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Hardcore marketing – Israel’s coffee and alcohol revolution

First cafes and now bars will feel the heat from Cofix and its 5 shekel products
Israelis shop at the Cofix café chain in Tel on September 30, 2013, (Photo by Gideon Markowicz/Flash90)
Israelis shop at the Cofix café chain in Tel on September 30, 2013, (Photo by Gideon Markowicz/Flash90)

Cofix, perhaps one of Israel’s most ambitious and certainly most recent coffee-to-go chains, announced to open Cofix Bar nearly 5 months after having launched its first branch in October 2013.

Cofix’s unique concept of selling all of their products for 5 NIS only (approximately €1) is intended to compete against convenience stores, coffee chains and bars where one can enjoy a warm, healthy or alcoholic drink, snack and sandwich for a most reasonable price.

Naturally the opening of Cofix caused an upheaval in the market as it hit hard on its competitors such as Aroma who quickly lowered the prices “as gesture” of some of their products.

Having done so, in most cases the competitors still offer their products for twice as much, in the best case…

The need for opening such low-priced chains arose and was to be expected as the cost of living in Israel and its constant rising feels unjustified to many. Prices rise in every branch but Cofix was able by the means of their brilliant marketing concept to break Israel’s famous coffee chain cartel. During the last five years, coffee prices were increased more than three times the pace of inflation — 25% compared with 8% — BDI estimates.

The news of Cofix opening its first Coffee and Bar chains spread like fire, from mouth to mouth (with more than 12,000 Likes on Facebook) and was widely covered in the media.

What will follow next? Cofix opening gas stations and offer 5 NIS for a liter of gasoline?

It would be the perfect solution and appeal to Israelis’ bargain-hunting instincts.

Who knows, the future will tell…

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About the Author
Arielle Adler was born in the Netherlands and has lived in Israel since 1993. She is an International marketing, corporate communications and channel marketing professional with more than 10 years of experience at international B2B and B2C companies in various industries.
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