Good old coffee competition: Italian coffee maker Illy brings premium coffee to independent cafes

Illy has a reputation in the US for producing high quality, premium coffee, as well as all things coffee — espresso machines, french press, coffee and espresso tins, and now even artist-designed coffee cups. Unlike Starbucks, who has somewhat of a reputation for over-priced mediocre quality coffee beans and paraphernalia, Illy seems to be able to live up to their high-end prices. The Wall Street Journal reported on a business move that the Italian coffee company has been working on for years, that may just step up the coffee competition for premium coffeehouse coffee, forcing Starbucks to face its lower-priced, lower-quality competitors on one end (Dunkin Donuts and McDonald's), but its higher-priced, higher-quality competitors as well.

Illy premium coffee?

If you haven't tried Illy coffee yet, it's worth the $3. The Italian coffee company has been around for more than twenty years, although their US presence has been more recent. Illy coffee is sold in Whole Foods, and at many restaurants and hotels. There is in fact an Illy cafe here in Washington, on New Hampshire Avenue next to the Renaissance M Street Hotel. It is an excellent place to stop in for a great cup of coffee or espresso, and has garnered praise from Washingtonians looking for reliable, premium coffee.

What is the Illy coffee deal?

About three years ago the Italian company began a program they call 'Artisti del Gusto", the 'Artists of Taste', in which Illy coffee would sign deals with independent coffeehouses, at first in Italy, and just this past year in the United States. What happens is, the coffeehouse agrees to sell only Illy coffee for at least three years, they also have to live up to Illy standards of quality — baristas better be up to par on milk foaming and espresso pulling, as well as knowledge of how to care for an espresso machine. In exchange, Illy provides the coffee, Italian espresso machines, drink recipes, coffee cups, artwork, training, and of course, their name.

American coffeehouses claim to have seen higher coffee revenues since signing with the Italian coffee company. Part of this is of course due to the ability to charge higher prices for premium coffee, which people do seem to love. For Cafe Nineteen owner in Atlanta, it is also a way for independent coffeehouses to compete with Starbucks.

So far there are 28 Illy-backed independent coffeehouses in the US, with 100 more planned over the next three years. Illy coffee also plans to expand into Canada and Mexico. This does step up coffee competition, although Starbucks still has the majority stake with 11,000 outlets. Coffee drinkers will at least have more options when searching for really good coffee, although there is always the fear of the chain product spiraling out of control, losing quality with every new location. For now at least, Illy is giving us Italian coffee with convenience.

Source name: Examiner.com