Deals
Illy Seeks Independence by Partnering With JAB on Capsules
- JDE to produce Nespresso-compatible capsules under Illy brand
- Alliance comes as Coke, Starbucks plan new coffee expansion
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Illycaffe SpA is teaming up with one of Europe’s richest families and Mondelez International Inc. to sell branded capsules that work in Nespresso machines worldwide, seeking a boost that will allow the Italian brand to stay independent.
Illy, one of the most prized brands in coffee, said it’s refusing to sell out, even as the coffee business consolidates around Nestle SA, Starbucks Corp. and JAB Holding Co., the investment vehicle for Austria’s Reimann family and others. Instead, it’s granting a worldwide manufacturing and distribution license to closely held Jacobs Douwe Egberts, which is controlled by JAB and counts Mondelez as a minority shareholder.