Tchibo

Tchibo is a German retail and coffee brand founded in Hamburg in 1949 by Max Herz and Carl Tchilinghiryan. Its name is derived from the founders’ names, particularly “Tchiling,” combined with “Bohnen,” the German word for coffee beans. The business began with mail-order sales of freshly roasted coffee, produced at its own roasting facility in Hamburg’s Hoheluft district. Coffee remains the foundation of the brand, but Tchibo developed a distinctive retail model in which coffee shops, supermarket concessions, online channels and packaged-coffee sales are combined with rotating collections of non-food products. The non-food assortment is central to Tchibo’s identity. Its weekly changing “worlds” have included clothing, accessories, furniture, household goods, electronics, electrical appliances, sports equipment and other everyday merchandise. In Germany, this model is associated with the slogan “Every week a new world” (“Jede Woche eine neue Welt”). The company has also extended the brand into services such as travel, insurance and mobile-phone contracts. This combination of a recurring consumable product and limited-period merchandise gives Tchibo a position between a coffee specialist, a convenience retailer and a discount-oriented department store. Tchibo expanded beyond coffee retail during the late twentieth century. It acquired shares in Beiersdorf in 1977 and became the majority shareholder of cigarette manufacturer Reemtsma in 1980. Reemtsma was later sold to Imperial Tobacco in 2002. Tchibo also briefly entered the home-video-game market in 1986 with the Tele-Fever console, although the product sold in very small numbers. In 1997, the acquisition of rival coffee company Eduscho made Tchibo the market leader in Germany, with a reported 20 percent share of the German coffee market at that time. International expansion brought Tchibo stores and coffee distribution to several European markets, including Austria, Switzerland, Liechtenstein, Poland, Hungary, Slovakia, the Czech Republic and Turkey. The company also distributed packaged coffee in a broader group of countries through supermarkets, smaller retailers and online channels. Its direct retail presence has not been equally successful everywhere. Tchibo withdrew from the United Kingdom after closing its British stores by the end of October 2009, although an online shop was later relaunched and the company continued to supply coffee through other channels. In 2016, it acquired the Scottish coffee-roasting company Matthew Algie, strengthening its roasting and coffee-service capabilities in the United Kingdom. Tchibo is owned through Maxingvest AG, formerly known as Tchibo Holding AG. Maxingvest is wholly owned by members of the Herz family and is also the largest shareholder of listed German consumer-goods company Beiersdorf. Tchibo therefore operates as a private, family-controlled brand rather than as a separately listed public company. The business has maintained its Hamburg headquarters and remains one of Germany’s largest retail chains, with more than 1,000 shops cited in reference material, alongside supermarket counters, online commerce and other distribution formats.

Tchibo was established in Hamburg in 1949 by Max Herz and Carl Tchilinghiryan. The founders focused on freshly roasted coffee and initially used mail order to reach customers. Production took place at a company roasting facility in Hamburg’s Hoheluft district. The brand name combines part of Tchilinghiryan’s name with “Bohnen,” meaning coffee beans in German. The company’s later development was shaped by the integration of coffee with retail discovery. Rather than limiting itself to cafés or packaged coffee, Tchibo placed branded displays and counters in shops, bakeries and supermarkets. These outlets sold coffee alongside short-lived assortments of non-food goods. The merchandise changed regularly and eventually covered apparel, accessories, furniture, household products, electronics, appliances, sports goods and other general merchandise. This weekly-cycle retail concept became one of Tchibo’s defining characteristics and was expressed in Germany through the slogan “Every week a new world.” Tchibo pursued broader corporate expansion in the 1970s and 1980s. It purchased shares in Beiersdorf in 1977 and became the majority shareholder of Reemtsma, the Hamburg cigarette producer, in 1980. In 1986, the company made an unsuccessful attempt to enter the home-console market with the Tele-Fever video-game system. The product achieved only limited sales and did not become a lasting part of the business. A major coffee-sector turning point came in 1997, when Tchibo acquired Eduscho. The transaction made Tchibo Germany’s market leader in coffee, with a reported 20 percent share. During the 1990s, Tchibo also expanded its retail and distribution activities outside Germany, establishing operations in several European countries. Packaged Tchibo coffee reached additional markets through supermarkets, smaller retailers and online sales. The company later sold the Reemtsma stake to Imperial Tobacco in 2002 for €5.2 billion, and sold the Davidoff cigarette brand to Imperial Tobacco in 2006 for €540 million; rights to Davidoff café remained with Tchibo. The company encountered difficulties in the United Kingdom. A 2007 reorganisation programme sought to restore growth, while Tchibo GB reduced its retail estate and management structure. In 2008, the company announced that concessions in Somerfield and Sainsbury’s would close, citing difficult macroeconomic conditions. Tchibo subsequently confirmed its exit from the UK retail market, and all British stores had closed by the end of October 2009. The UK online store closed in 2010 but was relaunched in an improved form in 2016. In August 2016, Tchibo acquired Matthew Algie, a Scottish roasting company. This added to the group’s coffee capabilities and gave Tchibo a stronger position in UK roasting and coffee service. The brand’s services portfolio has also included travel, insurance and mobile-phone contracts, illustrating the company’s broader use of its retail relationship with customers. Tchibo is controlled by Maxingvest AG, which changed its name from Tchibo Holding AG in 2007. Maxingvest is owned entirely by members of the Herz family. It is also the largest shareholder in Beiersdorf. Tchibo remains headquartered in Hamburg and continues to operate as a private coffee-led retailer with shops, cafés, supermarket distribution, online channels and frequently refreshed non-food assortments.

