Established manufacturers of branded coffee are coming under intense pressure in Germany as discount retailers slash own-label coffee prices.
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Lidl has further reduced the price of its Bremer roast coffee to €2.09 (US$1.98) from €2.99 for a standard 500 gram pack. The move comes in response to Aldi’s much-publicised decision to cut prices for its own-label Markus Gold coffee from €2.42 to €2.29, and its cheaper Markus brand from €2.39 to €2.19.
Together, Aldi and Lidl’s aggressive pricing on coffee has won them over 20% of the German retail coffee market. Competitors trading heavily on quality still charge up to three euros more, but they are coming under pressure from the discount retailers’ relentless price-cutting.
German retail coffee prices are now at their lowest level since the Second World War.
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By GlobalData
