D.E. Master Blenders, the Dutch coffee and tea company spun off by Sara Lee and June, came up slightly short of revenue estimates for the third quarter, largely due to slow sales in Germany.
In the three months through September, revenue was down 1.5 percent to 645 million euros, the company announced in its quarterly trade statement. The company attributed much of the problem to slow sales in Germany due to retail product pricing that “too aggressive.” The country has since reduced prices for its Senseo pod brewing system by 8 percent, it said.
“Our top line performance shows, as anticipated, a mixed picture in the first quarter of fiscal year 2013,” CEO Michiel Herkemij said in a prepared statement. “Our key Western European countries show encouraging performance with high singledigit growth rates in France and Spain and a solid performance in the Netherlands. On the other hand, performance in Germany was negatively impacted by the most recent price increase.”
Among other coffee-related products, the company operates 25 whole bean and ground coffee brands throughout Europe, as well as two portioned espresso brands and nine instant coffee brands.