Tchibo increases prices Drinking coffee is getting more expensive

Status: 14.06.2021 10:42 a.m.

The rising prices for green coffee are now also being felt by consumers: for the first time in four years, market leader Tchibo is asking more for its filter coffee. Other dealers could follow suit. In the past weeks and months, some foods have become more expensive, especially vegetables and fruits. Now German consumers also have to dig deeper into their pockets for their favorite drink. From this week onwards, coffee will be more expensive. Tchibo is increasing prices by between 50 and 100 cents per pound – depending on the variety and country of origin. The 500 gram “Feine Milde” pack will cost 5.69 euros in future – instead of the previous 4.99 euros.

A poor harvest is threatened in Brazil

Tchibo justifies the first price increase since 2017 with the rise in green coffee prices. The poor harvest forecast of the world’s largest coffee producer, Brazil, has recently pushed up purchase prices. Tchibo’s move should have a signal effect for the entire industry. Because the market leader usually gives the direction. The group can set the prices in its branches itself. Other roasters and dealers could follow Tchibo’s example.

05/28/2021

Discounters are still waiting

According to Armin Valet from the Hamburg consumer center, the supermarkets will soon follow suit. The consumer advocate predicts that coffee capsules are also likely to become more expensive soon. So far, the discounters Aldi and Lidl have been keeping a low profile. You have not yet commented on price changes. Aldi Süd and Aldi Nord have their own coffee roasters and can determine the prices of their own brands themselves.

Tchibo competitors are likely to follow suit soon

The big coffee roasters are still waiting. Melitta and Dallmayr do not want to comment on possible price adjustments. A spokeswoman for Dallmayr only confirms that the company has been massively affected by the very significant current cost increase. The Jacobs Douwe Egberts Group has announced that it has increased its factory prices due to increased purchasing costs. The Dutch group, which is controlled by the Reimann family, owns well-known brands such as Jacobs, Café HAG and Senseo. Its trading partners are, in particular, grocers who set the end consumer prices on their own responsibility.

analysis 06/09/2021

Green coffee has become almost twelve percent more expensive

The so-called ICO price index, which is made up of several types of coffee, rose by 1.4 percent in April, the sixth month in a row. According to calculations by the Federal Statistical Office, the import prices for green coffee in April were almost twelve percent above the level a year ago. The high-quality Arabica variety in particular has risen significantly in price. The prices have now climbed to their highest level in four years. In New York, Arabica coffee cost around 164 cents a pound at the beginning of June.

02.12.2019

Coffee capsule boom

Coffee is the most popular drink among Germans. The per capita consumption is 168 liters. It is true that significantly less coffee was drunk in cafes, bakeries and canteens during the corona pandemic. At home, however, German citizens consumed eleven percent more. The market for coffee capsules in particular has experienced an unexpected boom in recent years. Competition could soon intensify. With its coffee brand Costa, Coca-Cola wants to attack the market leader Nespresso. The Brause group relies on a partnership with Krüger: The German family company produces the aluminum capsules for Coca-Cola. The capsules are compatible with the Nespresso system.

Coffee has long been a minor matter at the traditional roaster Tchibo. The more than 11,000 employees of the Hamburg-based company worldwide sell everything you need or not, from tea towels to bed linen and garden hoses. Now the group of companies is entering the e-car business. There will soon be the Tesla 3 in white, black or silver or the latest electric vehicle from Fiat – can be ordered online and at a fixed price.

Tchibo offers the car as a car subscription – a kind of all-round carefree package between leasing and car sharing that includes everything except electricity. When the term is over, you simply return the car. The model is particularly interesting for all those who want to try out e-mobility first. Tchibo has also sold small cars of the Smart or Opel Adam type in the past.

The ADAC cooperates with Opel

The coffee giant isn’t the only retailer putting out feelers for the lucrative auto market. The discounter Lidl already had Fiat models, Edeka sold puntos from the Italian brand, and the Westphalian department store chain Marktkauf offered Kias and Daewoos discounts of up to 40 percent. Because of the fierce competition and falling profits, German retailers are always coming up with new ideas and selling everything that is not nailed down. Now the commercial part of the ADAC wants to get involved in the market: In a cooperation with Opel, different models are to be brought to the people in the future.

