

G4-9 Reportthescaleoftheorganization,including:Total

numberofemployees;Totalnumberofoperations;Net

sales(forprivatesectororganizations)ornetrevenues

(forpublicsectororganizations);Totalcapitalization

brokendownintermsofdebtandequity(forprivate

sectororganization);Quantityofproductsorservices

provided.

Page88 None.

G4-10 a.Reportthetotalnumberofemployeesbyemployment

contractandgender.b.Reportthetotalnumber

ofpermanentemployeesbyemploymenttypeand

gender.c.Reportthetotalworkforcebyemployeesand

supervisedworkersandbygender.d.Reportthetotal

workforcebyregionandgender.e.Reportwhether

asubstantialportionoftheorganization’sworkis

performedbyworkerswhoarelegallyrecognizedas

self-employed,orbyindividualsotherthanemployeesor

supervisedworkers,includingemployeesandsupervised

employeesofcontractors.f.Reportanysignificant

variationsinemploymentnumbers(suchasseasonal

variationsinemploymentinthetourismoragricultural

industries).

Page88 None.

G4-11 Reportthepercentageoftotalemployeescoveredby

collectivebargainingagreements.

46%ofourglobalworkforceiscoveredby

CollectiveBargainingAgreements.

None.

G4-12 Describetheorganization’ssupplychain. EthicalSupplyChain:page50,51 None.

G4-13 Reportanysignificantchangesduringthereporting

periodregardingtheorganization’ssize,structure,

ownership,oritssupplychain.

Therewerenosignificantchangesinour

operationsduringthereportingperiod

None.

G4-14 Reportwhetherandhowtheprecautionaryapproachor

principleisaddressedbytheorganization.

Riskmanagement:page78 None.

G4-15 Listexternallydevelopedeconomic,environmentaland

socialcharters,principles,orotherinitiativestowhich

theorganizationsubscribesorwhichitendorses.

Engagingwithindustryandsocial

organizations:page72,73

None.

G4 General standard disclosures Page/Link External Assurance

G4-16 Listmembershipsofassociations(suchasindustry

associations)andnationalorinternationaladvocacy

organizationsinwhichtheorganization:

Holdsapositiononthegovernancebody;Participates

inprojectsorcommittees;Providessubstantivefunding

beyondroutinemembershipdues;Viewsmembership

asstrategic.Thisrefersprimarilytomemberships

maintainedattheorganizationallevel.

Engagingwithindustryandsocial

organizations:page71

None.

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17 a.Listallentitiesincludedintheorganization’s

consolidatedfinancialstatementsorequivalent

documents.b.Reportwhetheranyentityincludedin

theorganization’sconsolidatedfinancialstatementsor

equivalentdocumentsisnotcoveredbythereport.

Notestodatacollection:page81,82

Entitiesincludedinthefinancialreport

thatareexcludedfromthisreport:

•StraussWateroperationsinChina

(partnershipwithHaier)andintheUK

(partnershipwithVirgin).

•MaxBrennerfranchiseoperations:Israel,

Australia,Philippines,Singapore.

•OperationsofObelaMexico.

None.

G4-18 a.Explaintheprocessfordefiningthereportcontent

andtheAspectBoundaries.b.Explainhowthe

organizationhasimplementedtheReportingPrinciples

forDefiningReportContent.

Aboutourreporting:page80 None.

G4-19 ListallthematerialAspectsidentifiedintheprocessfor

definingreportcontent.

Ourprioritysustainabilityissues:

page18,19

None.

G4-20 a.ForeachmaterialAspect,reporttheAspectBoundary

withintheorganization,asfollows:

ReportwhethertheAspectismaterialwithinthe

organization.IftheAspectisnotmaterialforallentities

withintheorganization(asdescribedinG4-17),select

oneofthefollowingtwoapproachesandreporteither:

Thelistofentitiesorgroupsofentitiesincludedin

G4-17forwhichtheAspectisnotmaterialorThelistof

entitiesorgroupsofentitiesincludedinG4-17forwhich

theAspectsismaterial:Reportanyspecificlimitation

regardingtheAspectBoundarywithintheorganization.

Page90 None.

| 8786 |

G4 General standard disclosures Page/Link External Assurance

G4-21 a.ForeachmaterialAspect,reporttheAspectBoundary

outsidetheorganization,asfollows:

ReportwhethertheAspectismaterialoutsideofthe

organization.IftheAspectismaterialoutsideofthe

organization,identifytheentities,groupsofentitiesor

elementsforwhichtheAspectismaterial.Inaddition,

describethegeographicallocationwheretheAspectis

materialfortheentitiesidentified.Reportanyspecific

limitationregardingtheAspectBoundaryoutsidethe

organization.

Page90 None.

G4-22 Reporttheeffectofanyrestatementsofinformation

providedinpreviousreports,andthereasonsforsuch

restatements.

Therearenorestatementsofinformation

providedinpreviousreports.

None.

G4-23 Reportsignificantchangesfrompreviousreporting

periodsintheScopeandAspectBoundaries.

Therearenosignificantchangesinthe

ScopeandAspectBoundariesfrom

previousreportingperiods.

None.

STAKEHOLDER ENGAGEMENT

G4-24 Providealistofstakeholdergroupsengagedbythe

organization.

