Illycaffè and Gruppo illy (A): Expanding Beyond Gourmet Coffee

Illycaffè and Gruppo illy (A): Expanding Beyond Gourmet Coffee

By
Glenn Carrol, Victoria Chang, David Hoyt, Hayagreeva Rao
2010|Case No.SM188A

Illycaffè is a family company, founded in 1933. It grew to become an internationally successful company focusing on the premium coffee market based on an uncompromising quest to provide the perfect cup of coffee. In 2003, the company decided to diversify, and two years later began purchasing small companies that produced premium teas, chocolates, candied fruits, and wine. These companies, as well as illycaffè were included in the Gruppo illy holding company. The case describes illycaffè, its products and strategy, as well as the rationale for diversification.

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