Distributor of illy coffee brewing 40% growth

Pro Brands Distribution, distributor of Italian coffee brand illy on the Romanian market, which derives the bulk of its sales from around 600 restaurants and coffee shops, has recently entered the office segment, and says key accounts have fetched annual increases of up to 120%.
However, the company remains focused on the hotel, restaurant and catering segment, as a result of an increase in the number of coffee shops on this market. “The market is very dynamic. Lately, new brands have entered the market, with several coffee shops being launched, whilst many Romanian and foreign chains are expanding their networks. Consumers are becoming loyal to particular brands and take an interest in premium products,” says Mirela Ionescu, marketing manager of Pro Brands Distribution.
In 2004, Pro Brands Distribution split from Cristalex, one of the leading importers of spirits on the Romanian market, and signed partnerships with the producer of Dammann teas (recently taken over by illy) and Monbana hot chocolate.
The clients of Pro Brands Distribution include the Hilton hotel and the Romanian coffee shop network Turabo Cafe, as well as the hypermarket networks Metro Cash&Carry, Carrefour and Selgros.
Mirela Ionescu says the partnership with illy started as a result of a selection made by the Italian company on the domestic market, when it decided to enter Romania through a partnership with a local distributor, in 2003.
“I don’t think we will be able to maintain the same 80-90% growth rate over the next 5 years, because the market is becoming crowded,” adds Mirela Ionescu.
On the Romanian market, the illy brand competes with Julius Meinl, Lamaze and Espresso, the latter being brought onto the market by the sister-company of Top Brands Distribution. Kraft Foods and Elite, which hold the largest market shares in terms of key accounts, currently dominate the Romanian coffee market, however Mirela Ionescu does not believe these companies directly compete with illy coffee.