Engagingstakeholders:page68,69 None.

G4-25 Reportthebasisforidentificationandselectionof

stakeholderswithwhomtoengage.

Engagingstakeholders:page68,69 None.

G4-26 Reporttheorganization’sapproachtostakeholder

engagement,includingfrequencyofengagement

bytypeandbystakeholdergroup,andanindication

ofwhetheranyoftheengagementwasundertaken

specificallyaspartofthereportpreparationprocess.

Engagingstakeholders:page68,69 None.

G4-27 Reportkeytopicsandconcernsthathavebeenraised

throughstakeholderengagement,andhowthe

organizationhasrespondedtothosekeytopicsand

concerns,includingthroughitsreporting.Reportthe

stakeholdergroupsthatraisedeachofthekeytopics

andconcerns.

Ourprioritysustainabilityissues:page18

ExpertRoundTable:page20,21

PerspectivesfromAronCramer:page22,23

None.

REPORT PROFILE

G4-28 Reportingperiod(suchasfiscalorcalendaryear)for

informationprovided.

Aboutourreporting:page80 None.

G4-29 Dateofmostrecentpreviousreport(ifany). Aboutourreporting:page80 None.

G4-30 Reportingcycle(suchasannual,biennial). Aboutourreporting:page80 None.

G4 General standard disclosures Page/Link External Assurance

G4-31 Providethecontactpointforquestionsregardingthe

reportoritscontents.

DanielaPrusky-Sion,

GlobalCorporateResponsibilityManager

StraussGroup

Hasivim49,PetahTikvah,49517Israel

daniela.sion@strauss-group.com

None.

G4-32 a.Reportthe‘inaccordance’optiontheorganization

haschosen.b.ReporttheGRIContentIndexforthe

chosenoption(seetablesbelow.c.Reportthereference

totheExternalAssuranceReport,ifthereporthasbeen

externallyassured.

Aboutourreporting:page80

GRIContentIndex:page83

Thisreporthasnotbeenexternallyassured.

None.

G4-33 a.Reporttheorganization’spolicyandcurrentpractice

withregardtoseekingexternalassuranceforthe

report.b.Ifnotincludedintheassurancereport

accompanyingthesustainabilityreport,reportthe

scopeandbasisofanyexternalassuranceprovided.c.

Reporttherelationshipbetweentheorganizationand

theassuranceproviders.d.Reportwhetherthehighest

governancebodyorseniorexecutivesareinvolvedin

seekingassurancefortheorganization’s

sustainabilityreport.

Aboutourreporting:page80 None.

GOVERNANCE

G4-34 Reportthegovernancestructureoftheorganization,

includingcommitteesofthehighestgovernancebody.

Identifyanycommitteesresponsiblefordecision-

makingoneconomic,environmentalandsocialimpacts.

Governanceandethics:page76 None.

ETHICS AND INTEGRITY

G4-56 Describetheorganization’svalues,principles,standards

andnormsofbehaviorsuchascodesofconductand

codesofethics.

Ourvisionandvalues:page10

Ethics:page78

None.

| 8988 |

G4-9 Scale of the organizationTotal number of employees:SeeourresponsetoG4-10below

Total number of operations:SeeNotestodatacollectionabove

Net sales:SeesectionStraussataglance

Net revenues:SeesectionStraussataglance

Total capitalization:SeeourAnnualReport2013

Quantity of products or services provided: Wesuppliedalmost500,000tonsoffoodandbeverageproductsin2013.

G4-10 Employees Total number of employees by gender 2012 2013

Male 6,939 7,394

Female 5,243 5,162

Total employees 12,182 12,556

Total number of employees by contract 2012 2013

Permanentcontract 11,979 11,928

Temporarycontract 203 628

Total employees 12,182 12,556

Total number of employees by type 2012 2013

Fulltime 11,540 11,014

Parttime 823 1,542

Total employees 12,363 12,556

Total number of employees by region and gender

2012 2013

Male Female Total Male Female Total

Brazil 2,703 1,356 4,059 2,997 1,436 4,433

Europe 889 601 1,490 994 668 1,662

Israel 2,795 2,863 5,658 2,806 2,588 5,394

U.S. 552 423 975 597 470 1,067

Total employees 6,939 5,243 12,182 7,394 5,162 12,556

Percentagemale-female 57% 43% 59% 41%

Total workforce by employees and supervised workers and by gender

2013

Male Female Total

Employees 7,394 5,162 12,556

Supervisedworkers 401 356 756

Total employees and supervised workers 7,795 5,518 13,312

InStraussIsrael,ourlocalproductdistributiontosmallretailoutletsisperformedby265independentdistributorsthatworkwithStrauss

onanexclusivebasis.Therearenosignificantseasonalvariationswhenconsideringourentireproductportfoliothroughouttheyear.

| 9190 |

G4-20 Internal Aspect Boundaries /G4-21 External Aspect BoundariesMaterial Aspects (G4-19)

Category / Aspect / Indicator Boundary

Healthy lifestyles Social:Society:Localcommunities:G4-SO1External:impactsconsumers

inallthemarketswherewe

operate.

