Strauss Group based in Petach Tikva, is entering $40 billion coffee market globally. They are planning to be popular as other major coffee brands in the market. The company was founded in 1936 by the same family who is operating currently. The grandparents of the current owner escaped from Germany and started their dairy; where they started it selling cheese, milk and other dairy products. Later it cooperated with Unilever ice cream and Danone in yogurt. In 1997, the company bought one of the top chocolate and coffee company, Elite Industries. In 2004 the blended these two companies. This year revenues are expected to be $1.8 billion.
About ten years ago, the company stop depending on local market where the markets are saturated; the company adopted a strategy of acquisitions in different countries, where they did well. Strauss Group also started it operations in Eastern Europe, Ukraine and even Brazil, where they have become the second major player in the coffee market.
There are also other major multinationals in the global market like Nestle and Kraft Foods but Strauss lead the roast and ground coffee market according to CEO, Erez Vigodman. Strauss merged with Lima Brothers on 50-50 venture. In Eastern Europe it has established its own local office.
Previous year half of Strauss’s revenue of $1.55 Billion where net profit was $72 million came from coffee. Sales in coffee rose 23% previous year, which was twice as company projected. The reason Vigodman explains is the living standard in Romania, Serbia, and Ukraine has led to consume more coffee.
The largest Strauss market is outside Israel is Brazil, Russia is second, where it merged with Cosant Enterprises for $93 million, which is expected to double the sales in Russia. The company is approaching ...