Strauss Adriatic d.o.o., the Serbian coffee roasting division of Israel’s Strauss Group, will be acquired by Atlantic Grupa for €40.5m ($43.6m) in an effort to strengthen its coffee business.
Upon merger approval by the Serbian Competition Agency, Strauss Adriatic’s packaged retail coffee brands Doncafe and C kafa would join the coffee division of Atlantic Grupa.
Atlantic Grupa, a distributor of fast-moving consumer products based in Zagreb, stated that the agreement also involves the transfer of Strauss Adriatic’s production facility near Belgrade and its 220 employees.
Atlantic Grupa stated that it will continue to make “considerable investments” in its coffee business in order to expand its product line and strengthen its presence in the retail and foodservice channels.
Currently, the group operates the packaged coffee brands Grand kafa, Bonito, and Barcaffé in Serbia, as well as the four-strong Ziggy’s Coffee café chain in Zagreb, Croatia.
“Atlantic Grupa is the largest coffee producer in Southeast Europe and the market leader, and this acquisition aligns perfectly with our strategic objective of bolstering our core business.
Upon merger approval, I will be pleased to extend a cordial welcome to Doncafé, C kafa, and new colleagues joining our system. Mate teti, Vice President of Strategic Categories, Coffee and Snacks at Atlantic Grupa, remarked, “I am excited by all the opportunities for our shared growth and expansion.”
Strauss Coffee of Petah Tikva reported double-digit growth in Eastern Europe.
In 2022, Atlantic Grupa’s revenue increased by 12% to reach KN 6.4 billion ($914 million). The coffee division of the group was cited as a top performer, with 16.2% growth in sales, while Serbia was cited as the group’s top distribution entity, with 15.5% growth.
In addition to its coffee division, Atlantic Grupa has strategic business divisions specializing in beverages, munchies, savory spreads, pharmaceuticals, and donat (mineral water). The group has distribution facilities in Slovenia, Macedonia, Austria, and Russia, in addition to Croatia and Serbia.
Serbia, like many Balkan nations, has a robust coffee culture at home, and coffee is an integral element of traditional Serbian hospitality.
The Israeli Strauss Group, which has been active in Serbia since 2002, asserts that Serbians are the largest coffee consumers in Eastern Europe and that almost 90 percent of the market is dominated by traditional roast and powdered coffee.
The 137-strong Serbian branded coffee shop market encompasses only four domestic brands, anchored by Kafeterija and Hleb & Kifle, as well as the international chains McCafé and Starbucks, which operate 15 and five outlets, respectively.