Italy’s Illycaffè acquires its UK distributor amid Brexit uncertainty

ITALY – Illycaffè, Italian coffee company has acquired the UK’s Illy division distribution business from Euro Food Brands, and will now directly manage its UK distribution operations.

The acquisition includes the complete transfer of business, assets and Euro Food Brands staff responsible for the distribution of Illy coffee products in the UK.

Illycaffè claims that the move signals the company’s intention “to keep on investing in the United Kingdom, despite Brexit uncertainties.”

Euro Food Brands has been illycaffè’s UK distributor for over 25 years, and Illycaffè says that the company will continue to grant operational support to the subsidiary for retail and ecommerce customers.

Illycaffè said that the new subsidiary will be responsible for Illy products. Based in Brackmills, Northampton, the unit will also recruit new staff to expand operations.

Illycaffè claims that the move signals the company’s intention “to keep on investing in the United Kingdom, despite Brexit uncertainties.”

Massimiliano Pogliani, chief executive of illycaffè said: “We evaluated this move carefully, and decided it was now time to further develop this strategic market by strengthening our focus and efforts there.

“By internalising the distribution, we will be able to directly steer the development of the Illy brand and grow the relationships we have with our UK customers.

“We will keep investing in the UK market in order to really boost our presence there.

“I would like to take this opportunity to warmly thank Euro Food Brands, which has been distributing Illy products during the last 25 years, significantly contributing to the success of our brand in the United Kingdom,” Massimiliano added.

Euro Food Brands also distributes food products for multinational companies including Campbell’s Soup and Barilla’s pasta to Britain.

Last month, chairman Andrea Illy told Reuters the group was keen to accelerate growth and could consider a strategic partnership to expand its retail network of 259 outlets.

The coffee roasting company has since opened a new outlet at Vancouver International Airport and is also set to add another 2,000-square-foot outlet in in Merchants Square, Williamsburg.

In the beginning of August, IIlycafé also announced the expansion of its e-commerce business into Canada, making the country the fourteenth to have a direct-to-consumer illy eShop.