Social:Society:Healthyandaffordablefood:FP4

Social:Productresponsibility:customerhealthandsafety:FP6

Economic:Indirecteconomicimpacts:G4-EC8,FP7

Reduce resource

consumption and

waste in our value

chain

Environmental:Materials:G4-EN1

Externak:environmental

sustainabilityinallour

markets

Environmental:Energy:G4-EN3,G4-EN5

Environmental:Water:G4-EN8

Environmental:Emissions:

G4-EN15,G4-EN16,G4-EN18,G4-EN20,G4-EN21

Environmental:Effluentsandwaste:G4-EN22,G4-EN23

Environmental:Overall:G4-EN31

Clear product

labeling and

responsible

marketing

Social:Productresponsibility:Productandservice

labeling:G4-PR3,G4-PR5 External:impactsconsumers

inthemarketswherewe

operate.Social:MarketingcommunicationsG4-PR7

Social:Productresponsibility:Productandservicelabeling:FP8

Ethical sourcing and

supply chain

Economic:Procurementpractices:FP1,FP2 External:impactssuppliers

andeconomiesinthe

marketswhereweoperate.

Diversity in

everything we do

Social:Diversityandequalopportunity:G4-LA12 Internal:impactsour

employeesandtheirpersonal

growthandopportunitiesSocial:Laborpracticesanddecentwork:Equalremunerationfor

womenandmen:G4-LA13

Social:Society:Localcommunities:G4-SO1 External:impacts

communitiesandeconomic

developmentinthemarkets

whereweoperate.

Economic:Procurementpractices:G4-EC9

Engaging our

Employees

Social:Laborpracticesanddecentwork:Employment:G4-LA1

Internal:impactsour

employees,theirsafetyand

wellbeing,andpersonal

growthandopportunities

Social:Laborpracticesanddecentwork:occupationalHealthand

safety:G4-LA6

Social:Laborpracticesanddecentwork:Trainingandeducation:

G4-LA10,G4-LA11

Specific standard disclosuresMaterial Aspects(G4-19)

DMA and Indicators Page/Link Omissions ExternalAssurance

Healthy

lifestyles

Social: Society: Local communities: G4-SO1

Percentageofoperationswithimplemented

localcommunityengagement,impact

assessments,anddevelopmentprograms.

Supportingour

community:page74,75

100%ofourcompanies

maintainlocalcommunity

engagementprograms.

None.

Social: Society: Healthy and affordable Food: FP4

Nature,scopeandeffectivenessof

anyprogramsandpractices(in-kind

contributions,volunteerinitiatives,

knowledgetransfer,partnershipsandproduct

development)thatpromotehealthylifestyles;

thepreventionofchronicdisease;accessto

healthy,nutritiousandaffordablefood;and

improvedwelfareforcommunitiesinneed.

Promotinghealthy

lifestyles:pages26-31

Raisinghealthylifestyle

awareness:page33

None.

Social: Product Responsibility: Customer health

and safety: FP6

Percentageoftotalsalesvolumeofconsumer

products,byproductcategory,thatarelowered

insaturatedfat,transfats,sodiumandsugars.

Specificdatabysales

andcategoryisnot

available.Thisisin

developmentandwe

willreportin2015.

None.

Economic: Indirect economic impacts: G4-EC8

Significantindirecteconomicimpacts,

includingtheextentofimpacts.

Promotinghealthy

lifestyles:pages26-31

None.

Economic: Indirect economic impacts: FP7

Percentageoftotalsalesvolumeofconsumer

products,byproductcategorysold,that

containincreasedfiber,vitamins,minerals,

phytochemicalsorfunctionalfoodadditives.

Specificdatabysales

andcategoryisnot

available.Thisisin

developmentandwe

willreportin2015.

None.

| 9392 |

Material Aspects(G4-19)

DMA and Indicators Page/Link Omissions ExternalAssurance

Reduce

resource

consumption

and waste

in our value

chain

Environmental: Materials: G4-EN1

Materialsusedbyweightorvolume.

Page94 Datacoverskey

materialsinIsrael

only.

None.

Environmental: Energy: G4-EN3

Energyconsumptionwithintheorganization.

Page95 None.

Environmental: Energy: G4-EN5

Energyintensity.

Page95 None.

Environmental: Water: G4-EN8

Totalwaterwithdrawalbysource.

Page96 None.

Environmental: Emissions: G4-EN15

Directgreenhousegas(GHG)emissions

(Scope1).

Page97 None.

Environmental: Emissions: G4-EN16

Energyindirectgreenhousegas(GHG)

emissions(Scope2).

Page97 None.

Environmental: Emissions: G4-EN18

Greenhousegasemissionsintensity.

Page98 None.

Environmental: Emissions: G4-EN20

Ozonedepletingsubstances.

Page98 None.

Environmental: Emissions: G4-EN21

Emissionsofairpollutants(NOx,SOxandPM).

Page98 None.

Environmental: Effluents and waste: G4-EN22

Totalwastewaterpollutantlevels.

Page98 None.

Environmental: Effluents and waste: G4-EN23

Totalweightofwastebytypeanddisposal

method.

Page99 None.

Environmental: Overall: G4-EN31

Totalenvironmentalprotectionexpenditures

andinvestmentsbytype.

Resourceconsumption:

page56

Dataprovidedisfor

totalexpenditures.

