Coffee Maker Illy Competes with Starbucks
Italian coffee maker IllyCaffè SpA has a plan for adding coffee shops and competing against Starbucks according to an article in the Wall Street Journal by Julie Jargon.
Illy is getting its name in front of more customers without having to buy or rent its own shops by using independent coffee shops. The company is signing contracts with cafes in the U.S. that agree to serve Illy coffee exclusively and have quality control.
For the independent coffee shops, aligning with a premium coffee brand is a way to distinguish themselves from other chains and other independent shops as well as charge higher prices.
Illy began signing up independent shops, mostly in Italy, three years ago in a program called Artisti del Gusto, or Artists of Taste. It brought the program to the U.S. in 2008.
Illy supplies shops with Italian espresso machines, coffee cups, artwork, drink recipes and training, and the cafe becomes a certified Illy coffee shop. In return, the shop must agree to serve only Illy coffee for at least three years. Illy staffers in North America visit certified shops to check quality standards.
There are currently 28 U.S. shops operating under Artisti del Gusto certification and Illy plans to add 100 more in the next three years. In comparison, Starbucks has more than 11,000 U.S. outlets.
IllyCaffè SpA is based in Trieste, Italy, and it sells its coffee in high-end grocers and in coffee shops, hotels and restaurants.
