The biggest rebranding on the coffee market, carried out in 2008 with a 6 million-euro promotional budget, which turned Elita into Doncafe, has yet to reap its benefits: Israeli group Strauss reported a market share decline in 2009 and a slowdown in its sales rise, to 3.3%.
The company’s sales reached 283 million RON (66.8 million euros) last year. The euro-denominated sales dynamics was negative, with the producer seeing its sales down by 8.7 million euros against 2008.
In mid-2008, the Israeli group had a 33% share of the coffee market, where it battles for the no. 1 spot with American-held Kraft Foods, and an accelerated growth target for its business for the next three to five years, to a 50% market share. Around 16 months from the start of the rebranding project, the company’s local business is not seen in a favourable light in the annual report of the Strauss Group.
“Our market share saw a slight decline in Israel, Romania, and Serbia. Weak performance was recorded in Romania and Serbia,” reads the report.
Strauss Romania representatives did not wish to reveal the company’s current market share, but specified the decline was recorded on the coffee mix segment, which the company entered when the rebranding started, and on the low-priced products segment.