The biggest rebranding on the coffee market, carried out in 2008with a 6 million-euro promotional budget, which turned Elita intoDoncafe, has yet to reap its benefits: Israeli group Straussreported a market share decline in 2009 and a slowdown in its salesrise, to 3.3%.
The company's sales reached 283 million RON (66.8 million euros)last year. The euro-denominated sales dynamics was negative, withthe producer seeing its sales down by 8.7 million euros against2008.
In mid-2008, the Israeli group had a 33% share of the coffeemarket, where it battles for the no. 1 spot with American-heldKraft Foods, and an accelerated growth target for its business forthe next three to five years, to a 50% market share. Around 16months from the start of the rebranding project, the company'slocal business is not seen in a favourable light in the annualreport of the Strauss Group.
"Our market share saw a slight decline in Israel, Romania, andSerbia. Weak performance was recorded in Romania and Serbia," readsthe report.
Strauss Romania representatives did not wish to reveal thecompany's current market share, but specified the decline wasrecorded on the coffee mix segment, which the company entered whenthe rebranding started, and on the low-priced products segment.
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