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Supply Chain

Retail Sales Of Roasted Coffee Decline In Italy

Roasted coffee sales in the modern retail channel in Italy totalled €700 million in the first half of 2022, recording a 1.4% increase in value but a 5.8% decline in volume terms, due to higher prices.

Like all other commodities, coffee sales are suffering due to a sharp rise in prices of raw materials.

Sales of moka (-8.8%), capsules (-2.1%), espresso (-15.8%), beans (-1.2%) and filters (-1.1%) were down in volume, according to research by IRI, while coffee pods were the only segment to see growth both in value (+27.6%) and volume (+8.5%).

Sales By Retail Channel

Roasted coffee sales were down in all retail channels: hypermarkets (-3.9%), supermarkets (-5.7%), independent (-5.2%), with discount stores seeing the biggest decline (-7%), IRI said.

According to data from July, coffee prices per kilogram in discount stores has increased by 16.4%, double that of the retail market as a whole (+8.1%).

Over the past 12 months, coffee traded on international exchanges has increased by around 50%, and compared to the lows reached in late 2020, prices have risen by well over 100%. This increase in the cost is leading to reduced volumes.

illyCaffè Refuses To Pass On Price Increases

A leading Italian coffee producer, Trieste-based illyCaffè, for the moment, has no intention of passing the increases in energy and coffee prices on to consumers.

Speaking to the Italian news agency Adnkronos, CEO Cristina Schocchia said, "We will try to absorb these skyrocketing raw material prices by reducing our margins. However, should the situation worsen in the coming months, we would then be obliged to act accordingly."

© 2022 European Supermarket Magazine – your source for the latest Retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.

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