Strauss Group, an Israeli food and beverage company, said that its subsidiary Strauss Coffee, in which the company owns 74.9%, has acquired the LeCafe brand sold in Russia and CIS. Strauss Coffee will pay $37m for the brand on the transfer date of ownership.

In addition, Strauss Coffee acquired 51% of LeCafe Group shares for $6m. LeCafe is the owner of real estate such as buildings and warehouses that will serve as a logistics center for Strauss's activity in Russia, and as an area where Strauss Coffee will set up a wholly-owned R&G coffee plant.

LeCafe also engages in the sale of non-branded instant coffee in Russia and CIS. Strauss Coffee plans to invest $6m in the construction of the plant in 2011 and 2012. The transaction and construction of the plant will be funded by Strauss Coffee.

Strauss Group president & CEO Gadi Lesin said that the company is today completing another phase in the expansion and enhancement of its competitive position in the Russian coffee market which is considered to be one of the largest in the world.

"It follows several acquisitions conducted by the company in recent years along with steady organic growth, which have all transformed Strauss Coffee Russia from a $20m company (at the end of 2007) to a $160m company, post-acquisition," Lesin added.

Strauss Coffee CEO Todd Morgan said that this acquisition will enable the company to enhance its position as the number 3 instant coffee player and number 2 R&G coffee player in Russia.

"We will do so by strengthening our portfolio with a familiar brand, gaining more market shares and increasing our shelf space significantly," Morgan said.

One of five companies affiliated with Strauss Group and operating in CEE, Brazil and Israel, Strauss Coffee employs 6,000 people, and its turnover totaled NIS 3.35bn at the end of 2009.

Strauss Coffee's activities focus on the R&G (Roast & Ground) sector, and it also produces and markets instant coffee.

The company also engages in coffee related products, providing coffee solutions to both the in-home and away from home markets, including coffee shops, restaurants, hotel and offices.