Hot drinks in Germany registered strong value growth in 2011 as commodity prices reached an all-time high. Following poor harvests in Vietnam and Central America in 2010, a fall in global coffee supply led to a spike in raw coffee prices. Similarly, tea faced significant price increases for raw materials, caused by poor harvests in India and China and a general supply shortage as tea producing countries are increasingly switching to the cultivation of soya and other more profitable crops. These increases in cost were inevitably passed on to some extent in 2011, thus driving value growth.

1. Research Report on Hot Drinks in Germany
Overview
Discover the latest market trends and uncover sources of future market growth for the Hot Drinks
industry in Germany with research from Euromonitor's team of in-country analysts.
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When you purchase this report, you also get the data and the content from these category reports in
Germany for free:
Coffee
Tea
Other hot drinks
The Hot Drinks in Germany market research report includes:
Analysis of key supply-side and demand trends
Detailed segmentation of international and local products
Historic volumes and values, company and brand market shares
Five year forecasts of market trends and market growth

2. Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
What is the market size of Hot Drinks in Germany?
What are the major brands in Germany?
How has an increasing desire for heart healthy or fiber-added drinks affected the hot drinks
industry in Germany?
Are manufacturers changing packaging sizes and formats to fit an on-the-go lifestyle?
How have changing demographics (for example an aging population) affected the hot drinks market
in Germany?
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Sample Analysis
EXECUTIVE SUMMARY
Sharp rise in commodity prices drives steep value growth
Hot drinks in Germany registered strong value growth in 2011 as commodity prices reached an all-
time high. Following poor harvests in Vietnam and Central America in 2010, a fall in global coffee
supply led to a spike in raw coffee prices. Similarly, tea faced significant price increases for raw
materials, caused by poor harvests in India and China and a general supply shortage as tea
producing countries are increasingly switching to the cultivation of soya and other more profitable
crops. These increases in cost were inevitably passed on to some extent in 2011, thus driving value
growth.

3. Uncertain economic outlook impacts volume sales
Germans’ spending habits were dampened once again in 2011, this time by the unpredictable
developments of the EuroZone crisis. In combination with unit price increases, the uncertain
economic outlook had a negative impact on volume sales of coffee, the largest category in hot drinks
and also the category with the highest unit price increases. While volume sales of tea did not
decline, a slowdown in growth was noticeable. The biggest impact, however, was on branded fresh
coffee manufacturers, many of which faced steep volume declines as cheaper private label products
gained share.
Traditional domestic brands lead sales
Local companies still have a strong presence in the German hot drinks market. The leading brands
in the industry are primarily domestic coffee brands Jacobs, Melitta, Dallmayr and Tchibo. All four
have a long-standing history in Germany and enjoy high levels of consumer awareness. Except for
Jacobs, which is owned by multinational company Kraft Foods, all the leading brands are
domestically owned. This also applies to the leading brands in tea, where traditional German
brands Teekanne and Messmer are the biggest players. While multinational companies and their
brands also have a strong presence, up to 2011 their sales were still not as significant as those of
traditional local brands.
On-trade unaffected by volume declines
Unlike retail sales of hot drinks, foodservice sales registered a positive performance in volume
terms in 2011. This was largely the result of the strong growth registered by chained specialist
coffee shops, which continued to gain in popularity not least due to the expansion of McCafé up to
2011. Modern coffee specialities such as Latte Macchiato and Frappés have grown hugely in
popularity in Germany and most consumers regard them as an affordable but special treat
consumed away from home. In tea, the growing popularity of trendy chai latte, widely available in
most specialist coffee shops by 2011, helped a positive on-trade performance.
Growth in value sales to be driven by higher coffee prices

4. The forecast period is expected to register a similar performance to that seen in 2011. Price
speculation and raw material shortages are expected to drive commodity prices up, giving
manufacturers the choice of either raising unit prices further, and probably losing market share to
cheaper competitors, or absorbing costs by accepting smaller profit margins. As profit margins have
been squeezed already, unit price increases especially for coffee are expected, keeping value sales
growth positive but resulting in volume sales declines
Table of Contents
Hot Drinks in Germany - Industry Overview
EXECUTIVE SUMMARY
Sharp rise in commodity prices drives steep value growth
Uncertain economic outlook impacts volume sales
Traditional domestic brands lead sales
On-trade unaffected by volume declines
Growth in value sales to be driven by higher coffee prices
KEY TRENDS AND DEVELOPMENTS
Economic uncertainty and high commodity prices boost private label sales
Health and wellness trend and demographic changes benefit tea consumption
Convenience trend drives drinks-to-go format
Eco and sustainability concerns grow amidst difficult economic situation
Speciality hot drinks take share from traditional types
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2006-2011
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2006-2011
Table 3 Retail Sales of Hot Drinks by Category: Volume 2006-2011
Table 4 Retail Sales of Hot Drinks by Category: Value 2006-2011
Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2006-2011
Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2006-2011
Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2006-2011
Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2006-2011
Table 9 Total Sales of Hot Drinks by Category: Total Volume 2006-2011
Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2006-2011
Table 11 Hot Drinks Company Shares by Retail Value 2007-2011
Table 12 Hot Drinks Brand Shares by Retail Value 2008-2011

