Tag: ESG

illycaffè Reports 12% Revenue Growth in 2025 Amid Record Coffee Prices

Posted on by Qahwa World
Trieste, Italy — Qahwa World

Italian coffee group illycaffè S.p.A. reported a solid performance for 2025, with group revenue rising 12% to €700 million (approximately US$817.2 million), supported by higher volumes across key markets including Italy, the United States, and Europe.

The company said it achieved its fourth consecutive year of strong organic growth despite a challenging environment marked by record-high green coffee prices and geopolitical uncertainty.

Financial Performance

  • Revenue: €700 million (+12%)
  • EBITDA: €90 million
  • Net profit: €20 million
  • Net financial position: €197 million

illycaffè attributed the financial position to higher raw material costs and continued strategic investments, including acquisitions completed during the year.

Commodity Pressure Remains High

The company highlighted significant pressure from coffee bean prices in 2025. Green coffee averaged 368 cents per pound, around three times the long-term historical average and more than 50% higher than in 2024.

illycaffè said it partially offset inflation through pricing strategies and cost-efficiency measures.

CEO Commentary

CEO Cristina Scocchia said the company maintained strong momentum despite external challenges:

“2025 was the fourth consecutive period of strong organic growth for the company, despite a particularly challenging external environment and the sharp rise in raw material prices.”

She added that the company continued strengthening its position across the value chain through targeted investments and integration.

Regional Performance

  • Italy: +14%
  • Europe: +23%
  • United States: +20% (at constant exchange rates)

The United States remained a strategic priority market for the company.

Strategic Acquisitions

During 2025, illycaffè expanded its operations through two key acquisitions:

  • Full acquisition of Swiss distributor Thalwil AG to strengthen its direct presence in European markets
  • 80% stake acquisition in coffee machine manufacturer Capitani, focused on portioned coffee systems for the home segment

The company said these investments strengthen its integration across the value chain, from production to consumer-facing equipment.

Outlook

illycaffè said it expects 2026 to remain challenging due to geopolitical tensions and economic uncertainty. However, it plans to continue supporting growth through international expansion, marketing investment, and sustainable innovation.

Julius Meinl and Partners Launch Climate-Smart Coffee Initiative in Western Honduras

Posted on by Qahwa World

Vienna – Qahwa World

In a landmark sustainability partnership, Julius Meinl, The J.M. Smucker Co., and Tchibo, in collaboration with the Hanns R. Neumann Stiftung (HRNS), have announced the launch of a four-year project to establish a Climate-Smart Coffee Region (CSCR) in Western Honduras. The initiative aims to strengthen smallholder livelihoods, restore ecosystems, and enhance climate resilience across key coffee-producing areas.

The 2025–2029 project will support 4,000 smallholder families, improve 6,000 hectares of farmland, and engage 20 farmer organizations in the departments of Ocotepeque, Copán, and Lempira. Implementation will be led by HRNS Honduras, with the initiative remaining open for additional partners interested in contributing to this collaborative model.

Transforming Coffee Landscapes

Building on 15 years of field expertise through the initiative for coffee&climate (c&c), of which all three companies are members, CSCR Honduras will deploy proven tools for climate adaptation. These include soil and water conservation, agroforestry systems, erosion control, microclimate monitoring, and household-level innovations such as fuel-efficient stoves and water-saving technologies. The project focuses on areas surrounding the Celaque, Erapuca, Las Minas, and Volcán Pacayita protected zones, turning them into biodiversity-friendly and climate-smart coffee landscapes.

According to Theresa Ruperti, HRNS Program Manager, “Western Honduras is ecologically rich but increasingly vulnerable to climate change. Irregular rainfall, droughts, and rising temperatures have reduced yields by up to 30%. The CSCR project links productivity, resilience, and conservation — positioning the region as a model for sustainable coffee in Central America.”

Carina Needham, Global Sustainability Director at Julius Meinl 1862 GmbH, added: “This marks the first landscape-level initiative under our Generations Programme. Its uniqueness lies in collaboration — working with fellow roasters and local partners to create lasting impact where coffee, communities, and nature can thrive together.”

Strengthening Local Governance

The initiative’s strength lies in its territorial governance model, coordinated through inter-municipal platforms such as Higuito and MAPANCE. These structures will bring together municipalities, civil society, and local actors to pursue shared climate objectives. The Honduran Coffee Institute (IHCAFE) will provide technical training, research, and monitoring support, while a regional Community of Practice (CoP) will facilitate learning among 25 local institutions.

As a fifth-generation family business, Julius Meinl reaffirms its long-standing sustainability commitment, focusing on three core pillars — Origin, Planet, and People — to ensure a positive impact across its value chain.