Illy sells 70 million euro bond

Illy sells 70 million euro bond

An increasing number of companies in the coffee market are forming ever bigger mergers, which has prompted coffee maker Illycaffé to sell a 70 million euro bond. The money will be used to strengthen its market share.

Aim: to double turnover

Unlike Mondelez and DE Master Blenders, Illycaffé does not want to consider mergers and it has decided to remain on its own. In order to compete with the major rivals, it has decided to cash a 70 million euro bond. Previously, it had considered heading to the stock exchange, but has now decided against that move.

 

"We are a family business and we have two things to protect. One is the dream of the founder to offer the greatest coffee in the world and the other is our family name. This requires a long-term vision and cannot be achieved with quarterly results,” CEO Andrea Illy said.

 

In 2014, Illycaffé managed a 4.5 % turnover increase to 391 million euro, but it aims to double its turnover in the next 10 years and have 600 stores worldwide. It also wants to open another front, which is to compete with Nestlé and its Nespresso pads in the premium coffee market.

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