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Tchibo c.e.o. Thomas Linemayr
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Tchibo Whole Bean Coffee
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Tchibo Ground Coffee
By Howard Bryman
European coffee brand Tchibo is entering the United States market with a newly announced distribution deal with Michigan-based distributor Rainmaker Food Solutions.
Tchibo told STiR magazine that new coffee products roasted and packed in the company's facility in Hamburg, Germany will be unique from its overseas offerings and will hit shelves in eight midwestern states this Fall.
In addition to its coffee business in Europe, Tchibo also operates a range of non-food businesses, with extensive retail operations including more than 900 shops, 24,300 outposts at third-party retail outlets, and online stores, according to the company. It employs more than 11,000 people worldwide and generated revenues last year of over $3.6 billion.
For its four blended coffee products launching in the US, Tchibo c.e.o. Thomas Linemayr told STiR that the roast styles will be generally darker than what the company sells in Europe, reflecting what its market research indicates are the dominant tastes in America.
"During our initial rollout, we will listen and learn from consumers, and see how the US market responds to our coffee products," said Linemayr. "The coffee has been newly developed based on a combination of the over 70-year Tchibo expertise and comprehensive market research on the US market… Essentially, we combined the US consumer request for a darker roast coffee, but used the Tchibo expertise to finish it off with a European touch."
The company's products in the United States will be packed to maintain freshness inside gold packaging featuring what it calls its patented "Aroma Protect Technology" that consists of one-way degassing valves as well as a spout and cap system, allowing users to re-seal the bag after opening.
In its published announcement of the expansion, Tchibo expressed that it pursues the expansion now as it sees an opportunity in the recent uptick in at-home coffee consumption in the United States due to cafe and office closures stemming from the novel coronavirus pandemic.
"As the pandemic continues to impact coffee behavior and consumption, consumers are looking for a brand to trust, one providing a reliable, authentic experience from the comfort of home," Linemayr stated in the announcement. "With a strategic commitment to building and delivering a strong foundation of differentiated product, services and solutions, the time is right to bring the Tchibo experience to the U.S. and get the first batches brewed in these new markets."
Chris Mattina, Founder and President, Rainmaker Food Solutions, echoed that perspective.
"With the rise in at-home coffee consumption and continued changing consumer behavior as a result of the pandemic, there has never been a more important time to provide better choices to consumers," Mattina stated in the press release.
Rainmaker Food Solutions' distribution of Tchibo products will begin with a variety of retailers across Illinois, Indiana, Iowa, Ohio, Michigan, Minnesota, Missouri and Wisconsin. Products will be available in ground or whole bean and in an assortment of sizes and formats ranging in price from $9.99 to $17.49.
"In 2021, the plan is to expand nationally, with full market penetration," Linemayr told STiR. "Tchibo will of course always explore other distribution channels, including wholesale and hospitality, however for now our focus is the retail consumer market."