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Can someone please tell the JAB Holding Company<\/a> that the coffee industry isn\u2019t just a big game of Katamari Damacy, because they seem dead set on rolling through every coffee company until they\u2019ve created some sort of Frankenstein\u2019s monster coffee star. The Luxembourg-based investment firm has already swallowed up big time coffee brands like Peet\u2019s<\/a>, Stumptown<\/a>, Intelligentsia<\/a>, Caribou<\/a>, Keurig<\/a>, and Pret A Manger<\/a>, and now they have turned a lustful gaze at one of the largest independent coffee companies left: Illy<\/a>.<\/p>\n But there\u2019s another player, a cousin of Prince JAB to keep the Katametaphor going, with interest in the 85-year-old coffee company, none other than Nestl\u00e9<\/a>.<\/p>\n According to Bloomberg<\/a>, the Swiss company is looking to add to their coffee portfolio that includes homegrown brands Nescaf\u00e9<\/a> and Nespresso<\/a> as well as acquired entities like Blue Bottle<\/a> and the rights to market Starbucks<\/a> products. But neither Nestl\u00e9 or JAB are going to have an easy time adding to their collection as Illy Chairman Andrea Illy has stated that, \u201cEvery hypothesis of corporate agreements has been deemed inappropriate.\u201d For now.<\/p>\n Were a sale to occur (and let\u2019s be honest, it\u2019s probably going to happen, right?), financial experts believe the bidding would start at a cool $1.6 billion, roughly three times Illy\u2019s yearly revenue based on 2016 earnings.<\/p>\n Illy\u2019s market share in the coffee space has stagnated at around .2 percent since 2008, whereas Italian competitor Lavazza<\/a> has increased from 2 to 2.5 percent in that same time frame thanks to acquisitions like that of French brand Carte Noir<\/a>. Experts believe that this stagnation\u2014along with the acquisitions happening all around them\u2014will make it harder and harder for Illy carve out their own space in the coffee industry:<\/p>\n For now, Illy remains independent. One would think that $539 million in annual revenue across 140 countries would insulate a company from talks about not being able to compete in a global market and acquisitions. But that\u2019s just not the case in the current coffee marketplace, where power is quickly consolidating around only a handful of brands (with a few new players trying to gain ground<\/a>). It seems if you want to be a multi-national independent coffee company nowadays, you need to turn those M\u2019s to B\u2019s.<\/p>\n Zac Cadwalader<\/a>\u00a0is the news editor at Sprudge Media Network and a staff writer based in Dallas.\u00a0Read more Zac Cadwalader\u00a0on Sprudge<\/a>.<\/em><\/p>\n Top image via AWS Productions<\/a>.<\/em><\/p>\n Disclosure: Blue Bottle, Intelligentsia, and Stumptown are advertising partners of the Sprudge Media Network.<\/em><\/p>\n The post JAB and Nestl\u00e9 Are Looking To Acquire Illy<\/a> appeared first on Sprudge<\/a>.<\/p>\n Source: Coffee News<\/p>\n","protected":false},"excerpt":{"rendered":" Can someone please tell the JAB Holding Company that the coffee industry isn\u2019t just a big game of Katamari Damacy, because they seem dead set on rolling through every coffee…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[39,41],"tags":[63,45,65,47,61,49,59,67,55,57],"_links":{"self":[{"href":"https:\/\/thecurbkaimuki.com\/rest\/wp\/v2\/posts\/879"}],"collection":[{"href":"https:\/\/thecurbkaimuki.com\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thecurbkaimuki.com\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thecurbkaimuki.com\/rest\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thecurbkaimuki.com\/rest\/wp\/v2\/comments?post=879"}],"version-history":[{"count":2,"href":"https:\/\/thecurbkaimuki.com\/rest\/wp\/v2\/posts\/879\/revisions"}],"predecessor-version":[{"id":1008,"href":"https:\/\/thecurbkaimuki.com\/rest\/wp\/v2\/posts\/879\/revisions\/1008"}],"wp:attachment":[{"href":"https:\/\/thecurbkaimuki.com\/rest\/wp\/v2\/media?parent=879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thecurbkaimuki.com\/rest\/wp\/v2\/categories?post=879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thecurbkaimuki.com\/rest\/wp\/v2\/tags?post=879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n\u201cIt\u2019s tougher and tougher to compete without growing. As the market consolidates around you, staying the size of an Illy or even a Lavazza becomes more difficult,\u201d Jim Watson, a senior beverages analyst at Rabobank International, said. \u201cAs they all get bigger, and even as Lavazza gets bigger, it definitely puts Illy\u2019s place at risk.\u201d<\/div>\n<\/div>\n