The Israelis' fondness for coffee has been known for years, and the full coffee shops throughout the country will testify to this.
But the Israeli consumer wants to have an impressive platform for self-preparation at home as well, meaning of course the sophisticated machines that offer a fine drink, almost or maybe even like in a cafe.
What indicates the phenomenon is the number of capsule brands that exist in the market, which "ride" the machines of the leading Nespresso brand, as well as the development of the market for automatic machines that offer ground coffee.
Ofari Shabo, the marketing director of Strauss Coffee, says that "In general, Israeli consumers drink more coffee at home than outside - about three to three and a half cups a day on average. However, despite all the developments, we are still a country of Nemes and Turki. In the last two or three years We drink even more at home, due to the trend that started during the Corona period.
"In addition to that, we are in the trend of premiumization, because during Corona people stayed at home and looked for coffee at a higher level. The entire field of coffee beans jumped by tens of percent during that period. The world of coffee is growing more or less the same as the growth in the population - that is, by 2%-4% - And the beans, on the other hand, jumped by 40% every year. The reason is that it is fresh coffee, which is the closest thing to a coffee shop. When the beans are good, they should not be compared to capsules and instant coffee. People also like to show off their machines with the sight, the smell and the grinding noise."
Coffee, photo: Thinkstock Photos
As in other culinary fields, such as beer and olive oil, coffee also gained momentum and people began to delve deeper and deeper into the subject.
"People have discovered new layers in this world," explains Shabu, "if until Corona the type of coffee was very strong and relatively bitter, today people are looking for more sour flavors, which correspond more to the Arabica variety and not to the Robusta. They want to experiment with flavors that are more earthy and herbaceous. We , the Israelis sweeten their coffee a little less, and if until a year ago 50% were sweetened, today it is 45%."
Despite the growth in the field of coffee beans, he notes that "the world of capsules is still five-six times larger than that of beans, so all manufacturers are trying to excite the consumer. We launched a collaboration with roasters some time ago. They make excellent coffee, and we developed a capsule with them." .
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Precision at the push of a button
Yiffit Mantin, Nespresso's vice president of marketing, outlines the consumption patterns of Israelis in contrast to consumers overseas. "Scandinavian countries consume the most coffee in terms of kilograms per capita per year.
Then, in the second five, we can name European countries such as Switzerland and Sweden, and we are in a good place in the middle.
In recent years the premium market has grown, as has the world of capsules.
If we examine different cities in the country, then in the central region we can compete very well against the first countries in the ranking.
"We see a coffee culture that has developed, connoisseurship and taste. People are looking for advanced machines, new coffee flavors, and we are looking for the coffee shop experience at home. We also have high consumption rates of coffee at the national level, and this is a growing trend. Two-thirds of Israelis aged 16 and over have drunk coffee in the last 24 hours."
Mentin says that two-thirds of Israelis drink coffee with milk - third place in the world in this field - and therefore also developed special products to meet this habit.
Furthermore, 75% of consumers in Israel drink coffee in a large cup, and "for them we offer the Verto system, which produces a solution for customers who like to drink coffee with milk, and it produces coffee with cream. Whoever tries it, it is difficult for him to go back, since it produces At the push of a button, the cup of coffee you like."
Oren Tal, photo: Espresso Club PR
There is great competition in the world of capsules, and on the other hand there is an increase in purchases of the automatic grinding machines. How does it affect you?
"Coffee culture is constantly evolving, and there are always interesting trends. The grinding machines have always been there, and there is a trend in their direction. It is important for us to provide the answer and the solution from our side, with a wide variety. When you look at the way the grinding machines are used, you have to take into account the whole complex .
"The advantage of the capsules is that I know it's the exact amount. I don't have any waste here. I know that at the push of a button I received the coffee in the size and cup that suits me. There is more convenience, speed and a wide range of prices here. The customer is not left with one choice. What is beautiful in my eyes is Regardless of the solution - capsules or molars - it only shows how much the world of coffee is developing and how much it is tasteful, experiential and provides moments of indulgence."
The market opened, prices fell
Nespresso's success led to an attempt to take a bite out of its market share through the supply of capsules that are compatible with the machines it produces, as well as the sale of parallel imported machines.
On the other hand, the capsules are only sold in Nespresso boutique stores.
There is almost no parallel import of capsules in Israel, and the one who testifies to the difficulty in doing so is Oren Tal, CEO of "Espresso Club".
"We sell Nespresso through parallel imports," he says.
"At the commercial level, the market has changed. Today you can find almost any brand anywhere. With us, you can get Nespresso, which is a game changer. During the Tishri holidays, we sold capsules from Germany with parallel imports at a 20% lower price due to the low euro and because of the differences between the countries. It comes out 10% cheaper than the regular price. The market has opened up to competition. Starbucks is also strong now and is sold everywhere. These are capsules that the same factory produces, and people can buy them at a lower price. These are not the same flavors. This is their way of competing with supermarkets, so that an elite company Strauss won't take the entire capsule market.