The retail industry is in a turmoil. Above all, the Association of German Opel Dealers (VDOH), which is already constantly at odds with the manufacturer, sees the cooperation between the automobile club and Opel with eagle eyes – its members are still allowed to deliver the new cars, but otherwise the business passes them by . However, the Opel dealers emphasize that this is a time-limited campaign. Anything else “would also violate the manufacturer’s obligation under the dealer contract,” said Uwe Heymann from the VDOH.

Car market has been competitive for years

The supremacy of classic car dealers has been shrinking for years – especially since the European Commission opened the markets in autumn 2002. Until then, the dealers had quasi regional monopolies, because the territories when selling were precisely defined. That is history – and the number of newcomers is large. The share of classic dealers in total sales is slowly but steadily declining.

However, this is only partly due to the Tchibos, Lidls and Edekas, whose sales volume is manageable and whose promotions are limited in time. Above all, it is due to the competition from the numerous Internet portals that sell cars completely online. “It started with start-ups that organized Internet sales and made it known,” says expert Karsten Neuberger from the University of Duisburg-Essen. The resulting transparency in the market has developed into a great advantage for customers.

There are now dozens of retailers on the Internet. The total share of these car sales in Germany is still manageable. However, around ten percent of all new car purchases in the private sector are already made over the Internet. This is the result of the current DAT report, a representative survey by Deutsche Automobil Treuhand. On behalf of the automotive industry and in cooperation with the Society for Consumer Research, this company researches market behavior in the sector.

Less of a status symbol than it used to be

There are several reasons for the trend towards online purchases: In times of minimalism and sustainability, the importance of one’s own car is becoming less and less important for more and more people. “The importance of the car is normalizing,” says Stefan Bratzel, head of the Center of Automotive Management (CAM) in Bergisch-Gladbach. “Today it is no longer the status symbol that we tinker with at the weekend,” said the car expert. This is especially true for the younger generation: “There the urge to drive has weakened significantly. The emotionality associated with it is nowhere near as it used to be.”

For many people, their own car is becoming a commodity like a washing machine – and that naturally has consequences for sales. According to the most recent DAT report, 41 percent of all respondents can imagine the complete processing of the car purchase over the Internet.

Bargain prices attract online shoppers

It is not uncommon for the lavish discounts that entice customers to shop online. Comparisons and studies by automobile clubs and market research companies show that you almost always save around 1000 euros on average – money that used to end up in the pockets of car dealers. What travel agencies and electronics retailers have been experiencing for years can increasingly also be observed in the car market. “We go to the dealership less. The dealership comes to us more,” said market watcher Bratzel; an unstoppable consequence of digitization.

The only consolation for the dealers: There is a great need for advice, especially with e-cars, the cars have to be regularly serviced and checked – a business that remains for those who have expertise and usually also the appropriate workshops. But the dealers do not want to be fobbed off only with the role of advisor, delivery agent and repairman. Especially not because the manufacturers are imposing ever stricter requirements and building regulations so that everything in the sales halls sparkles and glitters. “These are investments in the millions that can no longer be amortized”, says Antje Woltermann, managing director of the Central Association of the German Motor Vehicle Industry (ZDK).

Manufacturers also rely on online sales

Many retailers feel abandoned by their manufacturers. Because more and more large car manufacturers have discovered direct sales for themselves and are selling their new cars themselves over the Internet to retailers. The starting shot was given by Mercedes, where customers have been able to order the Smart directly since 1999. But VW, Volvo and many others also want to make greater use of this form of distribution in the future. This is cheaper for customers, but the ZDK calls for a statutory safeguard clause. If dealers are obliged by their manufacturers to make massive investments, they should also have a privilege when selling, says Woltermann, referring to Austria, where there are such provisions. “We need a European solution for this,” said the sales expert, who is also the spokesperson for the alliance of European car dealers and repairers.

CAM boss Bratzel also sees it that way, because in the end the manufacturers are dependent on their sales partners. “Fair ways have to be found between car dealers and manufacturers,” says the auto expert. But there will be no going back to the old days. The dealers, like the entire automotive industry, are facing a massive transformation process: “The party with many auto dealers who had a license to print money for a long time is over.”