Wedonot

currentlyreport

environmental

investmentbytype.

None.

Material Aspects(G4-19)

DMA and Indicators Page/Link Omissions ExternalAssurance

Clear product

labeling and

responsible

marketing

Social: Product responsibility: Product and

service labeling : G4-PR3

Productandserviceinformationandlabeling.

Producttransparency:

page34

None.

Social: Product responsibility: Product and

service labeling: G4-PR5

Surveysmeasuringcustomersatisfaction.

Customersatisfactionand

service:page34,35

None.

Social: Marketing communications G4-PR7

Non-compliancewithregulationsconcerning

marketingcommunications.

Noincidencesofnon-

compliance.

None.

Social: Product responsibility: Product and

service labeling: FP8

Policiesandpracticesoncommunicationto

consumersaboutingredientsandnutritional

informationbeyondlegalrequirements.

Producttransparency:

page34

None.

Ethical

sourcing and

supply chain

Economic: Procurement practices: FP1

Percentageofpurchasedvolumefrom

supplierscompliantwiththecompany’s

sourcingpolicy.

Page99 Dataiscurrently

availableforour

suppliersinIsrael

only

None.

Economic: Procurement practices: FP2

Percentageofpurchasedvolumewhichis

verifiedasbeinginaccordancewithcredible

internationallyrecognizedresponsible

productionstandards,brokendownbystandard.

Page99 Wecurrentlyreport

onprocurement

practicesforcoffee

andcocoaonly.

None.

Diversity in

everything

we do

Social: Diversity and equal opportunity: G4-LA12

Compositionofgovernancebodiesand

breakdownofemployeesperemployee

categoryaccordingtogender,agegroup,

minoritygroupmembership,andother

indicatorsofdiversity.

Governance:page76

Page99

None.

Social: Labor Practices and decent work: Equal

Remuneration for women and men: G4-LA13

Ratioofbasicsalaryandremunerationof

womentomen.

Page100 None.

Social: Society: Local communities: G4-SO1

Percentageofoperationswithimplemented

localcommunityengagement,impact

assessments,anddevelopmentprograms.

Advancingwomenandbusiness

inourcommunity:page48

100%ofourcompaniesmaintain

localcommunityengagementprograms.

None.

Economic: Procurement practices: G4-EC9

Proportionofspendingonlocalsuppliersat

significantlocationsofoperation.

Ethicalsupplychain:

page51

None.

| 9594 |

Material Aspects(G4-19)

DMA and Indicators Page/Link Omissions ExternalAssurance

Engaging our

Employees

Social: Labor practices and decent work:

Employment: G4-LA1

Totalnumberandratesofnewemployee

hiresandemployeeturnoverbyagegroup,

gender,andregion.

Page101 None.

Social: Labor practices and decent work:

Occupational health and safety: G4-LA6

Typeofinjuryandratesofinjury,occupational

diseases,lostdays,andabsenteeism,and

totalnumberofwork-relatedfatalities,by

regionandbygender.

Page102 Dataisnotsplit

bygender.Some

locationswerenot

abletoprovide

absenteeism

information.

None.

Social: Labor practices and decent work:

Training and education: G4-LA10

Programsforskillsmanagementand

lifelonglearningthatsupportthecontinued

employabilityofemployeesandassistthemin

managingcareerendings.

Leadership,development

andtraining:page39

None.

Social: Labor practices and decent work:

Training and education: G4-LA11

Percentageofemployeesreceivingregular

performanceandcareerdevelopment

reviews,bygenderandbyemployeecategory.

Page103 None.

G4-EN1: MaterialsWenotethevolumesofourtopfouringredientsusedinStraussIsraelin2013.Dataforglobalpurchasesandotherlocations

isnotavailableatthistime.Weareimprovingourdataprocessesandexpecttoincreaseourreportingagainstthisindicatorin

comingyears.

Four key ingredients: Strauss Israel Tons

Cocoa 4,988

Chickpea 4,315

Sugar 16,058

Vegetableoil 4,383

G4-EN3 Energy consumptionTotal energy consumption All figures in gigajoules

2010 2011 2012 2013 Change from 2012 (%)

Fuel consumption from non-renewable sources (Scope1)

NaturalGas 413,503 403,040 421,510 591,817 40%

FuelOil 135,762 140,796 161,684 134,053 17%

DieselFuel 94,373 96,901 95,707 91,728 -4%

Ethanol 725 1,175 1,255 535 -57%

LPG 287,930 289,898 281,495 298,192 6%

Gasoline 137,325 117,527 139,298 141,010 1%

Total fuel consumption from

non-renewable sources

1,069,618 1,049,337 1,100,949 1,257,335 14%

Fuelconsumptionfromrenewablesources-coffee

biomass(Scope1)

86,520 91,317 29,734 75,323 153%

Total fuel consumption from renewable

and non renewable sources

1,156,138 1,140,654 1,130,683 1,332,657 18%

Electricitypurchasedfromgrid(Scope2) 482,608 460,340 473,932 504,855 7%

Total energy consumption (Scope 1 & Scope 2) 1,638,746 1,600,994 1,604,615 1,837,512 15%

Notes:

•Wedonotpurchaseheating,coolingorsteam,andwedonotsellelectricity,heatingcoolingorsteam

•EnvironmentaldatafromMaxBrennerU.S.operationsarenotincludedasthisisnotavailableatthistime.

