Eps 84: Israel coffee market
— The too lazy to register an account podcast
"In recent years, Israel's coffee culture has become among the most developed in the world," Uri Federman, CEO of Landwer Cafe, said.
of coffee per person annually, just ahead of Spain, whose citizens consume 4.3 kilos.
Its citizens reportedly consume an average of 12.1 kilos of coffee annually.
| Seed data: | Link 1, Link 2 |
|---|---|
| Host image: | StyleGAN neural net |
| Content creation: | GPT-3.5, |
Host
Jared Morris
Podcast Content
Pumpkin Spice Lattes may have prevailed in a country with no discernible fall season, but I have no doubt Schultz has seen the worst of Israel's coffee. Starbucks plans to open 80 stores in Israel by 2020, including 10 in its first year, making it the country's largest coffee chain. On the other hand, we have a petroleum company that treats coffee as a commodity that is bought and sold like oil.
It was Hasson who presented Starbucks with a business plan for entering the "Israeli market," and there is a reason why Starbucks chose Tel Aviv. But Starbucks is not the only company that has these things in mind; other foreign restaurants have successfully brought their coffee and other goods and services to Israel. There is no shortage of coffee shops and coffee bars in Israel, and even more in the West Bank, but there are no Starbucks stores in Jerusalem or any other major city.
Tel Aviv is a gourmet's paradise, so anyone with a taste bud can be seduced by the variety and variety of cuisine on offer in the city's cafés and restaurants. Starbucks competes with local grocery companies, including local restaurants, cafes and cafes, as well as local bakeries and cafes. Tel Aviv has always been a "gourmet's paradise" because there are so many different coffee and other coffee products that can cater to any palate, from coffee to pastries to desserts.
Tel Aviv's cafe culture is so pervasive that Yediot Acharonot, a leading Israeli newspaper, has investigated why so many residents of the city are lounging in cafes instead of working. According to a report in the Sydney Morning Herald, a lack of adaptation to local cultures is the reason why Starbucks has failed in Australia.
The average Israeli drinks four cups of coffee a day, and according to a study by Yediot Acharonot, the country's largest newspaper, there are more than 2,000 cafes in Tel Aviv alone.
So one can see why Delek's remarks about "Israeli coffee" did not go down well with the Israeli consumer, who drinks an average of 110 litres of coffee a year. Schultz's tour only lasted one day in Tel Aviv, and he didn't patronize local cafes, but you could tell from his description of the city's coffee scene and why he hadn't forgotten the many cafes and coffee bars in the country's capital.
As Cafe Joe's Ofer Gvirsman notes: "Starbucks has failed to adapt to the demands of the local coffee market in the Middle East and North Africa. So, of course, he believes the Israelis need a Starbucks to rescue them from their thick, muddy coffee.
The range of food and drinks on offer was also spectacularly underestimated, which is very varied and symbolic of the sandwich counter. In a country where even a modest dinner in a café is brought to the table by a waiter, it smacks of chutzpah, especially when you consider that the chain's prices position it at the most expensive end of the market.
The American brand, which has been an integral part of the Israeli landscape since the 1960s, has evaporated as a domestic brand - grown, everyday gourmet brands have multiplied. Starbucks has franchise systems around the world, but its brief experiment with Israeli stores lasted only two years, from 2001 to 2003. As I suggested, Starbucks withdrew from Tel Aviv in 2003 to appease the local coffee industry and a number of other countries.
Faced with rising tensions in the Middle East, one cafe is taking a different path, suggesting that everyone simply take a break. You can buy a pumpkin spice latte in one of the many coffee shops in the Old City of Tel Aviv or in a local coffee shop in Jerusalem.
The elite has taken over Cafe Co. in Lod, which has tried to compete with its instant coffee without much success. The elite ignored the advent of freeze - dried and agglomerated coffee - and forced American visitors to bring their Israeli relatives to enjoy the classic cans of Elite found in many coffee shops in the United States and other parts of the world. With the prestige that comes with coffee powder and spray, drying liquid coffee also brings prestige.
Turkish instant coffee dominates the supermarket chains, which, according to a recent study by the Food and Drug Administration (FDA), make almost all their profits in this category.
Storenext, which tracks retail sales in Israel, estimates that Elite controls 55.4% of the coffee market. Strauss says he hasn't lowered the price of coffee in Israel for several years, but he says that's not a problem.