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German Cartel Office Raids Coffee Makers

Source: Reuters
04/07/2008

Hamburg, July 3 - Germany's cartel office said on Thursday it had raided several coffee roasters on suspicion of price fixing.

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The office was investigating suspicions that retail price collusion had taken place between coffee companies possibly since 2004, a spokeswoman for the agency said.

The spokeswoman declined to name the companies involved.

However, Munich-based coffee roaster Dallmayr said it had been visited by agency investigators.

"Yes, there has been a search of our offices as has taken place at all large roasters," a Dallmayr spokeswoman said. "We are working fully and totally with the authorities to clear up the allegations."

She added that German retail prices for coffee were at a very low level.

Germany's largest roaster Tchibo also said it had been visited by cartel office officials. A Tchibo spokesman said the officials "had asked questions" and that Tchibo would fully cooperate in investigations.

No comment was immediately available from Germany's second largest roaster, the German unit of U.S. group Kraft , or from the third largest, privately-owned Melitta.

Hamburg-based Darboven said it had not been visited by investigators.

The German cartel office has given closer attention to food producers in past months, investigating both the flour and chocolate industries. No action has so far been taken.

Coffee roasters said privately an investigation by cartel authorities had been expected.

Roasters said that as retail price hikes reflect rises in international coffee futures markets, roasters tend to raise prices at similar times.

Roasters have been hit by a dramatic rise in London robusta coffee prices this year although Arabica prices have been relatively stable.



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