Coffee firms roasted

Bosses from coffee companies Tchibo, Melitta and Dallmayr worked together to keep their prices artificially high, a competition watchdog has ruled.

Germany's cartel office has imposed fines amounting to almost 159.5 million euros against the coffee producers.

The fine is against the three coffee roasters and six employees who were deemed to be responsible. There were several price fixes from the beginning of 2000 until the company was investigated in July 2008.

The Bonn-based cartel office said that a circle of company leaders and sales bosses had met to fix prices on products that included coffee beans, espresso coffee and ordinary filter coffee.

Dates and periods as well as the scope and level of the price rises were agreed upon.

Five price hikes were set up between 2003 and 2008. The effect of just two of these increases -- in winter 2004 and spring 2005 -- led to an average price increase of a euro on a 500g pack of coffee.

Melitta Coffee spokeswoman Anette Kahre said the firm would appeal against the fine and that it had cooperated fully with authorities in the investigation.

The company also regretted what had happened, Kahre added, and it had "made arrangements for such a thing not to happen again."

"Fine is completely excessive"

Dallmayr said the fine was "completely excessive" and that taking into account tax, German coffee was the best value in Europe. There was no comment from Tchibo, although it did confirm the amount of the fine.

The cartel office said that the fines were still not legally binding and that the companies had an opportunity to put forward objections.

It added that further investigations were also taking place into numerous coffee producers, including cappuccino producers, and are expected to be completed in the first half of 2010.

rc/AFP/dpa
Editor: Ranty Islam