Milan

Coffee giants Illy and Kimbo unite to challenge Nespresso

Battle raging over rapidly growing market for at-home coffee

Coffee giants Illy and Kimbo unite to challenge Nespresso

Milan, July 10 - The battle of the coffee capsules has begun. Kimbo and Illy have announced an alliance to challenge the dominance of the encapsulated-coffee market by Nespresso and Lavazza. The stakes are high: coffee is popular in Italy and demand for machines that produce it quickly and easily is rising. Market growth in coffee capsules is averaging 22% per year, says Simone Cavallo, general manager of Kimbo, which wants to win "an important share" of that capsule market. The idea is to have manufacturer Indesit produce a coffee maker that can accept capsules from either Illy or Kimbo.

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