• 2016

  Matthew Algie is acquired

  [1]Tchiboen.wikipedia.org

  Tchibo acquires the Scottish roasting company Matthew Algie.

• 2009

  UK retail withdrawal is completed

  [1]Tchiboen.wikipedia.org

  Tchibo closes its remaining British retail stores after a restructuring and market-exit process.

• 2007

  Maxingvest name is adopted

  [1]Tchiboen.wikipedia.org

  Tchibo Holding AG changes its name to Maxingvest AG.

• 2006

  Davidoff cigarette brand is sold

  [1]Tchiboen.wikipedia.org

  Imperial Tobacco acquires the Davidoff cigarette brand from Tchibo, while Tchibo retains rights to Davidoff café.

• 2002

  Reemtsma stake is sold

  [1]Tchiboen.wikipedia.org

  Tchibo sells Reemtsma to Imperial Tobacco for €5.2 billion.

• 1997

  Eduscho is acquired

  [1]Tchiboen.wikipedia.org

  The acquisition makes Tchibo the German coffee-market leader, with a reported 20 percent market share.

• 1986

  Tele-Fever launches

  [1]Tchiboen.wikipedia.org

  Tchibo makes a short-lived entry into the home-video-game-console market with the Tele-Fever system.

• 1980

  Tchibo becomes majority shareholder of Reemtsma

  [1]Tchiboen.wikipedia.org

  Tchibo takes majority control of Hamburg cigarette producer Reemtsma.

• 1977

  Tchibo acquires a stake in Beiersdorf

  [1]Tchiboen.wikipedia.org

  The company purchases shares in Beiersdorf, beginning a broader corporate-investment phase.

• 1949

  Tchibo is founded in Hamburg

  [1]Tchiboen.wikipedia.org

  Max Herz and Carl Tchilinghiryan establish the coffee business in Hamburg, initially concentrating on mail-order sales of freshly roasted beans.

A German coffee-led omnichannel retailer built around affordable quality, frequent product rotation and the discovery value of weekly non-food collections.

• Coffee · 1949

  Tchibo roasted coffee

  Roasted coffee is Tchibo’s foundational product category. The company began with freshly roasted beans sold by mail order and later distributed ground and whole-bean coffee through its own shops, cafés, supermarket counters, smaller retailers and online channels. Coffee provides the recurring purchase base around which the broader retail concept is organized.

• General merchandise

  Weekly non-food collections

  Tchibo’s rotating non-food collections are released in changing themed assortments. They have included clothing, accessories, furniture, household products, electronics, electrical appliances, sports equipment and leisure goods. The limited-period format encourages discovery and repeat visits, and is a defining part of the brand’s German retail proposition.

• Small domestic appliances

  Coffee machines and appliances

  Tchibo sells proprietary and branded coffee-making equipment as well as other electrical appliances through its retail and online channels. These products extend the coffee relationship into the home and support the company’s positioning as a complete coffee-and-lifestyle retailer.

• Coffee

  Davidoff café

  Davidoff café is the coffee-related part of the Davidoff business retained by Tchibo after the sale of the Davidoff cigarette brand to Imperial Tobacco. Tchibo has distributed the coffee brand internationally, including in the United States.

• Consumer services

  Tchibo consumer services

  The brand has extended beyond physical products into services including travel, insurance and mobile-phone contracts. These offerings use Tchibo’s retail and customer relationship to provide additional categories under the same consumer brand.

• 2016

  Acquisition of Matthew AlgieM&A

  Background

  Tchibo sought to strengthen its coffee roasting and service capabilities in the United Kingdom.

  Action taken

  The company acquired Scotland-based roasting company Matthew Algie.

  Aftermath

  The acquisition expanded Tchibo’s UK coffee infrastructure and complemented its wider roasting activities.

  Source

• 2009

  Withdrawal from UK retailStrategy

  Background

  Tchibo cited difficult macroeconomic conditions after its British concessions and stores failed to achieve a sustainable retail position.

  Action taken

  The company sold its UK leases and closed all Tchibo GB stores by the end of October 2009.

  Aftermath

  The UK online store subsequently closed in 2010, although an online shop was relaunched in 2016.

  Source

• 2007

  Business reorganisation programmeStrategy

  Background

  Tchibo presented the programme during a December 2007 staff meeting against a goal of returning the business to growth by 2010.

  Action taken

  The company announced a restructuring programme for employees and subsequently reduced the scale of its UK retail organisation.

  Aftermath

  The programme was followed by UK store and concession closures and the company’s eventual withdrawal from British retail operations.

  Source

• 2006

  Sale of the Davidoff cigarette brandM&A

  Background

  Tchibo separated the cigarette trademark from the coffee-related Davidoff café business.

  Action taken

  Imperial Tobacco acquired the Davidoff cigarette brand for €540 million, while Tchibo retained rights to Davidoff café.

  Aftermath

  Tchibo continued to distribute Davidoff café while exiting ownership of the cigarette brand.

  Sale consideration. €540 million (2006)

  Source

• 2002

  Sale of Reemtsma to Imperial TobaccoM&A

  Background

  Tchibo had become the majority shareholder of Reemtsma in 1980, but later chose to dispose of the tobacco-company investment.

  Action taken

  The Reemtsma stake was sold to Imperial Tobacco for €5.2 billion.

  Aftermath

  The transaction ended Tchibo’s controlling interest in Reemtsma and represented a major shift away from the group’s earlier tobacco holdings.

  Sale consideration. €5.2 billion (2002)

  Source

1. 1Tchiboen.wikipedia.org