RUSSIA 30th November 2010

Israeli-based multinational roaster Strauss Group has acquired the LeCafe brand as part of its expansion into the Russian market, the company announced at the end of November.

European subsidiary Strauss Coffee BV is to pay $37m (€28.4m) for the brand, and the company will also buy 51% of LeCafe's shares for an additional $6m (€4.6m)

LeCafe's buildings will be used to house a logistics centre for the Strauss Russia operations, and Strauss plans to set up a roast and ground coffee factory on the LeCafe site as well, the company added.

LeCafe, which had a 2009 turnover in Russia and the CIS countries of $23m (€17.7m) also sells private label instant coffee into the local markets.

The move consolidates Strauss' position in the Russian coffee market, a spokesperson said, as the third largest instant coffee operation and the number two roast and ground supplier.