Strauss reveals findings from probe into Salmonella incident

An investigation into Salmonella contamination at Strauss in Israel has found not all food safety procedures were consistently followed but no direct evidence that the issues led to the incident.

A committee was created after the Salmonella chocolate recall and temporary plant closure in 2022 to investigate the conduct of the company and its officers. It examined administrative procedures and processes, controls, and the corporate governance of the company across almost 50 meetings. The maximum claimable damage caused to the business as a result of the incident was estimated by the committee at NIS 293 million (U.S. $82 million).

The Board of Directors at Strauss Group adopted the committee’s findings, conclusions, and recommendations. This includes a proposed settlement agreement, in which the insurers agreed to pay the company NIS 27 million (U.S. $7.5 million).

Experts concluded that administrative processes in the company and its procedures prior to the event were appropriate, and sampling plans did not deviate from the law or from reasonable professional standards.

Committee’s assessment
Several flaws were noted in the conduct of employees in management and in quality at Strauss Israel. They concerned non-compliance and deficiencies in control and oversight on the implementation of procedures relating to food quality and safety. However, there was no proof of a causal link between these acts or omissions and the damage.

During routine tests for Salmonella at the chocolate factory in Nof Hagalil in April 2022, a positive was found. As a result, the company initially recalled all chocolate products manufactured at the site from Feb. 20, 2022, onwards. In late April, the recall was expanded to include all products from the site. The company also stopped chocolate production at the plant and blocked distribution of products manufactured close to the date of positive results.

In April, approval for the factory was suspended for three months or until deficiencies were corrected by Israeli authorities. The shutdown lasted for about four months, until August, when production resumed gradually for inventory. In November, the company began marketing chocolate products manufactured at the factory. After the recall, several legal proceedings were filed against the company.

Findings of the committee revealed doubt about best practices and the effectiveness of coliform testing as an indicator for the presence of Salmonella. Experts also said it might have been appropriate to conduct Salmonella tests more frequently for final products.

Understanding importance of hygiene
There was no proactive discussion on perception of the risk of pathogen contamination in chocolate among professionals at the factory. Experts said they should have actively examined whether there was a need to change the risk assessment from time to time.

Complaints, and deviations identified as a result, were not brought to the attention of the CEO of the confectionery division, who is the person at Strauss Israel responsible for the factory’s operations.

There was no strict adherence to all procedures regarding quality and food safety. This includes a lack of control and supervision after performing the required tests, their results, and follow-up; absence of effective control systems that ensure handwashing before entering production areas; and inadequate handling of the possible consequences of pigeon entry into the factory in terms of microbial contamination.

The committee said an organizational culture developed that did not attribute the appropriate weight to the risks of microbial contamination and hygiene in daily operations. Factory management and quality staff at Strauss Israel should have devoted more attention and resources to supervising and controlling related procedures. However, efforts of employees and managers to investigate the event and restore the plant’s operations deserve praise.

Alongside the disclosure request and the committee’s report, a request for approval of a class action lawsuit against the company is pending. The parties have agreed to engage in mediation.

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