"At the commercial level, for consumers, the market has opened up a lot. The prices of coffee products have decreased and the variety has increased. The coffee consumer is not exposed to price increases, this is an area where prices are only decreasing. Although the goods became more expensive at certain stages by more than 100%, and the prices of all the materials that make up this area They went up, including the production in China of the machines, but you won't see a price increase when there is a lot of competition. The parallel imports for the machines pushed the whole market down. In the machines there are parallel imports, and in the capsules we only import. There are also small entities, but for us it is in large volumes online. The products Nespresso's kosher comes from abroad, so there is no problem of parallel imports."
DeLonghi coffee machine, photo: PR
But why is it only 10% cheaper with you and not more than that?
"This product cannot be bought wholesale. We do not sell more than a certain amount per customer. It is cumbersome, and this includes collection from Nespresso boutiques. The price in Germany is lower, but the operation is more complex. This is our service because we sell all the brands, and also this ".
Regarding the trend of grinding coffee at home, Tal says that "the disadvantage is that the machines themselves are more expensive, they are bigger and take up more space. In terms of capsules, you can have a wide variety that morning.
"Coffee is a habit. As Turkish coffee has not disappeared, I doubt they will go straight to molars. The 20-30 year olds have embraced the trend more. Those who are used to capsules will find it difficult to switch, unless they buy a coffee machine and start fiddling with it for hours. The capsules are not dead, and they will remain because they have no competition in terms of price and variety, and the result is the same. The result of the vending machines is not like in coffee shops. Dealing with the vending machines is like art and wine - some have wine cabinets; most people do not have the ability and patience to do this".
Nespresso Verto machine, photo: PR
Bring Italy home
Mor Moskowitz, director of the household products department at Brimag Israel - the company that is active in the field of automatic machines only through the Delonghi brand - tells about the huge development: "In recent years, the field of automatic coffee machines has been expanding, and is actually biting into the traditional field, which was more common in our country, which is the capsules. The market Ours is used to it for the obvious reasons.
"A person who decides to buy a coffee machine buys a basic machine, and then moves on to buy an automatic machine. The reason is that consumers do not want to be dependent on a particular company. This is a high cost in relation to the amount of coffee, and also it is industrialized, engineered and not fresh coffee. People went out into the world and realized that there are coffee machines With tahini, and the coffee is cheaper. You can buy the coffee you drank in Italy in a piazza in Rome. This is a trend that has been expanding in recent years. The world is divided half and half. According to our feelings and data, in Israel this is the direction and eventually it will get there."
But many claim that the automatic machines do not offer coffee exactly like in the cafe.
"There is no machine that makes coffee like a barista in coffee shops. It's like there is no cook at home like a chef in a chef's restaurant, but the closest result to a coffee shop is an automatic machine. If you know how to choose the blend of beans that will suit your palate and calibrate the machine well - the results are similar to coffee shops and sometimes even More than that. I drink better coffee at home using the automatic machine than in coffee shops in meetings. The Israeli consumer is technological - we embrace innovation and like to be updated."
Beans coffee machine, photo: PR
As part of the expanding competition, there are quite a few innovations in the field of machinery.
For example, Lola, an espresso coffee machine with a measuring spoon from the Landwehr company.
The machine has a removable brewing handle for use, and it includes a coffee machine, a coffee grinder and a frothing pitcher, at a price of NIS 999.
The Copperbush brand offers a built-in automatic coffee machine for the kitchen, which includes a pressure of 15 bar, the option to choose the desired aroma from five degrees - from mild to very strong - and the choice of the desired coffee temperature.
The price: 13,000 shekels.
Copperbush coffee machine, photo: PR
Assi Arbiv, one of the owners of Clinton Trade, the importer of the Teka and Copperbush electrical brands: "In recent years, coffee machines have become smarter, more upgraded, and have gadgets and features that make it possible to achieve good results even in the home space. With the development of the machines, we are also witnessing a significant change in terms of the level of investment and knowledge of The consumers. They reach the purchase stage after doing research and a preliminary survey, and are also ready to invest a large sum in machines that have long since ceased to be 'marble products' worth a few hundred shekels, but in built-in machines that fit in with the nature of the kitchen and its style.
"Another change is in the preference for machines that produce fresh coffee with beans that are ground at the moment of preparation. Those who until now were content with capsules, now want to grind coffee according to a preferred degree of grinding, and even those who do not give up mud black coffee are already looking for a machine that will upgrade the simple home coffee and allow them to enjoy brewed coffee .
"Until three decades ago, coffee machines were considered an item for 'crazy people to talk about' and were mostly manual, like those in coffee shops. The entry of professional coffee into every home occurred especially through the semi-automatic coffee machines and the use of capsules. The new trend in the field is built-in machines, which are Fully automatic. These machines allow the customer to enjoy any type of coffee at the push of a button and without taking up space in the kitchen, the size of which is getting smaller and smaller over the years."
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