Tchibo Announces Coffee Price Increase Amid Supply Challenges

The coffee retailer Tchibo has announced a price increase for its coffee products, marking the second hike within a short timeframe. Starting mid-February, customers can expect to pay between 50 cents and 1 euro more per pound, depending on the coffee variety. This decision comes in response to several factors affecting the coffee market, including a significant reduction in the availability of raw coffee.

A spokesperson from Tchibo attributed the price adjustments to adverse weather conditions that have led to weaker harvests, which in turn have driven up costs. The company had previously raised prices in April 2024, indicating ongoing volatility in the coffee supply chain.

Market trends suggest that the price increase was anticipated, particularly as coffee prices on the ICE exchange in New York reached their highest levels in decades by the end of 2024. Raw coffee prices surged approximately 70% over the course of that year, reflecting broader economic pressures and supply constraints.

Unlike many competitors who supply their products to grocery retailers, Tchibo sells directly to consumers through its own stores. This direct-to-consumer model allows the company greater flexibility in setting prices, as it is not subject to the pricing strategies of the retail sector.

As coffee lovers prepare for the upcoming changes, Tchibo remains committed to maintaining the quality of its products. The company continues to monitor market conditions closely, ensuring that it can respond effectively to ongoing challenges in the coffee supply chain.