Sinisa Danicic, GM at Strauss Adriatic - In 2016, we will fight against unfair competition

Source: eKapija Monday, 14.03.2016. 13:32
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(Sinisa Danicic) In 2016, Strauss Adriatic is planning to strengthen its position of its leading brands , doncafe" and "C Kafa" at Serbian market and to continue struggle against unfair competition. Siniša Danicic, GM at Strauss Adriatic, in his interview with eKapija says past business year was full of challenges, primarily because of increasing volume of raw coffee but points out that company brands in 2015 recorded good results.

- Business year at Strauss Adriatic completed successfully. Our Simanovci-based plant is one of the best equipped factories in this part of Europe. We have the most advanced manufacturing technology, as well as from closed "Aroma Expert" system, which keeps flavor and freshness of coffee until the opening of the bag. In 2016, our product portfolio will become richer for some new flavors, which will certainly make consumers happy- Danicic says.

Having in mind that the "C Kafa" this year is celebrating its 40th anniversary, Danicic points out that behind every successful brand there are quality and consumers’ trust. It was on this basis that Strauss Adriatic built its leading position in Serbia, which is planning confirm in 2016.

- Last year was full of challenges due to increasing unfair competition in the form of small coffee roasters across the country which use undeclared surrogates in their products and increasing volume of raw coffee smuggling, which affects operations of all major manufacturers at the market. However , our business years at Strauss Adriatic has been successful and crowned with the award for "Doncafé " campaign," Good morning, jazz fans " not only by experts, but what is valuable to us, with our consumers’ thrill.

eKapija: Which of your brands singled out by results 2015 and did the most important brands maintained their leadership position?- Our two brands - "Doncafé" and "C Kafa" in 2015 recorded good results. The highest growth was recorded in "Doncafé " in HoReCa sales channel, which shows that in this, in many ways specific sales channels, with top quality products domestic brand can be strong competition for foreign ones. As for traditional coffee, "Good morning, jazz fans" campaign moved borders in advertising, not only in coffee but at entire domestic market which is confirmed with extraordinary effects on the brand indicators.
eKapija: Are you planning new investments and further development of products and brands in Serbia?

- This is the only way to move forward and achieve more. We are not planning new brands , but to strengthen the existing ones. We have two strong brands with a very clear strategy and specific but completely different and relevant positioning and it is extremely important for success.

eKapija: Where do you export mainly and whether increase in exports is one of the priorities in 2016 ?

- So far, we have mainly exported to Western European market. Export is important in our strategy but priority is primarily strengthening of local brands.


eKapija: Since "C Kafa" is celebrating this year celebrates its 40th anniversary , what in your opinion makes one brand competitive and to what extent is customer loyalty important for product success?

- This year the "C Kafa " is celebrating its 40th birthday and so we give all our customers over coffee in specially designed packages jubilee . " C coffee" is more than coffee, it is the hallmark of generations and a link between them. It is quality that lasts and with true value, which is transferred to new generations in unchanged quality with carefully selected grains.

eKapija : What is the current share of Strauss Adriatic at Serbian coffee market ? How do you plan to strengthen your position in domestic market and which are the biggest business challenges in Serbia?

-One-third of the total coffee drunk in Serbia is produced in our factory in Simanovci . We are planning to strengthen market position through persistent struggle against all the ones that degrade market and category , which represents the biggest business challenge as well as with dedicated work on strengthening the brands ' doncafe "and" C coffee " through numerous activities.


eKapija: In Serbia, many households still opt for traditional coffee. What were the reactions of consumers to new products and to what extent is our market ready for a change?

- The fact that our customers mainly consume traditional coffee does not mean they are not open to innovation in that coffee which they already consume . Our holiday editions of traditional coffee in limited series with flavors of chocolate and hazelnut recorded excellent results in just a few months which are for how long each one of them was on the shelves in stores. Specificity of domestic market is that consumers like a real, authentic coffee taste. It is also shown with a very small share of instant coffee as well as decline in consumption of the product type 2in1 and 3in1 in 2015.

eKapija: How significant are investments in technology for coffee producers and are you planning to have new investments in 2016 ?

Our Simanovci-based plant is one of the best equipped coffee factories in this part of Europe. We have the most advanced manufacturing technology, as well as indoor " Aroma Expert" system which keeps flavor and freshness of coffee until the opening of the bag . In this sense, we are not planning new investments in production this year, but certainly that our portfolio will become richer for a new taste, which will surely please our consumers.

K.M.


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