PL Coffee & Tea: Get Even Stronger
By Karsten Knothe

Real,- Quality is a new private label brand found in its stores. Seen here is instant coffee. Real,- Bio Tea carries the International Fairtrade Certification Mark. Rewe offers Balanced Arabica coffee which features reduced caffeine. Rewe carries two Bio teas: Rewe Bio tea that is also Fair Trade and Rewe Bio Balance that features reduced caffeine.

Sales and consumption continue to post significant gains for espresso, convenience pods, organic and fair trade coffee offerings.

Germans love their coffee, and per-head consumption increased again in 2008 – from 146 litres to 148 litres according to the German Coffee Association. This makes coffee by far the largest single drink – ahead of water (138l) and even beer (110l).

Fastest growing products were espressos and convenience products, such as coffee pads, but also other formats such as capsules. Single portions were up some 20%, while organic and fair-trade coffees continued to grow dynamically and increased its market share to between 2% and 3%. Current tea figures were not available at the time of writing, but in 2007 the German tea market posted an increase according to the German Tea Association.

PL Presence

Private labels have a strong presence in both the coffee and tea market. Germans much prefer ground coffee to instant coffee, and this is also reflected in the PL ranges which offer more choice of ground than instant coffees. One exception are flavoured instant coffees such as cappuccinos which are also well represented in PL ranges.

Most private label coffee ranges are mainly price-value alternatives to branded products, with some unique products.

By contrast, private label tea ranges can be very versatile and include many unique varieties, especially in some drugstores and discounters, although PL tea ranges in supermarkets and hypermarkets tend to be more basic and limited to the more common and most popular varieties.

A selection of organic coffee and tea products is now a standard among all private label ranges.

Supermarkets/ Hypermarkets

Rewe has three principal PL ranges: the Ja! discount range, the Rewe brand for “quality products” positioned in lower mid price, and the organic range Rewe Bio.

For coffee, the greatest choice is available within the Rewe range, including various varieties of ground coffee such as Balance (with reduced caffeine content), Selection, Mild, Decaffeinated, all sold in 500g packs at €3.25, and Espresso sold in a 250g pack. Caffe Crema beans and Espresso whole beans are sold in 1000g packs. Instant coffees within the Rewe range are mainly flavoured varieties such as Cappuccino, Cappuccino not sweetened and Latte Macchiato, all sold in 200g packs.

The Rewe range also includes a selection of coffee pads. Varieties are Strong, Mild, Aromatic and Decaffeinated, all sold in 125g packs. The discount range Ja! includes three varieties of ground coffee (Decaffeinated, Strong and Mild) all sold in 500g packs at €2.99 as well as an Instant Coffee Gold (100g) while the organic range Rewe Bio offers a fair-trade ground coffee at €5.49 for 500g.

Apart from a ja! Branded instant tea, PLI did not identify any PL tea products in stores visited within either the Rewe or the Ja! ranges, as the price entry level was covered by Marco Polo a non-exclusive price entry brand. However, some tea products can be found in Rewe’s organic Bio range, most notably the unique varieties Balance and Vital, and also an Eight-Herbs-Tea. Other, more standard organic varieties include Fennel-Anis-Caraway Seed, Sencha Green Tea and Rooibus Tea. The only other hot drinks outside coffee and tea was an Instant Cocoa as part of either the Ja! range at €3 for 500g or the Rewe Bio range at €3 for 400g.

All of Edeka’s PL hot drinks are part of its Gut&Günstig umbrella brand, as the company has abolished the Hanseaten sub-brand that it previously used for coffee. The coffee range consists of the ground coffee varieties Classic, Mild, Natural Mild, Extra Strong and Decaffeinated, with Classic, Mild and Decaffeinated also available as coffee pads. Furthermore, Edeka offers three varieties of instant coffee (Gold, Mocca and Mild).

Other than coffee, the tea range is still spread over two brands – the discount range Gut & Günstig, and the slightly higher priced Kings Gold. Both ranges include mainly standard varieties such as peppermint, fennel or black tea, rather than unique flavour combinations, although Kings Gold is one of few PL ranges that includes specialty black teas such as Earl Grey or Darjeeling. A number of herbal varieties are available in both ranges. While all Kings Gold teas are priced at €0.99, prices for Gut & Günstig teas range from €0.49 (peppermint and camomile) to €0.95 (fruit tea).

Real,- has also only a very small PL range. Most of its products were part of its TiP brand of discount product. At the time of writing, only four products were found in real,- hypermarkets that were part of the new real,-Quality range of lower mid-priced PL products: Caffe Crema espresso coffee beans in the varieties classic and dolce (€9.99 for 1000g) and instant coffee in the varieties Mild and Decaffeinated (€4.99 for 200g).

