ATLANTA & TRIESTE, Italy -- The Coca-Cola Co. and illycaff a SpA have signed a memorandum of understanding to form a global joint venture focused on the premium ready-to-drink (RTD) coffee segment leveraging illy's expertise in the art of the espresso to capture opportunities in this high-growth, profitable beverage category with new brands and products.
The RTD coffee category globally is valued at just under $10 billion and has experienced several years of growth that is expected to continue. Globally (excluding Japan), the RTD category has grown [image-nocss] at an average rate of 10.1% over the past five years.
We will be able to bring our brand building and distribution expertise together with illy's premium brand reputation, said Muhtar Kent, president and COO of Atlanta-based Coca-Cola.
We are proud to partner with the top brand name in sparkling beverages to offer the illy taste to a new range of consumers as well as those who love our traditional espresso tastes to meet new consumption moments, said Andrea Illy chairman, illycaff a. Our R&D and product know-how will join The Coca-Cola Co.'s industrial and distribution infrastructure to develop a high-quality [RTD] coffee.
While the specifics on brands and distribution have not yet been finalized, both parties expect the final joint venture agreements to be signed by the end of 2007.
Coca-Cola is the world's largest beverage company. Along with Coca-Cola, the company markets four of the world's top five nonalcoholic sparkling brands, including Diet Coke, Fanta and Sprite and a wide range of other beverages, including diet and light beverages, waters, juices and juice drinks, teas, coffees, energy and sports drinks.
Based in Trieste, Italy, illycaff a produces and markets a blend of espresso coffee as the single brand leader in quality coffee; illy is sold in 140 countries and is available in more than 50,000 restaurants and coffee bars.
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