Illycaffe Set To Begin Production In US Starting In 2026 – CoffeeTalk

Illycaffe SpA is set to commence production in the United States at the start of next year, as part of its strategy to leverage significant growth within this crucial consumer market, as stated by CEO Cristina Scocchia. The company has engaged in an extensive search for a suitable partner and plans to manufacture 15-20% of its U.S. sales domestically from the beginning of 2026. This initiative aims to enhance flexibility, streamline access to logistics, and foster innovation by being closer to the consumer base.

In 2025, the U.S. market has proven instrumental in driving revenue growth for Illycaffe, with total revenue projected to increase by 10% compared to the previous year, approaching €690 million ($808 million). This growth includes an 11% rise in Italy and a remarkable 19% in the U.S., based on constant exchange rates. A collaboration with Amazon.com Inc. has notably bolstered online sales in the U.S.

However, the past year has been challenging for the coffee industry, particularly for high-end arabica bean prices, influenced by adverse weather conditions and tariffs affecting supply from Brazil. Despite some easing of trade levies by U.S. President Donald Trump, prices remain elevated. Scocchia highlighted that 2024 was another complicated year for supply chains, marked by a staggering 50% increase in the cost of green coffee. Although fluctuations in financial speculation persist, Illycaffe has chosen to restrain price hikes for consumers, which has contributed to a decline in profit margins alongside continued top-line growth.

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