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Coffee with milk produced by the Freiburg company Cremo is available in Lattesso, Migros, Coop, Aldi, Lidl and many kiosks. Pick-me-up has a price that many people will gladly pay.
But how much does a retailer earn from such a product? Margins are their best kept secret. When it comes to Lattesso’s takeaway coffee boxes, “K-Tipp” has now apparently gained access to classified documents. For the reference year 2021, these show, for example, that the margin in Migros is significantly higher than previously assumed. Gross margin was previously estimated at around 40 percent, but documents at K-Tipp show a gross margin of over 65 percent.
The calculation for a 250 milliliter lattesso cappuccino is as follows:
- Milk, 190 milliliters: 11 cm
- Arabica coffee and chocolate powder: 8 inches
- Sugar: 1 inch
- Packing: 23 inches
- Production, sales, producer margin: 37 cm
As a result, Migros paid 80 cents for the drink. The retailer, whose retail price is 2.35 francs, has 1.55 francs left. That’s 66 percent or two-thirds of the total price. 1.55 at Migros – about two-thirds. With this gross margin, store costs, fees, taxes and more have to be paid. But net profit should still be proud.
Things could get even better for other retailers. According to the documents K-Tipp has, some spent just 66.5 cents on a lattesso cappuccino.
Retailers dispute the numbers
Neither Migros and Coop nor the manufacturer Cremo make a detailed statement about the figures. However, major distributors say that the specified margins are not correct.
If the gross margin were correct, it would in any case be 2.5 times more than comparable dairy products at retailers in France, for example. By the way, a cappuccino lattesso costs 2.50 francs at Migros today.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