Espresso coffee beans were also available within the TiP range at €7.99 for 1000g while a 200g jar of TiP instant coffee is €2.99. Other TiP coffee products included the filter coffee varieties Gold, Mild and Decaffeinated (between €2.69 and €2.99 for 500g of ground coffee or €1.59 for a 144g pack of 20 coffee pads). The TiP PL tea range consists of the standard varieties such as peppermint, camomile, fennel, fruit tea, black tea and green tea, all priced between €0.45 and €0.95 for a pack of 20 bags.
Real,- also appears to be in the process of converting organic products of its previous Grünes Land exclusive brand into its new real,-bio range, although PLI so far found only two products: loose Darjeeling Tea and Green Tea, sold in 200g bags at €1.79.

PL Discounters

Metro offers real,- and Tip private brand fruit juices.

At Aldi Süd, one of the two Aldi operations in Germany, the main PL coffee brand is Ameroy. The permanent range of ground coffee includes the varieties Our Best, Extra, Mild Bean, Spezial Mild and Decaffeinated, all priced at €2.99 for a pack of 500g at the time of writing. Most of these varieties also are available as coffee pads at €1.59 for a 144g pack of 20 pads. A rather unique PL product were coffee pads with flavoured toppings, such as Cappuccino, Caffe Choco and Caffe Latte, all at €1.99 for a pack of 8 pads. Furthermore, the Ameroy range is frequently expanded by coffee specialties that are available only temporarily. Examples are the addition of the varieties Costa Rica, Columbia or Brasilia early in 2009, available both as ground coffee (€3.49 for 500g) and coffee pads (€1.99 for 144g).

Italian-style espresso coffee is offered under the Tizio brand. Caffe Espresso and Caffe Crema are sold as whole beans in 1000g packs at €7.49, while both varieties are also available as coffee pads (€1.79 for a 144g pack of 20 pads). A third coffee brand is Belmont, used for instant flavoured coffees. Varieties include Family Milk Coffee and Cappuccino at €2.79 for a can of 500g.

Aldi Süd’s main tea brand is Westcliff. In addition to the staple peppermint and camomile varieties, the tea range has five sub-ranges: Herbal, Fruit, Rooibos and Green Tea. Herbal varieties are Sage+Vanilla+Honey, Fennel+Anis+Caraway Seed, Fit+Aktiv (a herbal-green tea mix with added oligofructose and apple aroma) and Herbal Tea Natural. Fruit Tea varieties include Blackberry+Raspberry, Apple+Vanilla, Strawberry and Apple. Rooibos Tea varieties include Strawberry +Cream, Vanilla, Honey and Rooibos+Herbs. The Green Tea selection consists of the varieties Original, Orange, Lemon and Vanilla.

Organic coffee and tea is part of Aldi’s bio range, easily recognisable because of its green packages that can be found across many food segments throughout the store. There is one ground coffee variety at €3.99 for 500g, while tea varieties are Fennel, Fruit and Herbal, all €1.19 for a pack of 20 bags.
Aldi is one of the few retailers that disclose the name of the manufacturers of its brands on the packaging. Thus all Westcliff teas are made by Ostfriesische Tee Gesellschaft Laurens Spethmann GmbH, one of the two leading manufacturers of branded tea in Germany, that also makes the Messmer and Milford brands.

Lidl’s PL Lines

Lidl is Germany’s second largest discounter chain. Its main coffee brand is Bellarom. Its key ground varieties are Gold, Decaffeinated, Natur Mild and Spezial Mild, all sold in 500g packs, and Espresso, sold in 200g tins. Whole bean specialties are Cafe Crema and Espresso, sold in 1000g packs. Caffe Crema is also available as a coffee pad.

As with many private label ranges, more interesting and more unique is Lidl’s tea range, consisting of Lord Nelson as the largest brand and a number of smaller brands. The Lord Nelson brand comprises mainly specialities including a black tea selection, a green tea selection, a fruit tea selection, a herbal tea selection, an aromatised herbal tea selection and a wellness tea selection. Examples of the wellness selection are the varieties Balance, Wellbeing, Vitality and Relaxation. Aromatised fruit tea varieties include Fruit of the Forest, Strawberry+Raspberry and Apple+Vitamin C. The Rooibos Tea Selection consists of flavours such as Natural, Orange, Caramel and Vanilla, while Green Tea flavours are Natural, Vanilla and Lemon.

