Tchibo's Coffee Price Hike Explained

Tchibo is raising coffee prices by 50 cents to 1 euro per pound, a reflection of escalating raw coffee costs. The scarcity of raw coffee and adverse weather conditions have contributed to weaker harvests.

Notably, Arabica bean prices have reached their highest levels in decades, with projections indicating a 70% increase by 2024. Despite these challenges, Tchibo remains committed to maintaining its quality through direct sales to consumers in its stores.

This price adjustment follows an earlier increase in April 2024 and signals a broader trend in the coffee market that became evident at the end of 2023. While Tchibo continues to supply its loyal customers directly, other retailers are focusing on the grocery sector.

The current situation underscores the impact of global factors on coffee pricing and the necessity for companies to adapt to these changes.