Coffee producer Elite Romania last year enjoyed net turnover of 2,262 billion ROL (55.8 million euros), around 24% higher in ROL compared with 2003, according to Eli Rachmut, Elite's general manager. In euros the company's sales rose by 15%, year-on-year.
With about 50% of the packaged coffee market, Elite is the biggest player on the Romanian market, followed by Kraft Foods (Jacobs, Nova Brasilia), Tchibo Romania (Tchibo, Eduscho), Nestle (Nescafe), Panfoods (Amigo), Alka (Alka) and Romaqua (Metropolitan).
"We want to retain our leading position and market share so we are going to invest in raising our coffee production capacity. Last year we invested several million euros in technology, and for 2005 and 2006 we have an investment plan of about 2 million euros per year, which will be spent on equipment for the coffee factory in Bucharest," said Rachmut.
Mid last year the company announced the closure of its factory in Bulgaria and the expansion of its production facility in Romania, which will also supply the Bulgarian market.
The factory in Bucharest has 600 employees.
Rachmut added that the price of green coffee on international markets rose last year by 50%, which threatened to push the price of packaged coffee higher.
"Elite cut coffee prices by about 7-10% following the 20% decrease in coffee excises starting in 2005, but the 50% surge in green coffee prices on international markets could lift prices again. Thanks to our stocks of raw materials we have been able to continue our activity within the same parameters, but if green coffee prices do not fall we will be forced to raise prices for the end product," explained Rachmut.
Estimated at around 100 million euros per year, Romania's consumption of packaged coffee has grown over the last two years following the move by consumers from loose coffee to packaged coffee.
Consumption is still low, however, when compared with the European average, which is in part due to the level of excises on imports of coffee, which are still among the highest in Europe. Excises will be eliminated by 2007.
Elite Romania, a branch of the Israeli-held company Elite International, entered the Romanian market in 1995, building a factory and setting up a countrywide sales network.
In Romania the company sells packaged coffee, cappuccino, instant frappe, instant chocolate, and, as of last year, seeds and roasted peanuts.
"This year, we want to enter another market segment on the same food market, but I cannot give you any further details now," Rachmut said.
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