Shufersal Expands Coffee Imports to Challenge Strauss Dominance
Shufersal expands its coffee imports and product lines with 18 brands to challenge Strauss's market dominance, amid shifting raw material costs and retail competition.
Shufersal is expanding its presence in the Israeli coffee market as part of a strategic push to increase independent imports and reduce reliance on major food suppliers. The retail chain, which initiated this strategy about a year ago, is broadening its product offerings into additional categories, including granulated coffee, coffee beans, and Nespresso-compatible capsules, aiming to provide alternatives to established market leaders, primarily Strauss's Elite coffee.
Expanding Product Lines and Brands
As part of this initiative, Shufersal has begun marketing the Israeli-produced Nagi Turkish coffee brand and Monro instant coffee. Simultaneously, the chain expanded its supply of ARNESTO granulated coffee and the variety of capsules from the Vero, ARNESTO, and Caffe Dellucci brands.
According to the company, approximately 18 different coffee brands are currently sold across its branches, some of which are Shufersal's private labels. The chain stated its intention to introduce additional brands as part of expanding its independent import framework, though it did not publish data regarding price gaps between the new products and competing brands.
Strauss's Dominance and Market Dynamics
Shufersal's expansion targets a market where Strauss enjoys a dominant position, largely through its Elite black and instant coffee brands. The Israeli retail coffee market generates nearly 2 ₪ billion annually, of which close to 0.5 ₪ billion comes from the black coffee category, where Strauss held over 80% of revenue share as of 2022.
In recent years, Strauss faced soaring raw material costs globally, prompting price hikes. In January 2025, its black and instant coffee prices rose by up to 18%, followed by another increase in July 2025 of up to 5% for Turkish coffee and up to 8% for instant and granulated coffee.
In contrast, 2026 saw a decline in raw material prices, improving Strauss's profitability. Second-quarter financial reports revealed a 46% surge in Israeli operating profit to 198 ₪ million, aided by falling costs.
Shufersal's move is expected to introduce competitive pressure on legacy brands, mirroring its meat-import strategy aimed at challenging major suppliers like Baladi and Neto.