•Coffeebiomassusageincreasedin2013asaresultofthecoffeemassboilerbeinginoperationforafullyear.In2012,itwas

notfunctionalforpartoftheyear.

•Theoverallincreaseinenergyconsumptionin2013ismainlyexplainedbyinclusionofsitesnotpreviouslyreported:Russia,

GermanyandHolland.

G4-EN5 Energy intensityEnergy intensity All figures in gigajoules per ton of production

2010 2011 2012 2013 Change from 2012 (%)

Scope1 2.46 2.63 2.40 2.69 12%

Scope2 1.03 1.06 1.00 1.01 1%

Total energy intensity 3.49 3.69 3.40 3.70 9%

| 9796 |

Energy intensity calculation

Ourenergyintensityratioiscalculatedpertonofproduction.IthasbeencalculatedforStraussIsrael,StraussCoffeeandSabra,

thethreeproductioncompaniesdeliveringoutputthatcanbemeasuredintons.Thesecompaniesrepresentover97%of

Strauss'senergyconsumption.Theratioincludesallenergysourcesattherelevantsites.

Notes: EnergyintensityincreasedduetotheadditionofoneplantinGermanythatmanufacturesinstantfreeze-driedcoffee.

Althoughresponsibleforonly2%oftotalproductionvolumes,energyconsumptionisalmost10%oftotalconsumption

forStraussGroup.Duetothenatureofthefreeze-dryprocess,allenvironmentalimpactsaremuchhigherthanother

manufacturingoperationsintheGroup.Wecontinuetoanalyzetheseimpactsindetail,includingLCAanalysesperformedon

coffeeproductsin2013,toidentifyopportunitiestoreduceimpacts.

G4-EN8 Water consumptionWater withdrawal All figures in cubic meters (m3)

2010 2011 2012 2013 Change from 2012 (%)

Totalwaterwithdrawnfrommunicipalwater

suppliesorotherwaterutilities

N/A N/A N/A 1,635,699

Totalwaterwithdrawnfromgroundwater N/A N/A N/A 85,828

Total water withdrawal 1,206,436 1,438,678 1,506,410 1,721,527 14%

Water intensity per ton of production 3.05 3.32 3.28 3.54 8%

Water intensity calculation

Ourwaterintensityratioiscalculatedpertonofproduction.IthasbeencalculatedforStraussIsrael,StraussCoffeeandSabra,

thethreeproductioncompaniesdeliveringoutputintons.Thesethreecompaniesrepresentover99%ofStraussGroup'swater

consumption.

Notes:

Absolutewaterconsumptionincreasedduetoadditionofsites–seenotetoenergyconsumptionabove.Similarly,water

intensityincreased.OurGermancoffeesiteconsumed13%ofthetotalGroupwaterconsumptionin2013,whiledeliveringonly

2%oftotalproductionvolumes.

G4-EN15 Greenhouse gas emissions (Scope 1) /G4-EN16 Greenhouse gas emissions (Scope 2)Greenhouse gas emissions All figures in tons CO2e

2010 2011 2012 2013 Change from 2012 (%)

Direct greenhouse gas emissions (Scope 1)

NaturalGas 23,197 22,278 23,299 32,712 40%

FuelOil 10,573 10,990 12,620 10,463 -17%

DieselFuel 6,990 7,276 7,234 6,914 -4%

Ethanol 51 83 89 38 -57%

LPG 18,653 18,821 18,279 19,352 6%

Gasoline 9,482 8,282 9,816 9,912 1%

Coffeebiomass 0 0 0 0 0%

Total direct greenhouse gas emissions 68,946 67,730 71,337 79,392 11%

Indirect greenhouse gas emissions (Scope 2)

Electricitypurchasedfromgrid 85,958 82,843 88,432 82,168 -7%

Total greenhouse gas emissions

(Scope 1 & 2)

154,904 150,573 159,769 161,560 1%

Basis for reporting on greenhouse gas emissions

GreenhousegasesincludedinthecalculationofCO2eareCO2,CH4andN2O.FuelemissionfactorsaretakenfromIPCC

EmissionsFactorDatabase.ElectricityemissionsfactorsforIsrael,GermanyandRomaniaaretakenfromthenationalelectricity

grids.AllotherelectricityemissionsfactorsareaspertheGHGProtocol.IsraelemissionsusedtheElectricityCompanypublished

ratesforthereportingyear.Prioryears2010–2011havebeenrecalculatedtoreflectthis.