Aromatised herbal teas include Lapacho-Orange-Spice (containing lapacho bark, exotic spices and orange aroma), Lemongrass & Strawberry and Honey & Mint. Herbal tea varieties are Peppermint, Chamomile, Fennel, Nettle, Melissa and 6 Herbs. Lord Nelson Black Tea varieties include East Frisian Tea, Darjeeling, Ceylon-Assam and Earl Grey. Instant tea is available in the flavours Lemon, Peach or Wild Fruit.

Lidl’s organic Bioness brand includes a small number of hot drinks. These are and two tea varieties: Herbal Tea and Fruit Tea. More organic products are included in the Fairglobe range of fairly trade products, for example Cafe del Mundo, a ground coffee, Instant Coffee, Instant Family Cappuccino and Darjeeling Tea.

Drugstores

Among the drugstore chains, Rossmann, Germany’s third-largest drugstore chain behind Schlecker and dm-drogeriemarkt, has the widest range of PL hot drinks.

Although dm-drogeriemarkt offers a wide range of medical teas, its standard coffee and tea offerings are covered by the Alnatura brand. Alnatura is a special case in the German private label market, as it is distributed through 46 Alnatura stores, where it would be regarded as a private label, but also through a number of other supermarkets and drugstores, where it is not a private label.

At Rossmann, the main brands are Laudatio for coffee, Kings Crown for tea and enerBio for organic coffee and tea.

The coffee range is more limited, with Laudatio available as a ground coffee (€2.79 for 500g), coffee pads and as Caffe Crema whole beans (€7.99 for 1000g). The Laudatio range also includes two flavoured instant coffees – Classico Cappuccino (€1.69 for 200g) and Family Cappuccino (€2.59 for 500g). In addition, Rossmann offers also an organic ground coffee (€3.49 for 500g) and coffee pads under the enerBio brand.

Rossmann is one of very few retailers that also offers an organic version of coffee specialties, with enerBio sold as Espresso (€2.99 for 250g) and instant Cappuccino (€2.49 for 125g).

Kings Crown and Kings Crown Premium is a wide range of loose tea and tea bags. Examples include Ayurvedic Tea “Magic Of The Orient,” a mix containing among other ingredients, fennel, anis, cinnamon, blackberry leaves and cardamom, and Chai Tea “Indian Dance.”

Loose fruit teas include Apple Tea in a Turkish Style, Strawberry Cream, Maracuja & Orange and Wild Cherry, while fruit teas in bags include Strawberry Cream, Raspberry Vanilla, Cherry & Banana and Red Fruit Mix.

Green Tea varieties include Green Tea with Apple and China Sencha (both loose), and Lemon flavour (bag). Meanwhile, herbal tea includes camomile, peppermint and the herbal mix “Harmonic Hours.” Its ingredients include rooibos, peppermint, blackberry leaves, fennel, lemon verbena and liquorice root.
The Kings Crown Premium range is a range of mainly unique specialties, most of which are not available within branded ranges or from other private label ranges.

Varieties sold in pyramid bags at €2.69 for a pack of 18 include the Avatea herbal tea Ginger-Lemon, Nyama rooibos tea with melon and aloe vera, Emeishan fruit tea raspberry and Taiyi, a green tea.

Varieties sold loose in decorative tins at €4.49 for 75g include Disani – a Green Tea with Raspberry and Lemongrass flavor, Rohini white tea with peach, (€2.69 for 10 bags), Engai rooibostee with lemon & orange, Mahadewa green tea with cammomille blossoms and Yamuna, a herbal tea. Furthermore, Darjeeling is sold loose in a decorative wooden box at €2.99 for 125g.

The enerbio tea range again is an interesting range that includes several unique flavours and therefore is wider than most other private label organic ranges. Prices between €1.49 and €1.59 for a pack of 20 bags, varieties are (in translation) Evening Calm Tea ( a herbal mix containing anis, fennel and Melissa), Anis & Caraway Sees, Lucky Star Tea (herbal mix with rooibos, cocoa and vanilla), Morning Star Tea (herbal mix containing peppermint and fennel), Black Tea and Lively Hour, a herbal tea mix containing ginger, peppermint and lemon.

German Soft Drinks

The German soft drinks market remains in a status of transformation – classic staples such as cola and traditional orange and lemon carbonates or fruit juices are struggling. Main winners are products that are positioned as healthier alternatives, containing less sugar and calories, and include juices of fruit that are thought to have additional health benefits.

One of the strongest growing segments are fruit juices mixed with sparkling water or juice drinks with a high fruit juice content, which offer the perfect combination of the refreshment aspect of a carbonated drink with the natural aspect of a fruit juice. Another strong trend within fruit juices is the trend away from juices made from concentrate, towards juices not made from concentrate, which are also sold non-chilled.

