Coffee prices rise rapidly: Place discounters on their own brands!

Coffee prices rise rapidly: Place discounters on their own brands!

In Germany, coffee is a daily drink, the prices of which have increased steadily in recent months. Discounters like Aldi and Lidl have increasing demand for their own brands. In many cases, these products, although cheaper, are produced by brand manufacturers. For example, darwesten.de that Aldi will use the most of his coffee products under the label" Barissimo "and via its own roasting has.

Aldi cooperates with Cafea GmbH and German extract coffee GmbH to produce instant products. In contrast, Lidl's coffee is sold under the “Bellarom” own brand, with production being taken over by Minges Kaffeeösterei GmbH. The "Moreno Cappuccino" by Aldi and the "Granaroma Cappuccino" from Lidl come from the brand manufacturer Krüger. These partnerships show that the quality of the discounter offers can compete with well-known brands.

price increase and causes

Coffee prices in supermarkets and discounters have increased since the beginning of the year, with the price increase for ground coffee and coffee pads of brands such as Jacobs or Melitta between 9 and 33 percent. Eigen brands such as "Barissimo" and "Bellarom" now cost 28 to 30 percent more than at the beginning of the year. The causes of this are complex. According to ZDF.de , increased raw material prices and unfavorable climatic conditions play a central role. Extreme weather events, such as frost and drought, affect the coffee harvest sustainably.

The world's largest coffee producer, which expects a decline in the harvest of around 5 percent compared to the previous year, is particularly affected. As a result, the price of Arabica coffee beans on the New York raw material exchange has been climbing to the highest level since 1977, currently with 320.10 US cent per pound. Experts warn of a persistently high price situation for coffee in the coming years, since extreme weather conditions are likely to occur more frequently, which makes it even more difficult to add the sensitive Arabica plant.

market situation and outlook

The current price increases are not only due to the effects of the harvesting conditions. Agricultural market experts expect prices to decrease in the long term. Carlos Mera from Rabobank notes that a significant drop in price would only be possible for many months. The uncertainty on the market is also reinforced by geopolitical tensions and transport problems. In particular, the announcements in the United States to raise high tariffs to Mexican goods could continue to make coffee import more difficult, since Mexico exports a large part of its harvest, mainly Arabica beans.