Leading German coffee roaster Tchibo said on Tuesday it is increasing its retail coffee prices because of high coffee futures and the weaker euro. As an example, the price for a 500 gramme pack of Tchibo's top selling brand, Fine Mild, will rise on January 16 from 5.69 euros to 5.99 euros or 5.2 percent, said Tchibo spokesman Arnd Liedtke.
Other coffee roasters generally follow the price lead of Tchibo in Germany, Europe's coffee market. Coffee is traded in dollars so a weaker euro makes German imports more expensive. "We delayed this adjustment as long as possible but now it is unavoidable," said Liedtke. "As soon as the price for green (raw) coffee and the dollar exchange rate permit, Tchibo will again cut its prices." Arabica coffee futures rose to their highest in almost two years in November before retreating slightly with the market underpinned by fund buying, low stocks in Brazil and harvest quality concerns.