Notes: AbsoluteGHGemissionsincreasedduetoadditionofsites–seenotetoenergyconsumptionabove.Similarly,GHG

emissionintensityincreased.OurGermancoffeesitegenerated7.4%ofthetotalGroupGHGemissionsin2013,whiledelivering

only2%oftotalproductionvolumes.

| 9998 |

G4-EN20 Ozone depleting substancesG4-EN21 Air pollutants / G4 EN22 Wastewater pollutantsEmissions of ozone depleting substances (ODS)

All figures in kg

2010 2011 2012 2013 Change from 2012 (%)

Emissionsofozonedepletingsubstances

(inc.R-22,507,407candR410-A)

6,068 15,791 7,023 13,296 89%

Emissions of air pollutants (NOx, SOx and PM)

All figures in tons

2010 2011 2012 2013 Change from 2012 (%)

NOx(nitrogenoxides) 93 92 139 110 -21%

SOx(sulphuroxides) 138 132 166 151 -9%

PM(particulatematter) 28 27 22 26 16%

Total emissions of air pollutants 259 251 327 286 -12%

Wastewater pollutants All figures in tons

2010 2011 2012 2013 Change from 2012 (%)

TSS(TotalSuspendedSolids) 721 1,921 921 662 -28%

COD(ChemicalOxygenDemand) 2,656 1,368 2,414 2,284 -5%

BOD(BiologicalOxygenDemand) 1,489 1,370 1,128 1,063 -6%

Total wastewater pollutants 4,866 4,658 4,463 4,009 -10%

G4-EN23 Effluents and wasteTotal amount of hazardous and non-hazardous waste

All figures in tons

2010 2011 2012 2013 Change from 2012

(%)

Percentage of total

waste 2013

Reuse 42,016 41,932 47,728 54,198 14% 73%

Recycling 4,781 14,095 9,629 7,638 -21% 10%

Landfill 14,857 14,824 15,367 12,374 -19% 17%

Hazardouswastetosafelandfill 3.76 1.03 3.74 47.65 1174% 0.1%

Total amount of hazardous and

non-hazardous waste

61,658 70,852 72,728 74,257 2% 100%

Explanation for increase in hazardous waste

TwoStraussCoffeesites(NovaandSantaLuzia)areresponsiblefor23tonsoftheincreaseinhazardouswaste,asthey

completedaone-timeclean-upofsewagetreatmentplantsandtheadditionofanewsiteinGermanyreported3tonsof

hazardouswaste.

FP1 Procurement practicesInIsrael1,435ofatotal3,272supplierssignedStraussIsrael'sSocialCharter(44%).Webelievethisrepresentsmorethan50%

ofourpurchasingvolume.

FP2 Procurement practicesCoffee:In2013,6%ofourtotalcoffeeprocurementwassustainablecoffeecertifiedby4C.

Cocoa: InStraussIsrael,100%ofcocoarequirementsarepurchasedfromsupplierscertifiedtoarecognizedstandard.59%of

MaxBrenner'scocoasupplyisprocuredfromsustainablesources(throughtheBarryCallebautQualityPartnerProgram(QPP)

andtheBiolandsproject.

G4-LA12 Diversity and equal opportunityEmployee diversity: Gender 2012 2013

Male Female Male Female

Seniormanagement 67% 33% 73% 27%

Middlemanagement 62% 38% 61% 39%

Non-management 56% 44% 58% 42%

Total employees 57% 43% 59% 41%

G4-EN18: Greenhouse gas emissions intensityGreenhouse gas emissions intensity All figures in tons CO2e per ton of production

2010 2011 2012 2013 Change from 2012 (%)

Scope1 0.153 0.156 0.151 0.159 6%

Scope2 0.187 0.191 0.175 0.164 -6%

Total greenhouse gas emissions intensity 0.340 0.350 0.326 0.323 -1%

Greenhouse gas emissions intensity calculation

OurGHGemissionsintensityratioiscalculatedpertonofproduction.IthasbeencalculatedforStraussIsrael,StraussCoffeeand

Sabra,thethreeproductioncompaniesdeliveringproductionoutputintons.Thesethreecompaniesrepresent97%ofStrauss

Group'sGHGemissions.Theratioincludesemissionsfromallfuel,electricityandrenewableenergysourcesattherelevantsites.

Thesmallreductioninemissionsintensityreflectsslightchangesindirectenergymixin2013–increasedproportionofnaturalgas.

| 101100 |

Employee diversity: Age Group

2012 2013

Below age 30

Age 30-50

Over age 50

Below age 30

Age 30-50

Over age 50

Seniormanagement 2% 71% 27% 2% 58% 40%

Middlemanagement 9% 79% 12% 41% 53% 6%

Non-management 36% 51% 13% 50% 40% 10%

Total employees 32% 55% 13% 49% 42% 9%

Employee diversity: Minority Groups

2012 2013

Male Female Total Male Female Total

Seniormanagement 5% 9% 6% 9% 15% 10%

Middlemanagement 3% 1% 2% 4% 3% 4%

Non-management 14% 12% 13% 12% 10% 11%

Total employees 12% 10% 11% 10% 9% 10%

Employee diversity: Disabled employees

2012 2013

Male Female Total Male Female Total

Seniormanagement 2.3% 0.0% 1.5% 2.9% 0.0% 2.1%

Middlemanagement 0.5% 0.3% 0.4% 1.7% 0.7% 1.3%

Non-management 1.4% 1.0% 1.2% 1.8% 1.4% 1.6%

Total employees 1.2% 0.9% 1.1% 1.8% 1.3% 1.6%

G4-LA13 Equal remuneration for women and men Ratio of basic salary men to women (% reflects the level of women salaries in proportion to men salaries)

2012 2013

Senior management

Middle management

Non-management

Senior management

Middle management

Non-management

Brazil Notreported Notreported 82% 92% 89% 100%

Europe Nofemales 83% 88% Nofemales 74% 83%

Israel 88% 90% 78% 77% 83% 81%

U.S. 95% 108% 89% 58% 81% 87%

Strauss total 91% 93% 84% 76% 82% 87%

Notes: Coffeetogoinformationwasnotavailablebyemployeecategory.Thishasbeenestimatedbasedon2012figures.Russia

andYotvatasitesareexcludedfromthisdataasinformationwasnotavailable.

