Strauss Group’s coffee division contributed 51% of total revenues last year, led by 43% sales growth in Brazil and double-digit growth in Eastern Europe
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Strauss Coffee distributes 16 packaged coffee brands, including Elite Coffee (pictured) | Photo credit: Strauss Coffee
Strauss Group has cited the performance of its international coffee business as driving its 2022 revenue growth.
The Petah Tikva-based food and beverage manufacturer achieved 6.5% group sales growth to reach NIS 9.5bn ($2.6bn) in the 12 months ended 31 December 2022.
Following a major confectionery recall in April 2022, Strauss Group reported a 73% fall in net profit last year to NIS 174m ($47.9m). The food and beverage manufacturer also cited the rising prices of green coffee, raw milk, packaging materials and energy as negatively impacting its profit margins.
Strauss Group’s coffee division achieved 37% year-on-year sales growth to reach NIS 4.8bn ($1.3bn), driven by 45% revenue growth in international markets.
Strauss Coffee’s sales in Brazil, where Strauss Group has a 50% share in the Três Corações joint venture (3C), grew 43% to NIS 2.66bn ($732m). Additionally, Strauss Coffee reported double-digit growth in Eastern Europe where it has a presence across Russia, Ukraine, Poland, Romania and Serbia.
International markets contributed 83% of Strauss Coffee’s 2022 sales.
In its native Israeli market, Strauss Coffee sales grew 7% year-on-year to NIS 778m ($214m) following increased sales in retail and out-of-home channels.
“Strauss delivered growth that is the result of the strong performance by the international coffee business, Strauss Water, the food division, the dairies and salty snacks in Israel. In Q4 2022, and even more so as we entered 2023, the Group continued to implement its strategy, with three managerial focus areas: Recover, Transform, Perform. In November 2022, we signed an update to the partnership agreement in Brazil and its extension for another 20 years,” said Shai Babad, CEO, Strauss Group.
Founded in 1933, Strauss Group is the largest food and beverage manufacturer in Israel.
Strauss Coffee distributes 16 packaged coffee brands, including Elite Coffee and Beanz in Israel, Ambassador in Russia and Ukraine and Fort and Pedro’s in Poland.
The coffee division contributed 51% of Strauss Group’s 2022 revenues. The food and beverage manufacturer’s other segments include Strauss Water, which achieved 7% sales growth to reach NIS 785m ($216m), and Strauss Israel and International Dips & Spreads which saw revenues fall 39% and 9% respectively.