STRENGTHENING THE NETWORK IN THESSALONIKI AND NORTHERN GREECE AND… SETTING SAIL FOR INDIA
Achilleas Lazarou, Business Development Director of Coffee Island, in an interview with Stefanos Machtsiras for makthes.gr, outlines the company’s investment strategy for Northern Greece in the coming year, explains the reasons behind the brand’s expansion into India, and highlights the main challenges the coffee market is facing, with climate change (leading to reduced supply) and disruptions in the supply chain putting upward pressure on coffee prices.
“Strengthening our network in Northern Greece, our priority”
What is the role of Thessaloniki and Northern Greece in the company’s growth strategy?
Thessaloniki and, more broadly, Northern Greece, have played a dynamic role in our business development and in strengthening our brand. Thessaloniki in particular is a city with a deep love for coffee, open to new trends, and its people are receptive to fresh taste experiences. On the other hand, cities such as Drama, Kavala, Alexandroupolis, and Serres have an audience that embraces innovation, seeks out the different, and appreciates high quality.
Today, our network numbers 76 stores in the prefecture of Thessaloniki, while across Northern Greece we are present in more than 30 towns and cities, thus strengthening local entrepreneurship and employment. Our focus on this region contributes decisively both to sales and to the broader recognition and outward orientation of the company.
Therefore, strengthening our network in the wider area is high on the agenda of our development plan, while we are also working systematically on upgrading existing stores, bringing fresh air both to their look and to their product range.
“Promotion of innovative services and products and implementation of new concepts”
What investment plans are in place for the region in the coming year?
The coming year includes intense activity for this geography as part of our strategy. Our ultimate goal is to strengthen our market position—something we aim to achieve through the promotion of innovative services and products, as well as the implementation of new concepts. Strengthening the store network remains a top priority, focusing first and foremost on qualitative, but also quantitative, improvements, with the ultimate goal of enhancing the experience our consumers enjoy every day. The expansion of our network will ensure broader geographic coverage and better accessibility of our products to more consumers.
At the same time, in terms of products, the development of new and innovative additions—designed to enrich our consumers’ experience and strengthen local production by incorporating unique local flavors into our menu—will help showcase the cultural identity of each region.
“A strategic move: entering India”
Recently, the company announced its entry into the Indian market. What is the significance of this move, and what do you expect to achieve?
Coffee Island’s entry into the Indian market is a move of strategic importance, reflecting our outward focus and growth ambitions. India, as one of the fastest-growing markets worldwide, presents tremendous opportunities in coffee consumption, attracting increasing investment from international brands eager to capitalize on the rising coffee culture among an expanding middle-income population.
With the opening of our first store in New Delhi in December 2024, and more importantly with the creation of a production unit by the end of 2025, we aspire to make our mark by offering high-quality products that combine an authentic specialty coffee experience with local preferences and needs. Our ultimate goal is to establish a strong and significant store network that will bolster our global position in the coffee sector.
At the same time, entering the Indian market creates opportunities for collaboration with local suppliers and businesses, promoting sustainable development and mutual economic empowerment. Through this strategy, the company strengthens its reputation as an international player, while gaining access to new markets and new points of interaction with consumers seeking premium coffee experiences.
Uncertainty and short-term fluctuations in the coffee market
Should we expect further increases in coffee prices? What are the main reasons?
Coffee price increases are always a topic of discussion in the market and naturally affect all stakeholders in the coffee industry. The main reasons behind the recent surge in prices are climate change, which has reduced production, supply chain disruptions—especially evident after the pandemic, increasing production costs—and various sociopolitical conditions. Inevitably, these combined factors have led to significant increases in coffee prices in international markets, impacting both professionals and consumers. In the short term, fluctuations in prices are likely, due to prevailing uncertainty and growing demand.
For years, we have been closely monitoring coffee as a traded commodity, and we strive to build a strong shield between market realities and our consumers. Moreover, our direct collaborations with farms around the world, and the long-term trust-based relationships we maintain—ensuring fair conditions for producers and high-quality products for our customers—allow us to negotiate more effectively with farm owners. This greatly helps us pass on the smallest possible price increases to our partners and, consequently, to consumers, who have already been heavily affected in recent years by global economic turbulence.
