Atlantic Group Completes Acquisition of Strauss Adriatica and Establishes Position as the Largest Regional Coffee Producer

It has been a full ten months since the multinational food and beverage producer Strauss Group accepted the binding offer from Atlantic Group to purchase the company Strauss Adriatic, owner of the Serbian coffee brands Doncafe and C kafa. This transaction, after being conditionally approved by the Commission for Protection of Competition in the Republic of Serbia, will finally be concluded tomorrow.

Atlantic Group, which has been the largest coffee producer in the Southeast European region with the brands Grand kafa and Barcaffe, further solidifies its leading position in the coffee segment with the acquisition of Strauss Adriatica (although not in Croatia, where Franck remains the leader). Coffee is gaining even greater significance in Atlantic’s overall business. In 2023, Atlantic Group, led by Emil Tedeschi, recorded a sales revenue of €973.9 million, with coffee sales amounting to €200 million, making it the largest individual category for the company.

Strauss Coffee, a subsidiary of Strauss Group, is one of the leading coffee companies in the world with a strong presence in several countries, including Serbia, where the company entered the market by acquiring the Doncafe brand in 2003 and taking over the C kafa brand two years later. In 2007, a new coffee production factory was built in Šimanovci, about thirty kilometers west of Belgrade, which is considered top-notch in Eastern Europe.

One of the Largest Acquisitions

Along with the coffee brands, the modern production facility in Šimanovci, together with 220 employees, is also part of the transaction, the value of which has not been disclosed. However, given all the circumstances surrounding this acquisition, it can be assumed that it is one of the largest since Atlantic Group acquired the Slovenian Droga Kolinska in 2010, along with which it also acquired Barcaffe.

– This acquisition confirms Atlantic Group’s strategic commitment to strengthening our core business, of which coffee is a significant part. I believe that all of us – as economic entities, management of both companies, employees, as well as the market and consumers – can be satisfied with the outcome of this transaction. As a market leader across our entire region, we have always kept in mind our responsibility for the development of the category in Southeast Europe, and we continue to work in the same direction, commented Mate Štetić, Vice President of Atlantic Group for Strategic Areas Coffee and Sweet and Savory.

In the announcement regarding the completion of the transaction, Atlantic Group states that it intends to significantly invest in the development of its coffee business, both in production and technology development, as well as in brands, their production portfolio, and communication, in the retail and HoReCa segments. The development of key production categories (coffee, chocolate, sweet and savory snacks, delicatessen spreads, and non-alcoholic beverages), both organically and through acquisitions of strong brands in these categories, is the foundation of the company’s development strategy. The acquisition of Strauss Adriatica is an important step in realizing this strategy, as well as contributing to the growth of the coffee category in Serbia and the region and strengthening the competitiveness of the regional coffee industry and local brands.