Doncafe producer pays USD 20mln for Amigo brand

Strauss Coffee, owner the Doncafe line, will buy Amigo brand of instant coffee in a deal worth USD 20mln, according to the Israeli company. Amigo is sold predominantly in Romania and is produced by Cia Iguacu de Cafe Soluvel from Brasil.

The Competition Council needs to approve the deal.

Amigo first entered the Romanian market in 1983 and had sales of USD 12,5mln in 2012, with a 1.8% market share. Amigo’s sole importer is Panfoods Romania, subsidiary of Panfoods Co. Ltd based in UK.

The brasilian produced coffee is distributed through the Panfoods unit in Vacaresti, Dambovita County, very close to Targoviste.

Panfoods Romania reported a turnover of EUR 11.8 mln in 2012 with a net profit of RON 1.4 mln, constituting a 67% drop compared to the year before.

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Strauss Coffee, present in Romania since 1994, is the biggest coffee producer on the Romanian Market, with a market share of 22% for Doncafe in 2012. Strauss Romania reported a turnover of EUR 53.3mln in 2012, a 10% increase compared to 2011.

“This buy will further strengthen Strauss Coffee’s position on the Romanian market and also other markets in Eastern and Central Europe. Strauss Coffee, through Strauss Romania, is intent on developing the Amigo brand in the region”, according to Strauss Coffee interim director, Tomer Harpaz.

Strauss Romania’s general manager is Marius Melesteu, also responsible for coordinating operations in Serbia,  Bulgaria, Moldova, Montenegro, Bosnia Hertzegovina, Albania and Macedonia.