Illy Coffee Chairman Discusses Management Philosophy: Ensuring Quality Through Sustainability

Italy's Illy coffee is world-renowned. Chairman Andrea Illy shared his management philosophy of "ensuring quality through sustainability," emphasizing that the goal is for coffee farmers in 20 countries to adopt 100% "regenerative agriculture" to mitigate the crisis where climate change could make half of the current land unsuitable for coffee cultivation. Illy coffee is a well-known Italian family business, founded in 1933 by Francesco Illy in Trieste, northern Italy. It is now steered by the third generation of the family, Andrea Illy, who held a roundtable discussion with foreign media reporters, including those from the Central News Agency, last night in Rome. ● Founder's two patents spark a revolution in the coffee world; family passion passed down. Founder Francesco Illy was born in Hungary, started his business in Italy, and held dual Hungarian-Italian citizenship. Illy recalled that his grandfather loved coffee from a young age and sparked a revolution in the coffee world with two patented inventions. The first was the invention of a nitrogen-pressurized sealing system that preserves the aroma of freshly roasted coffee, a major breakthrough in coffee preservation. The second was the 1935 invention of the world's first espresso machine that used pressure instead of steam, which is considered the cornerstone of modern espresso machines. "My grandfather did not have formal scientific education; he relied on his own research and inventions. He deeply felt the importance of knowledge and decided to send my father to study chemistry." Illy laughed, noting that in the World War II era, studying chemistry was considered somewhat like alchemy. "Looking back, my father's research projects were truly pioneering, almost like me sending my daughter to study astronomy for the sake of coffee research today." Illy himself majored in chemistry in college and obtained a master's degree in business management. Family members have different roles in the company based on their expertise, but all have inherited this passion for coffee. ● Unique blend of coffee; global production and sales. Illy coffee is blended from nine types of Arabica coffee beans. "Our strategy is to use blending to bring a richer sense of layering." Illy gave the example that, like an orchestra with many instruments, the flavor is more elegant and can harmonize the differences in origin caused by natural conditions. Illy coffee raw materials come from 20 countries, including as many as 50 different ecosystems, with major importing countries including Brazil, Ethiopia, Guatemala, Costa Rica, Peru, and Colombia. Illy adopts a direct-purchase model at the origin for coffee sources. "We look for excellent coffee farmers all over the world, just like digging for gold mines." Illy emphasized that the company and coffee farmers are mutually beneficial partners. "There is no such thing as a coffee recipe that belongs only to Illy; it is created together by the community." When asked if Illy is like a "sun that never sets in the coffee world," Illy said the company has benefited greatly from globalization, with operations in more than 140 countries, and currently, export markets account for two-thirds of the business. However, he also admitted that it is no longer the case that "the world is flat" as it was in the past 30 years, where owning an international brand could reach the whole world. "Today, the scale of globalization has shrunk, and we all know those troublesome geopolitical issues." ● Trendy specialty coffee; Italian traditional coffee industry pays attention. Traditionally, hot espresso is the mainstream in Italy, but in recent years, "specialty coffee" from brands like Starbucks has gradually become popular. Illy responded to the Central News Agency's question by saying that until a few decades ago, coffee was still a "functional product"; people drank coffee to refresh and replenish caffeine, not to taste it. But today, coffee has become an "experiential product," especially attracting young people to taste and explore origins, similar to the development process of wine. Illy believes that from the origin, these "modified specialty coffees" are undoubtedly inspired by Italy, as evidenced by the fact that American brands still use Italian terms, including Espresso, Cappuccino, and Latte. "Specialty coffee drinks first became popular in the United States, and then Asia joined in." Illy analyzed that Asia was not traditionally a coffee-consuming country; at first, American and Italian coffee brands were popular, but now Asia is also beginning to incorporate coffee culture through local brands. "We are in the midst of a global wave of specialty coffee drinks. Many companies are also exploring this trend in Italy to attract young audiences and international travelers and transform cafes into gathering places." Illy said, "In any case, this is a theme that the Italian coffee industry must pay attention to, so as not to be surpassed." At the roundtable, Illy also brought machines for making "Cremino Cafè" and "cold brew coffee." Baristas and customers told the Central News Agency that compared to traditional hot coffee, such cold coffee drinks are indeed becoming more popular in the hot summer. ● Climate change hits coffee cultivation hard; promoting regenerative agriculture. Another major challenge for the coffee industry is climate change. Illy stated bluntly, "10 years ago, experts predicted that climate change would cause 50% of the world's coffee cultivation land to disappear, and today this prediction is gradually becoming a reality." Illy realized that action must be taken to protect the quality of the coffee source. In addition to founding the "Coffee University" in 1999, it is now promoting the adoption of "Regenerative Agriculture" for coffee cultivation in response to extreme weather. Regenerative agriculture is a sustainable farming method that focuses on restoring ecosystems, promoting biodiversity, and soil health. Illy stated that agricultural activities account for about 30% of global greenhouse gas emissions, and regenerative agriculture helps mitigate climate change. "Practical methods include improving soil, selecting disease-resistant varieties, and if that is not enough, developing new production areas, but development also faces major geopolitical issues." In addition, adopting regenerative agriculture requires significant investment. Illy explained that farmers in coffee-growing areas often live below the poverty line and are in urgent need of international power. Therefore, the G7 previously passed the public-private "Global Coffee Sustainability and Resilience Fund." Illy's goal is to achieve "100% regenerative agriculture." The Italian academic and industrial circles established the "Regenerative Society Foundation" in 2020, and Illy also serves as co-chair. Illy also presents the spirit of sustainability on the packaging; its coffee metal cans are made of recycled materials and can be recycled infinitely. Illy laughed, "I sometimes fantasize that Ferrari mudguards are made from our recycled cans. Theoretically, this is not impossible, right?"