Shufersal Enters Israeli Coffee Market to Challenge Elite and Nestle
Translated & summarized from Vesty by baba
Israeli retail chain Shufersal has launched its own brands of coffee, including ground, instant, and capsule varieties, to compete with established companies like Elite and Nestle. The new products, such as Ernesto granulated coffee and Vero capsules, are priced competitively, with some significantly undercutting existing market leaders. This move comes as Shufersal's turnover has recently decreased, and the company aims to stimulate competition in the 1.5 to 2 billion shekel Israeli coffee market.
The story in 5 lines · by baba
- Shufersal has launched its own coffee brands to compete with Elite and Nestle in Israel.
- The new coffee products include ground, instant, and capsule varieties under brands like Ernesto and Vero.
- Shufersal's Ernesto coffee is priced significantly lower than comparable Elite and Nestle products.
- The Israeli coffee market has an estimated annual turnover of 1.5 to 2 billion shekels.
- Previous attempts to challenge Elite and Nestle in the Israeli coffee market have largely failed due to consumer loyalty.
Israeli retail chain Shufersal is entering the country's coffee market, aiming to compete with established players Elite and Osem-Nestle. The company is introducing its own brands of ground, instant, and capsule coffee, according to a report on Monday, October 19. Shufersal's Ernesto granulated coffee, imported from Slovenia, is priced at 29.90 shekels for a 200-gram package, but is currently on sale for 19.90 shekels, significantly undercutting Elite's 32.90 shekels and Nestle's Taster's Choice at 35 shekels. Rami Levy supermarket chain offers its own brand of granulated coffee for 24.90 shekels. Shufersal's new strategy involves using distinct brands for different private-label products to enhance prestige and attract customers with competitive pricing, a move made as the chain's turnover has recently declined. The Vero brand of coffee capsules (10 per pack) is priced at 18.90 shekels, cheaper than Starbucks capsules sold at Shufersal for 24.90 shekels. Nagi Coffee ground coffee (100 grams) is produced by Jerusalem-based Reguan for Shufersal and costs 9.90 shekels, or two for 15 shekels, compared to Elite's 12.90 shekels for 100 grams. The Israeli coffee market is estimated to have an annual turnover of 1.5 to 2 billion shekels. Previous attempts by companies like "Highs" and Willy Food to challenge Elite and Nestle have failed, as consumer loyalty is driven by habit and trust in established brands rather than price alone. Shufersal stated that "the level of real competition is determined by price, quality, and choice," and that their strategy aims to "expand the choice and stimulate competition" by developing their own brands and independent imports.
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