After a name change from Elite to Strauss, Matanya Schwartz, manager of the coffee company, says the focus will be on brands, whilst its market strategy will target the launch of premium brands from the company's international portfolio.
"We will invest 7m euros every year in our brands, in marketing and research. We are a company that is strongly anchored to the market and this is why the share of marketing expenses in turnover (10%) tops those of other companies, whose expenses usually revolve around 5-7%," states Schwartz. At present, Strauss operates domestically with Elita, Selected and Fort, brands that mainly compete with Jacobs and Tchibo.
Elita was developed in Romania and is exported to several markets in the region. It is currently one of the best-selling coffee brands in Romanian retail, according to Nielsen data.
The battle for the top position on the domestic coffee market is tight and is being fought between two companies with international operations, Strauss and Kraft Food.
Strauss Romania's market share ranges between 40 and 44%, according to the company's manager. Last year, Strauss Romania logged sales worth 76m euros, up around 11% year-on-year.
Israeli group Strauss owns a plant in Bucharest, where 12,000-13,000 tonnes of coffee are produced annually. Around 10-15% of Romanian production is delivered on the group's markets in the Balkan region.
Over the past two years, the company has restructured its portfolio and Schwartz says its plans are to target just the coffee market in the coming period.
The company's plans also envisage expansion on the HoReCa segment, which could engender higher profitability.
Schwartz expects the Romanian coffee market to register slower growth this year and Strauss Romania to see its sales rise by around 6-7% against 2007, in line with market growth.
Schwartz believes coffee consumption may rise due to the falling consumption of alcoholic drinks domestically. Another factor that could have a positive impact on the market is the Romanian consumers' changing lifestyle, as people become more active.
Schwartz has been in charge of Strauss Romania's operations for a year and a half.
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