Amigo coffee approaches 30% market share

Panfoods Romania, owner of the Amigo coffee brand on the domestic market, estimates a 14% increase in this year’s volume of sales against figures for 2006, whereas the market for instant coffee may stagnate in 2007.
The Amigo brand reached a 27.3% share of the instant coffee market in January, up 2% against the first month of 2006, according to a study conducted by MEMRB Retail Tracking Services, as quoted by Panfoods. Amigo is currently the second-biggest brand in this sector, selling an estimated 2,800 tonnes a year (according to import-related data for 2006).
“The distribution system we created in 2002, when we set up our representative office in Romania, allowed us to gain wider coverage of the market and the effects remain apparent on our level of sales. This year, we also plan to diversify our portfolio by launching new products,” said Simon Borwell, sales & marketing manager of Panfoods Romania.
The company launched the instant coffee brand Amigo Premio last year, entering the premium segment of competitive coffee brands.
Panfoods plans to start distributing to other regional markets such as Bulgaria and the Republic of Moldova, whose market it has tested through exports.
“Having perfected our distribution system in Romania, we are now looking at other possible countries. However we remain focused on the Romanian market, where we believe we can established ourselves further,” added Borwell.
Borwell adds that promotion for the company’s products will be less aggressive compared with other competitors who also operate internationally.
Panfoods Romania, which is part of the Brazilian group Iguacu, specialises in the production of instant coffee and entered the market in 2002, a time when the Amigo coffee was adjusting its strategy of distribution in Romania.