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FoodBev Media

28 March 2008

Coca-Cola and illycaffè launch RTD espresso

Coca-Cola and illycaffè launch RTD espresso

Through the joint venture, Ilko Coffee International, consumers in 10 European countries will be able to purchase three premium ready to drink coffee products.

The products are:

Caffè: bold, full-bodied character, real Italian ‘chilled caffe.’ The first ready to drink coffee to offer black (no milk) espresso based coffee. Cappuccino: intense uplifting aromas of illy espresso, blended with milk and dark cacao. Latte Macchiato: smooth, fresh illy espresso experience, swirled with milk.

The products will be available in premium cans (15cl for Caffè and 20cl for the milk variants). All three offerings will be available in 10 European Coca-Cola Hellenic markets including Austria, Croatia, Greece and the Ukraine. The initial launch is a result of a joint venture between Ilko Coffee International and Coca-Cola Hellenic.

Additional countries in Europe, Asia, North America, Eurasia and the Pacific are slated for expansion throughout the remainder of 2008 and into 2009 and will be delivered through the Coca-Cola system.

The highly profitable RTD coffee category globally is valued at just under $16 billion and has experienced several years of growth that is expected to continue. Globally (excluding Japan), the ready to drink coffee category has grown at an average rate of 10.1% over the past five years.

“When we announced the partnership between The Coca-Cola Company and illy a few months ago, we committed to deliver the perfect ready to drink espresso experience,” said Muhtar Kent, President and Chief Operating Officer, The Coca-Cola Company. “Today, we believe we have delivered on that promise with an authentic Italian coffee experience. I look forward to this partnership delivering these great brands across the globe and enhancing our global leadership in the fast growing RTD coffee category.”

“Over the past few months, we put the effort into bringing to life the illy taste in three new ready to drink espresso based products,” said Andrea Illy, illycaffè chairman. “Now, our objective is to give consistency – together with Coca-Cola – to what premium ready to drink coffee is. Coca-Cola in its history has invented entire new product categories. illycaffè is the company that greatly contributed to the definition of the espresso category. Together we will redefine how people engage with a ready to drink coffee in order to experience a true small luxury pleasure.”

The companies announced an agreement in October 2007 to focus on premium ready to drink coffee based beverages. Ilko Coffee International is based in Milan and will be led by Vinay Kapoor, a Coca-Cola executive with over 14 years of successful experience across a number of geographies and across multiple functions.

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