The drop posted by the local market of packaged coffee is likely to continue this year, the fourth in a row, at least for some producers. However, other coffee companies say the market will get better by the end of the year.
After a 20% plunge in 2002, the situation is not very likely to improve this year, either.
"Coffee sales will keep dropping, unless the excises are modified and this will boost the black market," said Simon Borwell, marketing and sales manager with Panfoods Romania, a member of the Brazilian group Iguacu.
Iguacu, producer of the Amigo brand, last year opened a plant of ground and roasted coffee, following a $2m investment.
"The coffee market evolution this year will depend on the way the Government will handle the problems faced by the Romanian coffee producers and importers. As I have said before, the very high taxation for coffee products has turned a regular foodstuff into a product that most Romanian consumers cannot afford," said Gabriel Sidere, advisor and general secretary of the Romanian Coffee Association.
Elite Romania aims to expand on the Romanian market, but not under the current conditions, according to the company's general manager Eli Rachmut.
Rachmut has also said that the Romanian market has a shot at recovery only if the excises go down and the price of bulk coffee increases.
In January/February, the market dropped 3% as compared to the year-ago period, according to a survey drafted by market research company GfK Romania.
The Romanian coffee market is estimated at some 100 million dollars annually. claudia.covaci@zf.ro
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