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Shelf wars hit Germany.

Shelf Wars hit Germany

German household roasted coffee sales reached 297,000 tons in volume during 1988, marking a third consecutive year of expansion. Annual household consumption figures faithfully reflect price movements: in 1986 with very high prices, the market declined by one percent with the sharp decrease in prices, in 1987 the market expanded by an amazing 7.9 percent; but last year it inched up a mere 0.3 percent.

For the first semester period of 1989, household roasted coffee sales were off by one percent, in reaction to shelf price increases of 5-10 percent. However, in June of this year, the market rallied by 1.7 percent over the same month in 1988, with prices moving down to an average of 8.37 DM per pound. The price trend has continued downwards in July and August and is predicted to bottom out at the affecting coffee sales, the general feeling is that household consumption will respond favorably to the lowering price trend and that volume in 1989 will again record at most a minimal gain. Market watchers do not foresee another strong expansion over current levels for this market, as happened in 1987, even with the likelihood of bargain basement coffee prices.

Rough and tumble competition for market position among German roasters persists on a week-to-week basis. About 60 percent of household sales are made via some form of price promotion that keeps roasters in daily combat. For 1988, Jacobs led the market with 20 percent, followed in hot pursuit by Tchibo with 19 percent and Aldi with 18 percent. Eduscho took 15 percent of sales. In the second rung of national roasters, Hag accounted for 5.6 percent, Melita for 4.0, while Dallmayr held 3.5 percent of the market and Idee held 2.5 percent. In the year at hand, the market seems to have altered little, with the exception of strong growth by Dallmayr (now controlled by Nestle) and apparently at the expense of the other major second-rung roasters. Growth sectors in Germany are premium coffees, natural treated mild coffees, and decaffeinated.

Mount Everest of Green

Green coffee imports by the Federal Republic increased slightly in 1988 to reach a new record volume of 640,094 tons. Of this mountain of coffee, 492,399 tons were actually cleared into Germany, with the difference being processed and re-exported. Total imports increased by 4.3 percent for the year, while actual clearance of coffee into Germany expanded by 1.1 percent.

Colombia continues to dominate the green coffee market here, with a 31.8 percent share of imports in 1988. Brazil followed with 14 percent of imports. The other leading origins were El Salvador, 8.8 percent; Kenya, 4.3 percent; New Guinea, 4.0 percent. Although traditionally a very strong Arabica market, German imports of Robusta coffees increased last year and accounted for 10 percent of all imports.

Berlin Congress

The German coffee community is busily preparing to host the 7th International Coffee Congress. The Congress will be held next June 13-16 in Berlin, at the heart of the nation's coffee roasting industry.

While the Coffee Congress serves as the official gathering for the European Coffee Federation (ECF), featuring the annual meetings of CECA and EUCA (respectively the European trade and industry associations that together form the ECF), the Berlin Congress is also being specifically created to appeal to a worldwide coffee audience. To emphasize the international focus of the Congress, the German Coffee Association, which is sponsoring the event, has a message for TEA & COFFEE readers--"Come to Berlin in 1990."

Coffee Grinder Boom

The nation's largest manufacturer of coffee grinders, Stawert Muhlenbau GmbH, produced more than 12,000 coffee grinding units last year. Only five years ago, the company was producing not more than 7,500 units per year.

The Stawert grinders are known to the coffee industry under the Mahlkonig and Original Favorite brand names, and are in use around the world. The company prides itself on the thoroughness of its range of styles and sizes in machines, for shop and semi-industrial usage. The most recent edition is a specially designed "self service" grinder just now being launched for the U.S. market.

Gentlemen, A Lady

Heinz Bonacher informs us that ECA Kaffee-Agentur, of Hamburg, has added Ulricke Otte to the staff as a trader. To Bonacker's knowledge, this is historic, in that Otte will be the first woman coffee trader in Germany.

Surge In Espresso

Espresso coffee is the fastest growing specialty coffee in Germany. Almost unknown only a few years ago, espresso sales in 1988 reached 3,000 tons.

Although German roasters are becoming increasingly active in espresso, as evidenced by the Jacobs Mastro Lorenzo brand, the majority of sales are of imported Italian products. For example, one of the leading espresso marketers in Germany is Lavazza, the Turin company that dominates the Italian market. Lavazza has only been marketing its espresso in Germany for three years, but with such success that a subsidiary has been formed in Frankfurt, Lavazza Deutschland GmbH.

Bulk Update

Much has been happening this summer at Hamburg's bulk coffee receiving, storage and processing center, beginning foremost with a new name: "Kaffee Lagerei N.H.L. Hinsch & Cons." The new name reflects the merger of Kaffee-Lagerei with Hinsch, a warehousing company that is nearly 300 years old. In combination, Kaffee Lagerei Hinsch operates the 7,200-tons capacity bulk coffee silo in the port area and offers extensive warehousing space exclusively for coffee.

Kaffee-Lagerei Bremen is offering a wide range of services--from unloading to reloading/transshipping. This includes also acknowledging and handling of damaged goods. A processor is controlling the new silo plant. This allows the production of any desired blend quickly.

Company services will further be expanded upon completion of a new 10,000 sq meters warehouse, currently under construction adjacent to the silo. The company has also just won official approval for construction of an additional bulk silo, now only in the planning stage, but which may be built in the early 90's.

PHOTO : Hamburg Birthday

PHOTO : Germany's foremost coffee and tea port; one of the world's largest coffee and tea ports;

PHOTO : in sum Europe's second largest port and home to 3,000 import-export companies (more than

PHOTO : in any other city, anywhere), and including some of the leading coffee and tea trading

PHOTO : houses--Hamburg has just cause to be proudly celebrating this year its 800th anniversary

PHOTO : as a free port city. Seen here, coffee is being lifted into a section of the famed

PHOTO : Warehouse City, Hamburg's headquarters for numerous coffee and tea companies.

PHOTO : Lavazza offers German shoppers an elegant espresso, custom packaged and blended especially

PHOTO : for then, and with the Italian colors proudly flying on every pack.

PHOTO : The new management trio for Kaffee Lagerei Hinsch offers 71 years of combined coffee

PHOTO : experience: left to right, Jurgen Steinebrunner, Heinz Papenhagen, Lutz Achilles.
COPYRIGHT 1989 Lockwood Trade Journal Co., Inc.
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Title Annotation:coffee trade
Author:Bell, Jonathan
Publication:Tea & Coffee Trade Journal
Date:Sep 1, 1989
Previous Article:Jacob's, the pulse of Germany's coffee.
Next Article:Tea for two in Hamburg.

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