Italian coffee maker IllyCaffe SpA is making a move on Starbucks. Illy is a closely held company based in Trieste, Italy, that makes really delicious coffee. We love it hot or iced. Now Illy is expanding its reach and negotiating deals to be the only coffee served at selected cafes.
For the shops, aligning with a premium brand is a way to differentiate themselves from chains and other independent shops--and to charge higher prices. At Caffe Greco in San Francisco's North Beach neighborhood, owner Hanna Suleiman says sales have increased by 10% and profits by 3% since the shop signed up with Illy a year ago.
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. last year. Illy supplies shops with Italian espresso machines, coffee cups, artwork, drink recipes and intensive training, after which the cafe becomes a certified Illy purveyor. In return, the shop must agree to serve only Illy coffee for at least three years.
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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. The company also is moving the program into Canada and Mexico.
Illy staffers in North America visit certified shops to check quality standards. The stores are routinely scored on how well they steam milk and clean the espresso machines. If cafes aren't performing up to par, Illy provides additional training while reserving the right to yank their certification, says Gregory Fea, chief executive of Illy's North American business.
The more Illy the better, as far as we're concerned.