The US is the second largest market for Illy coffee.
The Italian coffee company Illycaffe will necessarily proceed to raise coffee prices due to the duties imposed by US President Donald Trump’s government this week, its chief executive, Christina Slots.
Slots added that Illy would look at the possibility of constructing a factory in the US, if it is found in the eye of the cyclone, based on Trump’s plans to impose duties in all countries.
“The duties will go to the final price (…) We, as I guess other companies, are trying to calculate the percentage,” he said in a telephone interview.
Limited industry’s profit margins
Industry’s profit margins are already limited due to the increase in the price of fresh coffee beans. Illy maintained its prices last year, despite the increase in Arabica’s price, but in 2025 increased by 4% in total, on average.
Scots said that some of the products sold in the US could possibly be produced in that country, but the rest of the production will remain in Italy, confirming that there will be an investment of 120m euros to double the production capacity. “We are studying feasibility at the moment, but for the construction of a factory (in the US) it will take time,” he added.
The US is the second largest market for Illy coffee. One fifth of the company’s revenue comes from that country.
The company was founded in Trieste in 1933 and controlled by the Ili family, which in 2021 sold 20% of its shares at American Rhone Capital.
Source: NAFTEMPORIKI.gr