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Italian Coffee Brands See Revenue Growth In H1 2023

By Branislav Pekic
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Italian Coffee Brands See Revenue Growth In H1 2023

Italian coffee company Illycaffè recorded a 5% year-on-year increase in turnover, to €278.5 million, in the first half of its financial year, driven by growth in all key markets.

In the US, the brand grew by 16%, to €51 million, across all channels, despite an unfavourable exchange rate.

The group's HoReCa segment recorded 27% growth, while the e-commerce channel grew by 20%, mainly driven by Amazon.

Illycaffè is aiming to double its turnover in the US, which it hopes to make its second-most-important market.

The group reported a profit increase of 21% in the first half, as a result of organic growth in all of its main markets and greater operating efficiency.

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Out-of-home sales increased 16%, with Illycaffè confirming its leadership position in the super-premium segment, according to chief executive Cristina Scocchia.

Scocchia also announced the signing of a three-year exclusive distribution agreement with the Hangzhou Onechance Tech (Chancemate) group, boosting the company's presence in the e-commerce business in China, where it is aiming to triple its business.

Caffè Vergnano

Elsewhere, family-run coffee roaster Caffè Vergnano closed 2022 with a total gross turnover of €99.2 million, up 12% on the previous year, as a result of the recovery of the HoReCa and export channels.

The company reported a net loss of €425,000, compared to a net profit of €3.5 million a year earlier, with 27% of its turnover achieved in international markets.

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Its growth trend continued in the first six months of 2023, in which sales were up 9% year-on-year, driven by the HoReCa channel (+16%), while gross profit was 11% higher for the period.

The company, which is 30% owned by Coca-Cola HBC, is present in 90 countries around the world.

Caffè Borbone

Another major name in Italian coffee, Naples-based Caffè Borbone, reported a 15% annual revenue growth to €153.7 million in the first half of 2023,  while EBITDA grew 21% on 2022.

According to CEO Marco Sciavon, Caffè Borbone has consolidated its leadership position in the single-portion sector, despite recent cost increases and competitive pressures on the market.

New product launches in 2023 include Leggera Blend, a coffee with 50% less caffeine than the Nobile blend, and Crema Fredda Caffè, a coffee-based dessert.

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