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Price explosion – will coffee soon become an expensive luxury item for customers?

  1. Heidelberg24
  2. consumer
  3. Consumer Magazine

Created: Updated:

From: Marten head

For many Germans, a hot cup of coffee is not only a must in the morning, no other hot drink is as popular. But coffee could soon become a real luxury item.

It’s hardly surprising: coffee is by far the most popular hot beverage in Germany. Every German citizen drinks an average of 164 liters – mind you, every year. And we are not alone in our love of coffee. Compared to other countries, we are only average. In little Luxembourg, for example, people drink twice as much, and the Dutch, Finns and Austrians are even more fond of coffee. Coffee tastes good, wakes you up and is not particularly expensive, depending on the type. But the latter could possibly change soon. Because the price of coffee is rising. The fact that customers have not yet felt this is mainly due to the large discount chains such as Aldi* and Lidl, as HEIDELBERG24* reports.

Discounter Aldi
Headquarters Essen (Aldi North)/Mühlheim an der Ruhr (Aldi South)
founder Theo & Karl Albrecht
branches worldwide 11.235 (2019)
annual sales 81.8 billion euros (2019)

By far the largest coffee producer in the world is Brazil. An estimated 4 billion coffee trees grow in the vast South American country, about a quarter of the world’s total. In 2020 alone, 3.7 million tons of coffee will be harvested, more than double that of Vietnam, which is right behind at number 2 on the list. Colombia, Indonesia, Ethiopia and Peru follow. The “Arabica” and “Robusta” varieties, which are also popular in Germany, come from Brazil’s so-called “coffee belt” along the tropical and subtropical regions of the country.

Rising raw material costs: Tchibo increases prices significantly

The problem: The coffee harvest is susceptible to weather fluctuations. Coffee bushes need a balanced climate without temperature extremes, without too much sunshine or heat. The increase in average temperatures, the change in the seasonal distribution of precipitation and extreme weather events due to climate change sometimes reduce the yield significantly – and thus drive up the price of the valuable commodity.

German coffee producers are also feeling the effects, above all the industry leader Tchibo. As the website wmn.de reports, the company is currently increasing its coffee prices by 50 cents to 1.30 euros per pound, depending on the variety. The markFeine Milde” for example from 5.69 euros to 6.99 euros. This corresponds to an increase of 22 percent. The reason is the increased green coffee prices.

Higher coffee price: Aldi refuses

Lucky for the customers: The biggest buyers of coffee in this country are the large discounter chains such as Aldi and Lidl. The sheer quantity alone enables them to have a decisive say in coffee prices. And so far they refuse to pay the higher prices. But that doesn’t mean it will stay that way forever. It is possible that discounter customers will soon have to dig deeper into their pockets for their beloved “black gold”. If Aldi and Lidl also see themselves forced to pass on the increased prices downwards.

The discounter giant Aldi, which is currently causing mixed reactions among its customers with a sensual commercial *, is still advertising its coffee varieties at the usual prices. With 4,159 branches in Germany alone, the country’s largest food retailer can apparently still afford it. The only question is for how long. (mko) *HEIDELBERG24 is an offer from IPPEN.MEDIA

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