Delta and Agrokor to launch coffee brand

Delta and Agrokor to launch coffee brand

The leverage that Konzum and Delta Maksi have as the dominant retail chains in their respective countries, will allow them to directly challenge the leaders in coffee products market with their own brands.

In Croatia the leading brand is Franck. Delta claims to have lead unsuccessful talks with Franck over several modes of cooperation, reports Croatian business website poslovni.hr.

Since analyses have shown that there is a lot of room in the market for a new brand of coffee, there was not much hesitation in making a new EUR 12mn investment.

The facility in Stara Pazova is set to produce 7,000 tons of coffee per year. Konzum and Delta Maxi plan to introduce the new brand in their retail chains by early 2008 and have an ambitious plant to immediately take 20 percent of the market in both countries.

Delta Holding has rounded off their business strategy in Serbia and is now shifting focus to other CEFTA countries, primarily Bosnia and Herzegovina, Macedonia, Albania and Croatia, with plans to expand further in later stages.

By purchasing a well-positioned meat processing company in Croatia, Delta also plans to skip customs barriers and make a foothold as a locally-based producer in Serbia’s neighbor.

Delta Holding was founded 16 years ago, employs 17,000 people and is the leading private company in Serbia. On the overall list of companies, Delta is outranked only by two state-owned giants – the Serbian Oil Industry (NIS) and the Serbian Electric Industry (EPS).

The company has projected a EUR 1.8mn turnover this year and more than EUR 400mn of investments. Delta built their first retail facility in 2000. Six years later, Delta has become the leading Serbian retail network through organic growth and acquisitions (Pekabeta, C market) and is spearheading the consolidation of Serbian commerce.

Delta Holding did not want to reveal any details about their plans and strategies for the Croatian market, or the project to build a coffee processing plant in cooperation with Agrokor.