Hamburg, March 28 - Germany's 2007 coffee sales rose slightly but roasters were unable to pass on rising commodity prices and profits are being squeezed sharply, the head of Germany's coffee industry association said on Friday.
Germany consumed 512,020 tonnes of green coffee in 2007, up 1,600 tonnes on the year, said association chief executive, Holger Preibisch.
He said even the small rise was an achievement at a time when sluggish economic growth meant sales of drinks such as beer were falling.
More young Germans, who once shunned coffee as a drink for older people, were now drinking it, turning away from previously popular drinks like carbonated and other drinks, he said.
"Coffee is sexy again," he said. "The coffee shop culture is booming as is the popularity of such drinks as espresso and latte macchiato."
"The German drinks market is currently very difficult as people are seeking to save money, we are pleased with the sales rise," he said.
"Coffee shops and Italian-style coffee bars have opened everywhere and coffee now has a modern image."
Sales of drinks such as espresso and cafe crema rose by 20 percent on the year in 2007.
Sales of coffee pads for specialist household machines rose by 50 percent. The association said it believed the rise in coffee pad sales reflected the growing number of single Germans who wish to brew individual cups quickly.
Despite the rise in sales, 2007 turnover by Germany's coffee industry was unchanged on the year at 4.25 billion euros ($6.70 billion).
The average 2007 retail price for a standard 500 gram pack of coffee fell to 3.76 euros from 3.79 euros in 2006.
A supermarket price war meant roasters were unable to pass on the rising costs of purchasing green coffee on international market.
"The rise in sales should have meant a rise in turnover but this did not happen," he said. "Roasters did not only face a rise in the cost of purchasing green coffee, they also faced large increases in energy and transport costs, and coffee is a very energy-intensive industry."
"The industry has simply had to absorb these extra costs, profit margins are under significant pressure," he said.
"Economically, it was a very difficult year for the industry."