7.2.
Dallmayr
(203) By letter of 27 April 2015, Dallmayr replied to the request for market information by the Commission.
(204) Dallmayr informed the Commission that coffee roasting is either performed as a stand-alone business or vertically integrated within a company. Larger companies usually perform roasting in-house. The sourcing function is typically integrated with the roasting function. Dallmayr does not outsource the roasting function.
(205) Dallmayr considers the payment of a royalty by a third party that provides the roasting services rather unusual. In fact, Dallmayr would expect the customer to pay the roaster, not the other way around.
7.3.
Nestlé
(206) By letter of 20 May 2015, Nestlé replied to the Commission's request for market information. Nestlé indicated that the three elements important in the value creation for coffee are the quality (the type of bean), the darkness (achieved by roasting), and the grind size. They also indicated that they do not and would not outsource the roasting function due to the importance of roasting to the flavour development of the product.
7.4.
Melitta
(207) By letter of 26 May 2015, Melitta replied to the Commission's request for market information. Melitta indicated situations in which they could outsource the roasting of coffee beans. These situations are: (i) when machinery is not available in its factory to produce specific types of products, such as specific packaging formats or soft pads; (ii) when machinery is not available in its factory to produce soluble coffee; and (iii) when sales exceed the available roasting and packaging capacities at its factory. In that last case, when roasting and packaging is outsourced due to capacity constraints, green coffee beans from Melitta are sent to the supplier who roasts and packs the coffee to a finished product. That finished product is then delivered to Melitta. Such a contract was in place with the same supplier for a number of years.
(208) To assure the quality and taste of the finished product, Melitta either provides roasting curve prescriptions or defined taste profiles to the third party to whom the roasting is outsourced.
(209) The contractual arrangement does not foresee any royalties paid to Melitta when outsourcing the roasting activity.
7.5.
Company Y
(210) By letter of 27 April 2015, Company Y replied to the Commission's request for market information. The Commission requested a clarification by a letter of 11 May 2015, to which Company Y replied on 21 May 2015.
(211) Company Y does not outsource the coffee roasting function to third parties. The roasting is ensured by a group company designated as a toll manufacturer by Company Y. This coffee roasting company does not pay any royalty for the use of the intellectual property or the know-how used in the roasting process.
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