In the week before Christmas, Aldi is lowering the price of coffee. Other retail chains such as Edeka, Rewe, Penny and Netto announced that they would follow suit.
The discounters Aldi Nord and Aldi Süd announced that they would permanently reduce the prices of their own brands Barissimo and Moreno from this Monday. This applies to ground coffee, whole beans, coffee pods and instant coffee, to organic and normal varieties. The 500 gram pack of ground coffee will be 50 cents cheaper, and the 1 kilo pack of beans will cost 70 cents less in the future.
The retail chains Edeka, Rewe, Penny and Netto announced that they would reduce the prices of their own brands to a similar extent. This should happen “promptly,” explained a Rewe spokesman. Lidl and Kaufland did not want to comment on planned price reductions.
Relevant for price comparison
Coffee, like bread, butter and milk, is considered a corner price item. These are products that are purchased frequently and that customers base their price perception on. The prices of these items are particularly visible to consumers and are therefore easily compared. This is why corner price items are considered particularly relevant for competition between retail groups, as their prices have a certain psychological effect on consumers.
It is not surprising that coffee is one of these products. The hot drink is one of the most popular drinks in Germany; per capita consumption is almost 170 liters annually. For comparison: water consumption is around 130 liters. Soft drinks reach more than 120 liters annually, while beer is still over 90 liters.
Coffee prices have fallen
In recent months, the prices for various types of coffee have fallen significantly. According to data from the International Coffee Organization (ICO), the average price of a pound of various coffee beans in June 2022 was more than 200 US cents. According to the data, it is currently around 160 cents. However, prices have risen again by around six percent since October.
In October, prices for agricultural products also fell further in Germany. Compared to the same month last year, they fell by a total of 14.5 percent, the Federal Statistical Office reported. The prices that farmers, fruit and vegetable growers receive for their products have been falling since April.
Producer prices reflect the selling prices of producers and are considered a harbinger of inflation. If producer prices fall, this indicates falling consumer prices.