Italian coffee maker indicates it is willing to sell a stake in the firm as it seeks to expand branded coffee shop concept in the US
A independent coffee shop in Utrecht, The Netherlands, bearing illycaffè branding
Premium Italian coffee brand, Illycaffè, has announced plans to grow its US branded coffee shop portfolio from around 17 cafés to more than 200. According to a Reuters
report, Illy has appointed Goldman Sachs to find a US-based retail partner to help facilitate the expansion, with the heritage brand indicating it is willing to sell a stake in the currently 100% family-owned company.
Illy already has an established coffee shop presence in over 30 international markets across Europe, the Middle East and Asia, with a limited presence in the Americas and Africa. An estimated seven million cups of Illycaffè coffee are served at hospitality businesses around the world daily.
In the US, the Italian coffee brand will be seeking to harness growing consumer demand for premium coffee concepts. However, the roaster faces stiff competition in an already crowded and highly competitive branded coffee shop market dominated by established firms such as Starbucks and Dunkin, as well as JAB Holdings’ sizeable portfolio of coffee brands.
Founded in 1993, Illy recorded revenues of €483m ($528m) in 2018 with profits of €75.3m.