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Germany: Aldi is allowed to sell coffee at a loss

Discount Retail Chain Aldi Süd has emerged victorious in a lawsuit initiated by the coffee roaster Tchibo. The judges found no issue with selling coffee below production costs. For the Hamburg-based company, this ruling signals a concerning trend for the entire industry.


Once again, Tchibo faced a legal setback against Aldi Süd regarding allegedly low coffee prices. According to a spokeswoman, the 6th Cartel Senate of the Düsseldorf Higher Regional Court dismissed the appeal against the initial verdict. The decision is not yet final, and Tchibo can appeal to a higher court. A written explanation of the judgment is still pending.


The Hamburg coffee roaster accuses the discounter of repeatedly selling its own brand Barissimo coffee below production costs since late 2023, viewing this as a legal violation. Tchibo sought to legally prevent Aldi Süd from continuing this practice, arguing that such aggressive pricing harms competition and consumers.


The judges disagreed, stating there was no unfair conduct by the discounter. Aldi Süd is permitted to sell coffee below production costs during discount promotions. Tchibo spokesman Arnd Liedtke expressed disappointment, saying the court missed an opportunity to address a problematic trend in the German food trade.


The legal battle might not be over yet. Tchibo has one month to request a review of the judgment, which would involve the Federal Court of Justice. "We will evaluate the written judgment and consider further actions," said the Tchibo spokesman. Aldi Süd declined to comment.


"Legally soundly justified"

Tchibo's initial lawsuit was unsuccessful at the Düsseldorf Regional Court in January 2025, prompting an appeal. According to Tchibo, Aldi Süd has occasionally sold certain coffee types at significant losses, reportedly two euros per kilo or more. The coffee is produced by Aldi's subsidiary, New Coffee.


Industry experts suggest the case highlights the shifting power dynamics in retail. "The situation shows how food chains exert pressure on brand manufacturers by introducing their own brands and entering production," said Jens-Uwe Franck, Professor of Commercial and Antitrust Law at the University of Mannheim. The prohibition against selling food below cost price does not extend to selling below production costs. The court provided a "legally sound justification" for this.


The Federal Court of Justice addressed a similar case years ago. In 2002, the Cartel Senate barred the US retailer Walmart from offering certain low-cost deals. At that time, the judges objected to sugar being sold below its purchase price, which could harm smaller competitors due to Walmart's market dominance in Germany.


Basic price items like coffee or butter are significant in the food trade, as prices are closely monitored. Retailers often discount them to draw customers. "Generally, antitrust law permits strong market players to use a mixed calculation, selling some products at a loss for promotional purposes," said antitrust lawyer Franck.


Germans drink 163 liters of coffee per year

Coffee traders and roasters are currently facing tough times. Green coffee prices have surged, mainly due to poor harvests. According to the International Coffee Organization (ICO), the average price for a pound of green coffee in December last year was around three US dollars, up from $1.82 in February 2024. Consequently, Tchibo has increased its prices in February 2025 and plans to do so again soon.


German consumers are paying significantly more for coffee than in previous years. According to the Federal Statistical Office, coffee bean prices were nearly 55 percent higher in December compared to 2020, and over 21 percent higher than the previous year. The German Coffee Association reports that an average of 163 liters of coffee is consumed per person annually.


There are over 900 roasters across the country. The association notes that over one million tons of green coffee are imported into Germany each year, with a large portion coming from Brazil. In 2025, Germany imported 5.4 million 60-kilo bags of coffee from Brazil, making it the largest buyer of Brazilian coffee, as reported by the coffee exporters' association Cecafé.



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