Coffee brand Illy has signed a licensing agreement with JAB, the company that houses Douwe Egberts. They will be producing and distributing Illy aluminum capsules. For Illy, the capsules are a new addition to the product range.
All for the customer's freedom of choice
Jacobs Douwe Egberts will be producing the coffee capsules of the Illy brand from now on: in the first half of 2019, Douwe Egberts will release the competing coffee capsules worldwide. Massimiliano Pogliano, CEO of Illycaffè, believes that JAB turned out to be the right partner for the first aluminum capsule release. To make matters more complicated: this type of capsule is mostly used in Nespresso coffee machines.
"The quality leader and the market leader are bringing their strengths together to the customer's advantage, who is at the core of this project," says Pogliani. "Millions of coffee lovers will be able to enjoy a new freedom of choice, and that's very exciting."
Prelude to a takeover?
Jacobs Douwe Egberts will produce the capsules and distribute them internationally through the retail branch. Illy will retain the distribution in its native Italy. In addition, Illy will be taking care of other sales channels. The license might be a signal of something more, as JAB recently showed interest in taking over Illycaffè. Daughter company Jacobs Douwe Egberts is already the largest coffee provider in the world. Housing the brands Douwe Egberts, Jacquemotte and Zwarte Kat, the company has a yearly turnover exceeding 5 billion euros.