Coffee Following Upward Trend of Luxury Goods: Illy

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Feb. 14 (Bloomberg) -- Andrea Illy, chairman & CEO at Gruppo Illy, discusses the growing market for premium coffee, his company’s partnerships with Coca-Cola and Samsung, and offers his view of Italy’s economy on Bloomberg Television’s “Market Makers.”

Constantly growing.

There are 380 million consumers buying luxury products in the world and they continuously grow.

We will have 414 million in 2017. copy is following the same trend that it has -- coffee is following the same trend.

You already have a partnership with coke.

Is this a threat to your business?

We have a joint venture.

It illy's strategy is to deliver the highest quality.

The same that you can enjoy in a restaurant is brewed in a bottle that you can buy from coca-cola.

They are one of the biggest manufacturers.

They have other interests.

The strategic intent of coca-cola is to serve soft drinks.

They are not necessarily strategically focus on what we have going on in the coffee market.

It is growing.

Maybe one day we will move up.

You have a partnership with samsung.

Why are you working with samsung?

Next year, there will be the theme of energy for life.

And coffee, it's so important.

The export authority decided to dedicate an entire $5 billion to coffee.

It will be the largest celebration of coffee in history.

We would need to bring online.

To make it accessible for copy drinkers.

For you, what is your number one growth strategy echo the core business is always hospitality.

In cafes and restaurants.

Who benefited more to have a more competitive market.

Italy is not so competitive.

Italy has a problem.

The market is not growing anymore.

We are in a depression.

We now have the gdp per capita which we used to have in 1998. the unemployment is at an all-time record.

This creates a situation where it is difficult to get consumption.

It is always important for a brand to have an internal market before you go internationally.

It is difficult to get confidence to keep people investing.

It is difficult to get credit.

Everything becomes difficult in such a a tax rate.

How much can you invest in such an environment echo this compared to companies in the same market and the global fight for competition creates a difficult landscape.

If you are in a large market with big consumption pulls and you have a competitive market come you can grow much faster.

Can you feel the recovery?

Is a real?

Not yet.

We hit the bottom.

We will stay at the bottom for a while.

The gdp is not declining anymore.

It is stable.

But before it will grow enough to really start reducing the lack of occupation, we need more movement in the reform.

How challenging is it for you to run a family business?

Can you make tough decisions among a family?


We are disciplined.

We learn from our ancestors that the number one to the company is the consumer, not the family.

Consumers, customers, employees, suppliers and the community.

We are the service.

We have a governance system.

We have a lot of influence from external professionals in the business.

It is not too bad.

The challenge is to really nurture the heritage of our brand, which has been created by an inventor and a genius, my grandfather and developed by another incredible mind was my father.

This really puts a lot of responsibility on the intangible value of this wonderful brand.

That was andrea illy.

This text has been automatically generated. It may not be 100% accurate.


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