G4-LA1 Labor practices and decent workNew hires by age in 2013

2012 2013 Rate of new hires in 2013 (males)

Rate of new hires in 2013 (females)

Total new hire rate (%)

Male Female Male Female

Belowage30 1,272 975 1,585 1,115 12.62% 8.88% 21.50%

Age30-50 837 513 972 554 7.74% 4.41% 12.15%

Overage50 50 23 77 42 0.61% 0.33% 0.95%

Total employees 2,159 1,511 2,634 1,711 20.98% 13.63% 34.60%

New hires by region in 2013

2012 2013 Rate of new hires in 2013 (males)

Rate of new hires in 2013 (females)

Total new hire rate (%)

Male Female Male Female

Brazil 955 519 1,116 468 8.89% 3.73% 12.62%

Europe 219 112 244 153 1.94% 1.22% 3.16%

Israel 757 687 955 813 7.61% 6.47% 14.08%

U.S. 228 193 319 277 2.54% 2.21% 4.75%

Total employees 2,159 1,511 2,634 1,711 20.98% 13.63% 34.60%

Employee turnover by age in 2013

2012 2013 Rate of turnover in 2013 (males)

Rate of turnover in 2013 (females)

Total turnover rate (%)

Male Female Male Female

Belowage30 1,343 974 972 1,137 7.74% 9.06% 16.80%

Age30-50 907 728 722 987 5.75% 7.86% 13.61%

Overage50 70 91 124 205 0.99% 1.63% 2.62%

Total employees 2,320 1,793 1,818 2,329 14.48% 18.55% 33.03%

Employee turnover byregion in 2013

2012 2013 Rate of turnover in 2013 (males)

Rate of turnover in 2013 (females)

Total turnover rate (%)

Male Female Male Female

Brazil 1,059 504 384 821 3.06% 6.54% 9.60%

Europe 253 195 222 135 1.77% 1.08% 2.84%

Israel 799 917 921 1,138 7.34% 9.06% 16.40%

U.S. 209 177 291 235 2.32% 1.87% 4.19%

Total employees 2,320 1,793 1,818 2,329 14.48% 18.55% 33.03%

| 103102 |

G4-LA6 Occupational health and safety: Injuries Injuries Injury rate Rate change

in 2013 (%)2011 2012 2013 2011 2012 2013

Brazil 210 182 231 5.06 4.39 5.21 0.82

Europe 17 24 17 1.61 2.37 1.75 -0.62

Israel 202 358 254 3.47 6.33 4.71 -1.62

U.S. 35 17 27.00 3.70 1.74 2.53 0.79

Strauss Group 464 581 529 3.88 4.93 4.46 -0.47

Lost days Lost days Lost day rate Rate change in 2013 (%)2011 2012 2013 2011 2012 2013

Brazil 3,701 8,520 6,595 89.25 205.45 148.77 -56.68

Europe 283 342 633 26.77 33.76 65.12 31.36

Israel 1,699 3,744 3,117 29.23 66.16 57.79 -8.37

U.S. 512 181 510 54.07 18.56 47.80 29.23

Strauss Group 6,195 12,787 10,855 51.78 108.42 91.48 -16.94

Absenteeism Absenteeism days Absenteesim rate Rate change in 2013 (%)2011 2012 2013 2011 2012 2013

Europe 10,879 9,953 10,444 4.12% 3.93% 4.30% 0.37%

Notes:

•Injuriesarethosewhichincurlostworkdays.Minorinjuriesarenotnoted.

•Injuriesarecalculatedper100employees.

•Datasplitbygenderisnotavailableformostlocationsatthistime.

•AbsenteeismdaysarenotrecordedinStrausslocationsexceptEurope.

•DataforEuropeincludesalllocationsexceptRussiaasdetailsareunderreview.

•NospecificoccupationaldiseasesarenotedwithinStraussGroupandthereforenosuchdataisavailable.

G4-LA11 Training and educationEmployees receiving performance reviews 2013

Male Female

Seniormanagement 14 5

Middlemanagement 352 248

Non-management 2,887 2,566

Total by gender 3,253 2,819

Total by group 6,071

Percentage of total employees 75%

Note: AllStraussGroupcompaniesaroundtheworlddonotmaintainrecordsofnon-managementperformancereviews,

althoughinmostcases,theseareperformedannually.Inseveraloperations,employeereviewsreachedcloseto100%.

Dataaboveincludesestimatednon-managementevaluationrates.

| 105104 |

UN Global Compact TheUNGlobalCompact(UNGC)isastrategicpolicyinitiativeofthe

UnitedNationswhichencouragescompaniesaroundtheworldtoadhere

totenprinciplesofresponsiblebusinessrelatingtohumanrights,labor

standards,environmentalprotectionandanti-corruption.StraussGrouphas

participatedintheUNGCsince2008.

