Overview

• Jacobs Douwe Egberts is set to raise prices in German food retail by up to 25% from July 1, citing nearly doubled raw material costs after extreme weather in Brazil
• Edeka’s own analysis shows raw coffee prices have dropped about 15% in the past month and nearly 30% since January, contradicting JDE’s rationale
• The supermarket chain warns it will remove Jacobs products from its shelves if the supplier goes ahead with the proposed increase
• Other German retailers may also face higher procurement costs from JDE, potentially leading to widespread price rises for consumers
• Analysts caution that significant branded coffee hikes could suppress demand as shoppers look for lower-cost alternatives