Own label instant coffees are made with the same sort of coffee beans as their branded counterparts. The only difference is that the retailers control the pricing and, as retail brand owners, they are not held to ransom for shelf money. The Consumer Association magazine Which? is advising readers to switch to cheaper own label alternatives. To stand up its story, Which? gives the example of a 200g jar of Nescafé Original, which was selling for five and a half quid in supermarkets last year and is now the thick end of eight quid a pop on Ocado. Given the scale of Nescafé’s economies of scale in the procurement and manufacturing stages, how does one explain a 30% year on year price rise? Sure, the beans are more expensive, but what does the future hold for premium home delivery shopping channels?
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