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Greek population spends 1,2 billion euro on coffee

23 January 2010 / 23:01:07  GRReporter
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Greeks spend about 1,2 billion euro per year in order to drink their coffee outside with friends in a café or in a plastic cup in the hand on the street. The commerce with coffee turns out to be a sector which helps for the positive growth of the economy by registering an increase of 15% to 18% each year. There is a war starting on the coffee market in Greece after the big players in the business started to lower the prices of certain types of coffee.

In the time of a financial crisis the commercial chains introduce new practices for decreasing the value of the end product or in other words a cup of hot espresso. “When the consumers have financial difficulties , this affects all sectors of the economy,” says the manager of the Greek branch of the Starbucks chain Yannis Kaflakakos. Along with the evident decrease of the purchasing power on the market the coffee chains and the fast foods start to compete in offering cheaper coffee.

In 2009 Starbucks lowered the price of a cup of regular espresso from 2,2 euro to 1,5 euro. At the same time they presented in their menu a cappuccino with a lower price, but also smaller in quantity. The main purpose is to keep the clients, who can afford to get the same quality at a competitive price. Initially the price of a small cappuccino was 3,5 euro, and after the decrease in Starbucks it is already 2,9 euro. In the EVEREST chain the price of the coffe is closer to the one in the rest of the European countries. Since the beginning of the year the Greek coffee and breakfast chain keeps the price of one euro for an espresso in a plastic cup. The price is considered to be particularly low compared to the average price in Greece where for a cup of cold frappe in the coffee shops the price to be paid is about 3,5 euro. Kaflakakos points out that they drink their coffee a lot slower than the Italians for example and also adds: “They sit for hours, it is not like Espresso Bars.” The coffee in the trade center Factory Outlet nearby the Athens airport “Elevteros Venizelos” also offers coffee for one euro. Another marketing strategy for attracting the coffee lovers is 10 products for one euro each. The model was introduced on the Greek market by the fast food chain and is also offering a coffee and cappuccino for just one euro.

Tags: SocietyEconomyMarkets coffee
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