The Development History of Italian chain Coffee Brand illy realized net profit growth in illy2020 year

It is reported that Italian coffee chain illy coffee released its annual report for 2020 on May 3.

According to the annual report, Italian coffee brand Illyachieved net profit growth in 2020.

It is worth noting that the net increase in profits occurred in the context of the COVID-19 coronavirus epidemic.

Illy Italian Coffee still achieved net profit growth in 2020 thanks to the excellent performance of compatible capsules. According to Lianshang.com, in 2020, sales of Italian merchant super channels increased by 30%, market growth rate reached 10%, and revenue increased, which mainly depended on household consumption on e-commerce platforms and modern distribution channels. Illy earned an income of 446.5 million euros, down only 14% from the previous year.

In addition, Italian coffee brand illy announced in March that it had completed an equity transfer financing of 200m euros, invested by Rhone Capital of New York, which accounts for about a stake in illy20%, with a post-investment valuation of 1 billion euros. According to reports, this is the first time that the family business has accepted non-family members' investment since it was founded in 1933. The purpose of the financing is also to expand the US market. At the same time, illy said it will accelerate overseas expansion in the future.

According to public data, the Italian coffee brand illy (Italian) was founded in 1933 and is known as Italy's national treasure coffee. It is also one of the largest independent coffee roasting companies in the world. The brand was founded in Italy in 1933 by Francesco Illy (the inventor of the modern espresso machine). Since then, illy Group has gradually expanded its business from suppliers' espresso machines and coffee beans, such as coffee, Domori chocolate, lemon tea, Mastrojanni wine and Agrimontana jam, and now the brand CEO is the third generation of the family.

Compared with other coffee brands, illy coffee is characterized by direct supply to enterprises or retail to consumers.

Italian coffee chains illy and Starbucks entered the Chinese market at about the same time, but they cannot compete with Starbucks in terms of stores, but this does not mean that illy is weaker than Starbucks, because their main centers are different. according to statistics, more than 7 million cups of illy coffee are sold worldwide every day, but illy Coffee is actually more like an industrial brand, focusing more on the B-end market. Mainly for high-end hotels, catering brands, coffee shops to provide coffee-making materials, including coffee beans, coffee powder and coffee machines, so there are not many cafes, until the age of illy87 began to slowly transition to C-end development.

Now, after 20 years of development, the Chinese market has also become one of the markets that illy wants to occupy. In stores, the first offline concept store "illy Caff è Italian Cafe" in China was opened in Shanghai in 2019. At present, illy has six stores in the Chinese market. In the future, it is planned to open more stores in Beijing, Shanghai, Dalian and other cities. In terms of business, more than 70% of illy's business in China comes from hotel and catering enterprises. One of the biggest customers is Marriott Hotel. in terms of product sales, illy currently has brand flagship stores in Tmall and JD.com, and the best sellers are instant coffee powder and hanging-ear coffee bags.

Finally, it is predictable that illy, which receives external financing for the first time, will accelerate its overseas expansion.

* Image source: Internet