Statement of continued support for the UN Global CompactOnbehalfofStraussGroup,Ireconfirmourcontinuingparticipationin

theUNGlobalCompact.Wecommittoupholdingandpromotingthe

tenprinciplesoftheGlobalCompactandsupportingthebroadsocial,

humanitarianandenvironmentalgoals.Wereconfirmourintentionto

maintainouradherencetotheseprinciplesandcontinuetopromotethem

withinourcompaniesandwithourbusinesspartners.Weintendtocontinue

toreportonourprogresswithinthecontextofourannualsustainability

reporting.Oursustainabilityreportsareavailableonourwebsiteforthe

benefitofallourstakeholders.

Gadi Lesin

PresidentandCEO

StraussGroup

June2014

UN Global Compact Index and GRI cross-reference tableGlobal Compact Principles GRI G4 Aspects /

Disclosures

1 Businessesshouldsupport

andrespecttheprotectionof

internationallyproclaimedhuman

rights.

HumanRightsAspects RespectinghumanrightsatStraussisacorevalue.

Weconductourbusinessresponsiblyaccordingto

thehighestethicalstandards,whichencompass

respectforallhumanbeings,andacknowledgement

oftheirrights.Weworkwithsuppliersinoursupply

chaintoensuretheyareawareofourstandards

relatingtohumanrightsandencouragethemto

adoptsimilarstandards.

2 Businessesshouldmakesurethat

theyarenotcomplicitinhuman

rightsabuses.

HumanRightsAspects

LocalCommunities

Aspects

3 Businessesshouldupholdthe

freedomofassociationandthe

effectiverecognitionoftherightto

collectivebargaining.

G4-11

FreedomofAssociation

andCollective

BargainingAspect

Labor/Management

RelationsAspect

Werespecttherightsofemployeestofreedomof

associationandcollectivebargaining.Wemaintain

acollaborative,openandpositiverelationshipwith

employeesandaddressissuesrelatingtotheirrights

inapositivemanner.

4 Businessesshouldsupportthe

eliminationofallformsofforcedand

compulsorylabor.

ForcedandCompulsory

LaborAspect

Wedonotengageinanypracticewhichcould

beconstruedasforcedlabor.AllStraussGroup

employeesareemployedwithintheprovisionsofthe

lawandoftheirownfreewill.

5 Businessesshouldsupportthe

effectiveabolitionofchildlabor.

ChildLaborAspect Werespectandsupporttherightsofallchildren,

andwearecommittedtopreventingharmand

activelysafeguardingtheirinterests.Wedonot

employchildreninanypartofourbusiness.

6 Businessesshouldsupportthe

eliminationofdiscrimination

inrespectofemploymentand

occupation.

G4-10

LaborPracticesand

DecentWorkAspects

Wemaintainapolicyofequalopportunity

andmaintaininclusivepracticesfornewand

currentemployeesinallmattersrelatingtotheir

employmentwithStraussGroup.

7 Businessesshouldsupporta

precautionaryapproachto

environmentalchallenges.

EnvironmentalAspects Weadoptenvironmentally-orientedpracticesin

allouroperationsandhaveestablishedtargetsto

reduceourimpactsontheenvironment.Weaimto

drivesuchpracticesthroughoursupplychainand

worktoidentifyfoodtechnologiesthatsupport

efficientfoodsupplyandareductioninfoodwaste.

8 Businessesshouldundertake

initiativestopromotegreater

environmentalresponsibility.

EnvironmentalAspects

9 Businessesshouldencourage

thedevelopmentanddiffusion

ofenvironmentallyfriendly

technologies.

EnvironmentalAspects

10 Businessesshouldworkagainst

corruptioninallitsforms,including

extortionandbribery.

Anti-CorruptionAspect

PublicPolicyAspect

Wearecommittedtobehavingwithintegrityandact

againstallformsofcorruption.

Thank you!ThankyoufortakinganinterestinourSustainabilityReportand

wesincerelyaskyoutoconsiderprovidingyourfeedbackwhich

willhelpusimprovetomeetyourneedsmoreeffectively.Please

alsovisitourwebsite,www.strauss-group.com,whereyouwillfind

additionalinformationandourCorporateResponsibilityblog,

whichisupdatedregularly.

Weacknowledgethehardwork,passionandcommitment

ofallStraussemployeeswhocontributetoourbusinessand

sustainabilityperformance,andtoover100employeeswhohave

specificallycontributedcontentforthisSustainabilityReport.

Credits:

Wewouldliketodeeplythanktheprofesionalswhoworked

withusonthisreport,gatheringandprocessingdata,and

producingthereport:

BeyondBusinessLtd(contentandcopy)

SherConsultants(environmentaldata)

StudioMerhav(graphicdesign)

LindaGitter(Translationandediting)

ErezBenShahar(Photography)

Wewelcomeyourcomments,queries,

suggestionsandgeneralfeedbackonthisreport.

Wepromisetorespond.

Pleasecontactusat:

DanielaPrusky-Sion,

CorporateResponsibilityManager

StraussGroup

Hasivim49,PetahTikvah,49517Israel

daniela.sion@strauss-group.com

Feedback on this Report

www.strauss-group.com