Illy announces agreement with JAB for the production of aluminium capsules

With the aim of entering the coffee capsule market, Illy has secured a licensing agreement with Jacobs Douwe Egberts, the world’s second largest coffee roasting group controlled by JAB Holding.

Under the terms of the agreement, the Dutch firm will produce aluminium capsules compatible with Nespresso machines for the Italian brand and distribute them worldwide.

The capsules will go on sale in Italy, France, Germany and Spain in the first half of 2019, followed by other countries.

The partnership, which is purely commercial in nature and will not involve an exchange of stock, aims to challenge the market dominance of Nestlé, which in early 2018 invested $7.15 billion in selling Starbucks coffee outside the eponymous coffeeshops.

Coca-Cola also entered the coffee market in August this year when it acquired the UK coffeehouse chain Costa, while Lavazza recently acquired the coffee business of Mars Inc.