Feb 10 • 10:40 UTC 🇩🇪 Germany FAZ

Business Ticker: Tchibo Loses Dispute Over Price Wars Against Aldi South

Tchibo has lost a legal battle against Aldi South regarding coffee pricing, allowing the discounter to continue selling coffee below cost amid a competitive market.

In a significant legal ruling, Tchibo has lost its dispute against Aldi South over pricing strategies in the coffee market. The Düsseldorf Higher Regional Court ruled that Aldi's practice of selling roasted coffee at prices lower than the purchase price is permissible, even when such prices fall below the cost of green coffee beans on the stock market. This ruling is expected to intensify the ongoing competition for coffee customers between the two companies, which has become increasingly fierce in recent months.

Tchibo, a coffee retailer, argued that Aldi's pricing tactic undercuts fair competition, leading them to seek an injunction against the discounter. However, Aldi South, which has consistently managed to sell coffee at lower prices since late 2023, did not dispute the claims but defended its pricing models within legal frameworks. This ongoing price war is reflective of broader trends in the retail market where discount chains engage in aggressive pricing strategies to capture consumer interest, especially in essential goods like coffee.

With Aldi's strategy legitimized by the court ruling, it raises questions about the future operational strategies of established retailers like Tchibo. The implications of this case may lead to a shift in how coffee prices are set and the practices of retailers may evolve in order to compete effectively. As global markets continue to navigate price fluctuations, the decision underscores the tension within the competitive landscape of food retailing in Germany, particularly in essential goods sectors like coffee.

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