5. Table 13 Penetration of Private Label by Category 2006-2011
Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2006-2011
Table 15 Sales of Hot Drinks by Category and Distribution Format: % Analysis 2011
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2011-2016
Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2011-2016
Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2011-2016
Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2011-2016
Table 20 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2011-2016
Table 21 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2011-2016
Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2011-2016
Table 23 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2011-2016
Table 24 Forecast Total Sales of Hot Drinks by Category: Total Volume 2011-2016
Table 25 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2011-2016
APPENDIX
Production/Import/Export Data
Table 26 Imports/Exports/Apparent Consumption of Hot Drinks by Category 2006-2010
DEFINITIONS
SOURCES
Summary 1 Research Sources
Hot Drinks in Germany - Company Profiles
Kraft Foods Deutschland GmbH in Hot Drinks (Germany)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 3 Kraft Foods Deutschland GmbH: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 4 Kraft Foods Deutschland GmbH: Competitive Position 2011
Krüger GmbH & Co KG in Hot Drinks (Germany)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION

6. Summary 7 Krüger GmbH & Co KG: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 8 Krüger GmbH & Co KG: Competitive Position 2011
Melitta Kaffee GmbH in Hot Drinks (Germany)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 11 Melitta Kaffee GmbH: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 12 Melitta Kaffee GmbH: Competitive Position 2011
Nestlé Deutschland AG in Hot Drinks (Germany)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 15 Nestlé Deutschland AG: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 16 Nestlé Deutschland AG: Competitive Position 2011
Ostfriesische Tee Gesellschaft in Hot Drinks (Germany)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 19 Ostfriesische Tee Gesellschaft: Competitive Position 2011
Röstfein Kaffee GmbH in Hot Drinks (Germany)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 22 Röstfein Kaffee GmbH: Competitive Position 2011
Tchibo Frisch-Röst-Kaffee GmbH in Hot Drinks (Germany)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND

7. PRODUCTION
COMPETITIVE POSITIONING
Summary 25 Tchibo Frisch-Röst-Kaffee GmbH: Competitive Position 2011
Teekanne GmbH in Hot Drinks (Germany)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 28 Teekanne GmbH: Competitive Position 2011
Coffee in Germany - Category Analysis
HEADLINES
TRENDS
The price of Arabica coffee, the most important coffee type, soared from around US$1.50 per pound
at the beginning of 2010 to US$3.00 in April 2011. This price spike did not greatly affect German
retail selling prices of coffee products in 2010 because most competitors kept prices low for as long
as possible due to the strong level of competition in the marketplace. In particular, standard fresh
ground coffee is very price-sensitive. However, in January 2011, when raw coffee prices continued
to climb, most players found themselves unable to sustain low retail prices.
COMPETITIVE LANDSCAPE
Having neglected coffee pods for a long time, domestic manufacturer Krüger GmbH & Co KG
introduced its own pod system to the market in November 2010. The system is called K-Fee and
was promoted in the popular Bild newspaper with the nickname “Volks - Kaffeemaschine”, meaning
“people’s coffee machine”. The brand claims to offer decent quality at a cheap price. However, the
share of the system in coffee pods remained low in 2011 at less than 2% in value terms and 1% in
volume terms. Apparently, the simple design of the machine was not liked by consumers and the
price of the pods was not attractive as it was a little cheaper than Tassimo and Nescafé Dolce Gusto
hard pods, but much higher than soft pods.
PROSPECTS
One main factor driving the coffee category is the consumer preference for convenience, which is
expected to intensify over the forecast period. Germans today like to have many activities in their
spare time, although spare time is rare for the working population. This lifestyle is not expected to
change over the forecast period. Condensed work flows along with relatively low unemployment

