News
German coffee brand Tchibo arrives in the U.S.
29 Sep 2020Tchibo is debuting four of its blends at retailers throughout the U.S. Midwest as part of a pilot program that will determine the viability of a nationwide rollout at an unspecified later date.
The German coffee brand will begin its pilot in October at a variety of retailers in Illinois, Indiana, Iowa, Ohio, Michigan, Minnesota, Missouri and Wisconsin where it will sell four blends: Morning Blend, Colombia Origin, Classic Blend and Röstmeister. These flavors will be available in both whole bean and ground formats for prices ranging between $9.99 and $17.49.
Coffee consumption in the U.S. has been on the rise in recent years with Americans drinking the most coffee since 2012, according to a survey from the National Coffee Association. At the end of last year, 64% of U.S. adults enjoyed a cup of coffee daily.
This growth in the U.S. coffee market has prompted big chains from Coca-Cola to Nestlé to invest in the space and snap up well-known brands – Coke bought the U.K.’s Costa Coffee for $5.1 billion in 2018 and Nestlé bought Starbucks retail products the same year – as well as smaller, artisanal options to pad their portfolios.
This ever-increasing demand for a caffeinated pick me up has led to the International Coffee Organization predicting that coffee consumption will soon overtake global production. However, not only does the coffee industry have to contend with a dwindling supply due to demand, but climate change has had a significant impact on production in recent years. Sustainability in the coffee industry has long been under scrutiny. Climate change is slowly chipping away at the landmass available for production and drought has repeatedly curtailed overall supply.
Nevertheless, this reality has not yet affected demand. Earlier this year, Reuters reported that when borders began closing due to the pandemic, manufacturers and retailers were stockpiling coffee to equip themselves to outlast a potential shortage of the commodity. Although this approach caused future prices for coffee to spike over 15% in May after coffee prices had previously hit the lowest levels seen in a decade, sales of coffee continued to rise. IRI data from the period showed coffee spending in France and Italy rose during that time period.
Tchibo is coming into the American market at a time where coffee continues to be a hot commodity and is reaching a more affordable price point. The World Bank shows that coffee prices have been declining steadily since their spike in May and are now below the lows seen this past February. With prices nudging toward more affordable, a brand like Tchibo that produces blended coffee at an accessible price point may not be as appealing to consumers that are seeking a high-end experience with their coffee. The National Coffee Association published data last year showing that more than half of all coffee consumption is now gourmet coffee.
Still, the economic reality of the U.S and the continued elevated numbers of unemployment claims has a good chance of changing consumers’ tastes long term. As such, a brand like Tchibo that has the cachet of a European brand but remains affordable may find itself welcomed with open arms by American consumers.
Related news
UK to ban junk food TV advertisements before 9pm
3 Oct 2024
In a bid to reduce childhood obesity, the UK government has introduced a policy, coming into effect on 1 October 2025, banning junk food advertising on television before the 9pm watershed.
Read moreWhich food and beverage brands made TIME’s Most Influential Companies list?
2 Oct 2024
Chickpea pasta, prebiotic sodas, food boxes, non-alcoholic beer, and a soil carbon marketplace are the specialties of the five food and beverage brands that earned a spot on TIME’s 2024 list.
Read moreNew environmental food scoring standards emerge
30 Sep 2024
EIT Food and Foundation Earth collaborate to launch environmental food scoring for products entering the global supply chain.
Read moreDanone removes NutriScore from products
20 Sep 2024
Following an algorithm update that gives some of its sweetened drinks a worse score, Danone has removed the front-of-pack label, NutriScore, from all of its products – putting profit before public health, say campaigners.
Read moreNestlé develops a new fat reduction method for dairy ingredients
26 Aug 2024
A Brazil-based Nestlé research and development team has developed a way to reduce the fat in milk powder by as much as 60%, without impacting the key characteristics that consumers enjoy.
Read moreBetter Juice expands its range to sorbets
16 Aug 2024
Food tech startup Better Juice has developed a technology to reduce the sugar content in fruit sorbets. The process retains the natural vitamins, minerals, and flavours of fruit, while offering manufacturers an easy-to-implement and scalable solution t...
Read moreGerman study reveals high sugar, fat, and salt levels in children's foods
13 Aug 2024
The food industry is making slow progress in reducing the high levels of sugar, fat, and salt in German food and beverage products marketed to children, according to the Max Rubner Institute (MRI).
Read moreSwedish court overturns prohibition on winery’s use of imported frozen grapes
12 Aug 2024
Swedish company Drood Winery has successfully challenged the Swedish Food Agency’s decision to prohibit the production and sale of their product made from frozen grapes imported from Iran.
Read moreParis Olympics: Food and beverage brands champion health, fun, and sustainability
5 Aug 2024
Food and beverage brands are aligning with the Paris Olympics 2024 Food Vision, which emphasises sustainability, local sourcing, and plant-based diets.
Read moreThe coffee supply chain is failing farmers, says Solidaridad
30 Jul 2024
The coffee industry’s economic model means its profits do not reach farmers, despite there being enough value to be shared all along the supply chain, according to a new report by Solidaridad Network and IDH.
Read more