The Strauss Group, an Israeli food and beverage behemoth, has revealed its intention to further streamline its global operations by selling its Café Elite coffee chain in Israel.
The company has yet to disclose the identity of the potential buyer. In a press release, Strauss Group stated that the coffee chain was not regarded as one of its core businesses in Israel. It also mentioned that it was working to finalize the transaction for an amount “insignificant to the group.”
Strauss Group initiated Café Elite in 2003 after acquiring a minority stake in the small – format Israeli coffee chain Coffee To Go. The following year, it started the rebranding process.
When Strauss Group fully acquired the small – format coffee chain in 2008, it operated 75 outlets across Israeli train stations, hospitals, universities, and workplaces. However, the number of stores has since been reduced to 21.
Over the past 18 months, Strauss Group has divested several assets. This is part of its strategy to enhance profitability, streamline operations, and concentrate on its core Israeli businesses.
In February 2024, the food and beverage group completed the sale of its Serbian coffee – roasting division, Strauss Adriatic d.o.o., along with coffee brands Doncafe and C kafa, to Atlantic Grupa. Subsequently, in November of the same year, it divested its 50% stake in the dips and spreads joint venture Sabra Obela to PepsiCo.
Shai Babad, the CEO of Strauss Group, said, “We have completed the first year of implementing our revised strategy. During this time, we focused on and strengthened our core business, adjusted our organizational structure to support future growth, continued to invest in production sites and infrastructure, built growth drivers, and optimized our portfolio to enhance our financial and business resilience.”
Strauss Group achieved record net revenues of NIS 11.2 million ($3 billion) in the 12 – month period ending on 31 December 2024. Its international coffee business witnessed a 7.9% year – on – year sales growth, reaching NIS 4.7 billion ($1.2 billion). Poland, Romania, Russia, and Ukraine all reported significant revenue growth.
In Brazil, where Strauss Group holds a 50% share in the Três Corações joint venture (3C), coffee sales increased by 13% to NIS 3.1 billion ($853 million). In Israel, the group’s coffee sales grew by 4.7% year – on – year to NIS 830 million ($226 million).
Despite the widespread revenue growth in the coffee segment, the rising prices of green coffee negatively affected Strauss Group’s profits last year. The food and beverage group ended 2024 with an operating profit of NIS 752 million ($205 million) at the group level. However, the operating profit in its international coffee reporting segment declined by 13% year – on – year to NIS 214 million ($58 million), and in its Israeli coffee business, it decreased by 12% to NIS 95 million ($26 million).
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