8. will drive the need for coffee products that are quick and easy to prepare. Even curricula in
universities have become more condensed over the past few years.
CATEGORY DATA
Table 27 Retail Sales of Coffee by Category: Volume 2006-2011
Table 28 Retail Sales of Coffee by Category: Value 2006-2011
Table 29 Retail Sales of Coffee by Category: % Volume Growth 2006-2011
Table 30 Retail Sales of Coffee by Category: % Value Growth 2006-2011
Table 31 Fresh Ground Coffee: Standard Vs Pods 2006-2011
Table 32 Instant Coffee by Type: % Value Breakdown 2007-2011
Table 33 Coffee Company Shares by Retail Value 2007-2011
Table 34 Coffee Brand Shares by Retail Value 2008-2011
Table 35 Forecast Retail Sales of Coffee by Category: Volume 2011-2016
Table 36 Forecast Retail Sales of Coffee by Category: Value 2011-2016
Table 37 Forecast Retail Sales of Coffee by Category: % Volume Growth 2011-2016
Table 38 Forecast Retail Sales of Coffee by Category: % Value Growth 2011-2016
Table 39 Fresh Ground Coffee: Forecast Standard Vs Pods 2011-2016
Other Hot Drinks in Germany - Category Analysis
HEADLINES
TRENDS
Total volume sales of other hot drinks grew by 2% in 2011, generally in line with the review period
average. Most of this growth derived from chocolate-based flavoured powder drinks, which are
usually consumed by children, and malt-based hot drinks. Malt-based hot drinks are usually
consumed by older generations, but with Ovomaltine the Swiss company Wander AG has
established a malt drink that is being consumed by a growing number of young Germans as an
energy drink.
COMPETITIVE LANDSCAPE
Nestlé saw a strong performance from its brands in chocolate-based flavoured powder drinks and
malt-based hot drinks in 2011, thus extending its lead in other hot drinks to a 33% value share.
Nestlé’s position can be attributed to several variants of its brand Nesquik in chocolate-based
flavoured powder drinks and the Caro brand in malt-based hot drinks.
PROSPECTS
Other hot drinks is projected a 2% off-trade constant value CAGR and a 1% total volume CAGR to

9. reach €260 million and 62,637 tonnes in 2016. Demand for other hot drinks will be limited by the
falling number of children, the main consumers of hot chocolate drinks. Moreover, a lack of
innovation will negatively impact the sales performance of this hot drinks category.
CATEGORY DATA
Table 40 Retail Sales of Other Hot Drinks by Category: Volume 2006-2011
Table 41 Retail Sales of Other Hot Drinks by Category: Value 2006-2011
Table 42 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2006-2011
Table 43 Retail Sales of Other Hot Drinks by Category: % Value Growth 2006-2011
Table 44 Other Hot Drinks: Standard Vs Pods 2006-2011
Table 45 Other Hot Drinks Company Shares by Retail Value 2007-2011
Table 46 Other Hot Drinks Brand Shares by Retail Value 2008-2011
Table 47 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2011-2016
Table 48 Forecast Retail Sales of Other Hot Drinks by Category: Value 2011-2016
Table 49 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2011-2016
Table 50 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2011-2016
Table 51 Other Hot Drinks: Forecast Standard Vs Pods 2011-2016
Tea in Germany - Category Analysis
HEADLINES
TRENDS
Tea registered a modest performance during the first months of 2011 because the temperature was
relatively warm for the time of year. But over the year as a whole tea put in a good performance,
recording total volume growth of 1%. Tea achieved positive growth in every year of the review
period except 2009. This enduring growth can be generally attributed to the health and wellness
trend and the fact that tea is seen as a lifestyle drink.
COMPETITIVE LANDSCAPE
The presence of international tea brands has always been weak in Germany. However, in late 2010,
Unilever made a second attempt to establish its Lipton tea brand in the German market. The brand
is now available in 15 variants at Rewe and Toom supermarkets and through Amazon. The brand is
positioned as premium and offers pyramid tea bags. The brand’s variants include many fruit/herbal
tea blends and green tea as the company’s first attempt to enter the German market failed several
years ago because it had been overly focused on black tea.
PROSPECTS

10. The health and wellness trend benefits tea more than coffee and cocoa drinks as the positive effects
of many kinds of tea are more trusted than any positive effects of coffee or cocoa. So, while coffee
will remain the most popular type of hot drink in Germany in terms of flavour and thus also
lifestyle, tea will benefit the most from its supposed effects on health and wellbeing. The increasing
popularity of tea shops in Germany will also boost sales. Total tea volume sales are thus projected
to increase by 5% over the forecast period to reach 58,000 tonnes. Both the on-trade and off-trade
are expected to see positive growth.
CATEGORY DATA
Table 52 Retail Sales of Tea by Category: Volume 2006-2011
Table 53 Retail Sales of Tea by Category: Value 2006-2011
Table 54 Retail Sales of Tea by Category: % Volume Growth 2006-2011
Table 55 Retail Sales of Tea by Category: % Value Growth 2006-2011
Table 56 Tea: Standard Vs Pods 2006-2011
Table 57 Tea Company Shares by Retail Value 2007-2011
Table 58 Tea Brand Shares by Retail Value 2008-2011
Table 59 Forecast Retail Sales of Tea by Category: Volume 2011-2016
Table 60 Forecast Retail Sales of Tea by Category: Value 2011-2016
Table 61 Forecast Retail Sales of Tea by Category: % Volume Growth 2011-2016
Table 62 Forecast Retail Sales of Tea by Category: % Value Growth 2011-2016
Table 63 Tea: Forecast Standard Vs Pods 2011-2016
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