Mihailo Stanisic, CEO of Strauss Adriatic Srbija: We are ready to invest in other sectors of the food industry

Mihailo Stanisic (Photo: Strauss Adriatic)

Raw coffee is delivered to Simanovci from Brazil, Colombia, Guatemala, Honduras, India, Uganda, Ethiopia, and Vietnam. After being roasted, this coffee is packaged using the Doncafe Aroma Expert system in order to preserve 1,000 aromatic components. The most modern factory in the region annually produces enough coffee to make 3,125,000 cups of this black drink. Moment, Strong, Minas, C kafa, Instant and Espresso brands have already found their way to the coffee lovers in Serbia, Slovenia, Bosnia-Herzegovina, Montenegro, Romania, as well as in the countries of western Europe.

Strauss Group has invested EUR 100 million in Serbia since 2003, and that Israeli company today has 240 employees in our country. Mihailo Stanisic, director general of Strauss Adriatic Srbija, speaks in an interview for eKapija about new products from Doncafe, possible investments in other sectors of the food industry, and Strauss' plans for the following period.

eKapija: Strauss has so far invested EUR 100 million in Serbia. Do you plan some new investments?

- We invested 0.5 million euros in up-to-date coffee grinders and technology in 2010 alone, with the aim of enhancing the quality and features of our coffee. We now take pride in the fact that two out of the total of five state-of-the-arts coffee mills in the world are in use at Doncafe factory in Simanovci. Besides, we have also introduced the Aroma Expert system, which guarantees the top quality of our coffee. We have managed to strengthen the second position in the Serbian market, and our mission is to become the No.1 in Serbia in the near future.

eKapija: What are the advantages of the modern coffee grinders that are in use at your factory since late 2010?

- The new Doncafe Aroma Expert system enables production of top-quality coffee within a completely closed system. It is unique because it does not allow coffee to get in touch with air, thus preserving the freshness and aroma of the coffee until the Doncafe packaging is opened. Thanks to the latest technology, coffee keeps over 1,000 aromatic components that develop during the roasting process and are set free through ultra fine coffee grinding. A confirmation of the quality of Aroma Expert is an irresistible scent one can smell when opening a bag with our coffee. These latest grinders for fine and ultra fine coffee grinding at our factory meet the global quality and food safety standards. Their capacity is 1,000 kilograms per hour and they make it possible for us to offer domestic consumers a coffee produced in accordance with the world's highest standards.

eKapija: Do you plan to expand your portfolio of coffee products soon?

- We have prepared several innovations for our consumers for the following period, with the focus on our range of espresso coffees. With the aim of expanding the Doncafe Espresso product range, we have prepared Doncafe Aromatico Cialdu, which contains a blend of arabica and robusta coffees placed in a protective atmosphere packaging, in accordance with the requirements of the Aroma Expert production system. Such packaging system enables complete preservation of aroma and freshness, which is necessary for the perfect cup of espresso. Doncafe Aromatico Cialda is primarily intended for the use at home.

(Photo: Strauss Adriatic)

eKapija: Where do you export coffee from the factory in Simanovci? Do you plan to enter some new markets soon?

- Having in mind the specific habits of consumers, which are very difficult to change when it comes to coffee, it is not surprising that local brands and manufacturers are dominant in the markets of former Yugoslav republics. Coffee from the Doncafe factory in Simanovci is present in all markets in the region. Our coffee is also consumed by people in Bosnia-Herzegovina, Slovenia, Montenegro, and on the territory of Kosovo, and we are also present in Western Europe. Our plan for this region is to take the leading position, and we are proud of the fact that our espresso coffee is already the most popular coffee of the kind in the market of Kosovo. Doncafe has achieved its greatest international success in the market of Romania where it ranks second.

eKapija: Is the demand for C kafa still high in the market?

- The company Strauss Adriatic does its best to always satisfy all tastes, needs and the purchasing power of consumers. C kafa is still very popular among its old fans.

eKapija: Is coffee consumption lower at the time of the crisis or consumers refuse to give up their favorite drink?

- People in Serbia rank second in the world in the amount of traditional coffee they drink, while consumers in Bosnia-Herzegovina are the first on that list. Their habits are not easy to change, and coffee is definitely something they don't want to give up. However, because of the crisis, more and more people are buying C kafa instead of Doncafe. However, we are happy to say that, owing to the quality and the Aroma Expert production system, the number of our customers is growing even in this difficult time.

eKapija: How does the competition in the coffee market in Serbia look like?

- Situation in Serbia is similar to those in large international markets. The strongest brands have won the trust of consumers. I think that that is very important because it is a situation that constantly introduces new challenges and motivates you to stay innovative in the constant fight for new consumers because only a good and high-quality competition can bring consumers back.

The competition always additionally motivates us to be even better and to constantly work on expanding our portfolio. That is why Strauss Adriatic launched the redesigned packaging for brands Doncafe Moment, Minas, and Strong, and we also invested a lot in the improvement of technology.

- Although the price of raw coffee has grown by 87%, prices of our products have been increased by only 29%. Unfortunately, all parameters indicate that the prices will have to be increased in the following months because of changes in certain important parameters such as the Dollar-Euro ratio, new increase in coffee price, as well as an increase in the price of fuel.

eKapija: What kind of campaign does Doncafe prepares for autumn?

- The satisfaction of consumers and buyers is an imperative in our operations. We examine and measure their satisfaction on a regular basis and change and improve our products and services accordingly. That is why we always have something new to say to our consumers, which is also the case this autumn.

Doncafe's instant mixes are the youngest products in our portfolio and they have already achieved a great success, which is not an easy thing to do in the already formed market with large local and international players. We did our best to take a step further in this segment and offer our consumers something brand new, and we are especially proud of two 4in1 products, one of which contains guarana extract, while the other is made with toffee caramel. These two products are well-accepted, particularly by younger population. This autumn, our Doncafe instant mixes will get a new and more modern packaging.

eKapija: Does Strauss plan to acquire some other companies from the food sector in Serbia since we know that the group is also engaged in businesses other than coffee production and sales?

- Strauss Group is famous around the world for its ambitious plans that are mainly fulfilled thanks to the great commitment, hard work and big effort of all employees. Although it started off as a small family business, Strauss Group is today the second largest company in Israel, operating also in categories other than coffee. Strauss Group ranks fifth in the world in the coffee sales, and it is also the leader in the production of traditional coffee in Southeast Europe. In accordance with the current strategic and business plans of Strauss Group, we are focused on future success and further enhancement of quality of our products in the coffee market. And since we are part of a large international company that also operates in other fields of the food industry, we are cautious when it comes to developing our operations in the future, but we always have a budget for the investments of strategic importance, which will definitely be used if a good opportunity arises.

S.O.