In carbonated drinks, a fast growing niche are organic carbonates, driven in particular by the success of the Bionade brand.

PL Trends

Private labels play a very strong role in the soft drinks market, especially in fruit juices where they well may account for some three quarters of volume sales, if discounter private labels are included. The private label ranges sold at discounters fully reflect the trend towards greater diversity and innovations. By contrast, private label ranges of supermarkets and hypermarkets are more geared towards covering the basics, with far fewer innovative wellness-related products.

In terms of branding, it has become more common to integrate the store fascia into private label brands of supermarkets and hypermarkets – discounters still don’t use their store fascia at all in their branding. Thus Rewe has been building its Rewe brand for more than a year now (following the merging of all previous retail fascias into Rewe), while Kaisers’ Tengelmann has launched the Kaiser Tengelmann’s Starmarke. Metro is currently introducing its real,- Quality brand in its real,- hypermarkets. In all three cases, these brands are positioned at midprice, as all three retailers retained their discounter-level economy brand (ja! at Rewe, A&P at Kaiser’s Tengelmann and TiP at real,-). All retailers also offer some soft drinks as part of their ranges of organic products.

At Edeka, Germany’s largest supermarket chain, fruit juices are offered under three brands – the Gut & Günstig umbrella range that covers entry-price products across the whole Edeka range of food and non-food, and Rio Grande, a mid-priced brand that also covers other categories such as canned and fresh fruit and jam. The third brand is Wertkost, Edeka’s umbrella brand for organic products.

However, the allocation of products is somewhat blurred as most products are sold under the Gut und Günstig brand, including non-chilled juices not from concentrate such as pineapple juice, grapefruit juice and orange juice all at €1.39 per litre. Interestingly, those were part of the Rio Grande range during PLI’s last look at this market in 2005. Also part of Gut & Günstig are chilled directly pressed orange and blood orange juice (€1.49 and €1.79 respectively for 1l). Other Gut und Günstig products include grape juice (€0.79), multi-fruit juice (€0.85, apple juice (€0.79), orange juice (€0.79) and apricot & orange nectar (€0.65 – all prices for 1l).

During PLI storechecks, only a few Rio Grande products were available, including 1.5l packs of orange, apple and multi-fruit juice, all at €1.49. Wertkost organic juice varieties are apple and orange, at €1.59 and €1.69. Carbonated drinks are also part of the Gut und Günstig and comprised cola and lemon and orange carbonate, all at €0.39 for 1.5l. In addition, Gut & Günstig also included Cola Mix, a mix of cola and orange carbonate similar to Coca Cola’s Mezzo Mix as well as Apple Schorle, the highly popular mix of carbonated mineral water and apple juice.

Rewe x 3 PLs

Rewe, Germany’s second largest supermarket chain, is also part of the trend of introducing private label brands that reflect the store fascia. As a result, the company has three private label brands – ja! for products priced at discounter level, Rewe for products priced at entry level in mid-price, and Rewe Bio for organic products.

However, this three-tier approach is not available throughout the whole soft drinks market. Thus Rewe branded products are available only in the segment of fruit juices and nectars. Products include apple juice, orange juice, grapefruit juice, grape juice, multi-fruit juice, pineapple juice, tomato juice, vegetable juice as well as banana nectar, cherry nectar, black currant nectar and cherry & banana nectar. The ja! brand has a presence throughout all soft drink segments, although in fruit juices and nectars its presence is reduced to the basics of apple and orange juice and nectar and multi-fruit juice.

By contrast, all of Rewe’s current PL products in carbonated drinks and ready-to-drink tea are covered by ja! products, offering the standard varieties at discount prices with no unique products.

The choice of organic products under the Rewe Bio brand currently consists of orange juice, carrot juice with honey, vegetable juice with olive oil – and – surely a German original (although it can be found in any store) – Sauerkraut-Juice with apple juice.

Kaiser’s Tengelmann also has a trio of PL brands – A&P for low price soft drinks, the relatively new Kaiser Tengelmann’s Star Marke, and the organic range Naturkind. Star Marke varieties include orange, mild orange, multifruit, pineapple, mild apple, mild tomato and Cherry & Banana, while A&P varieties included orange, apple, multi fruit, grape, orange nectar and apple juice drink. A 1 liter pack of A&P apple juice is €0.79, while a 1l pack of Star Marke Mild Apple juice is €1.19. Naturkind organic juices are €1.39 for a 1-liter pack with varieties including orange, apple and tomato.