German coffee brand Tchibo arrives in the U.S.

29 Sep 2020

Tchibo 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.

German coffee brand Tchibo arrives in the U.S.
Photo Courtesy of Tchibo

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

PepsiCo doubles down on nonalcoholic cocktail mixers with Unmuddled

PepsiCo doubles down on nonalcoholic cocktail mixers with Unmuddled

8 Jul 2021

Legacy soda manufacturer PepsiCo is moving deeper into the non-alcoholic cocktail space with the announcement that it will debut a line of premium mixers called Unmuddled. The product line will be available beginning in September at Fresh Thyme and on ...

Read more 
Carbios technology creates first enzymatically recycled bottles

Carbios technology creates first enzymatically recycled bottles

6 Jul 2021

French biochemistry firm Carbios announced that, in partnership with a consortium of CPG manufacturers, it has produced the world’s first food-grade PET plastic bottles made entirely from enzymatically recycled plastic .

Read more 
Soonish debuts natural beer with gluten-free baking ingredients

Soonish debuts natural beer with gluten-free baking ingredients

29 Jun 2021

Los Angeles micro brewer Soonish now has a beer that is aiming to take the gluten-free beer space and transform it into the “natural beer” category. Soonish-Natural Beer is made using banana, millet, sorghum, and honey, but rather than resulting in a f...

Read more 
Dogfish Head releases oat-milk hazy IPA beer

Dogfish Head releases oat-milk hazy IPA beer

1 Jun 2021

It’s only been a few years that oat milk has been on grocery store shelves, but the plant-based milk alternative has made waves with its latest inroads being in the beer sector. In partnership with oat milk maker Elmhurst 1925, beer brand Dogfish Head ...

Read more 
Consumers prefer no rather than low-alcohol

Consumers prefer no rather than low-alcohol

10 May 2021

Beverage market analysis firm IWSR expects the no- and low-alcohol category to grow 31% by 2024, according to a new report that reviewed 10 key markets representing 75% of the global consumption of these beverages. The anaylzed markets were Australia, ...

Read more 
Startup Bevry takes first mover advantage in Indian oat milk category

Startup Bevry takes first mover advantage in Indian oat milk category

5 May 2021

Indian startup Bevry has developed its own oat milk formulation, which it is manufacturing and selling exclusively in India with the goal of becoming the “Oatly of India.” According to the company, it is the first brand to manufacture and sell an oat-b...

Read more 
Sugar tax in South Africa results in ‘positive changes’

Sugar tax in South Africa results in ‘positive changes’

23 Apr 2021

A study published in The Lancet found that following the 2018 implementation of a 10% tax on sugar-sweetened beverages in South Africa, the overall consumption of sugar from these beverages fell 35% from 16.25 grams per person daily to 10.63 grams per ...

Read more 
Danone Manifesto Ventures makes first UK-based investment

Danone Manifesto Ventures makes first UK-based investment

8 Apr 2021

Danone’s VC arm, Danone Manifesto Ventures (DMV) made its first investment in a UK-based business with its commitment to a £2.5m funding round for the healthy drinks brand Moju. Moju said the French Dairy giant’s minority investment in the company will...

Read more 
Topo Chico finally debuts its hard seltzer

Topo Chico finally debuts its hard seltzer

1 Apr 2021

Molson Coors Beverage Company, which is exclusively manufacturing Topo Chico Hard Seltzer through a brand authorization agreement with Coca-Cola, finally released the concept onto shelves on March 29 after announcing the development of the brand in Jul...

Read more 
Chobani enters into pilot program with PepsiCo

Chobani enters into pilot program with PepsiCo

30 Mar 2021

Greek yogurt maker Chobani recently entered into a distribution partnership with PepsiCo to sell its new yogurt drinks at convenience stores, colleges and universities in the northeastern part of the U.S. In the original report on this news, Bloomberg ...

Read more