Illycaffe Faces Price Hikes Amidst Tariff Uncertainty

Illycaffe is assessing price hikes due to potential U.S. tariffs. CEO Cristina Scocchia acknowledged future local production in the U.S. as tariffs could impact pricing. Despite increased bean costs, Illy sustained its 2024 prices. A U.S. plant and production expansion in Italy are under review.

In response to potential tariffs from the U.S. government, Italian premium coffee producer Illycaffe may need to raise its prices, as stated by its CEO, Cristina Scocchia. She emphasized that the company is examining how these duties could influence final prices.

Scocchia also indicated that Illycaffe is considering, in the long term, establishing a plant in the United States if the company's products get entangled in tariff plans targeting countries viewed as disadvantaging American workers and goods. The company managed to maintain steady prices last year despite a substantial increase in arabica bean prices but has instituted a 4% global price hike in 2025.

The American market is crucial for Illy, being its second-largest market, contributing significantly to its revenues. Although a stock market listing is not presently deemed timely due to volatile economic conditions, Illy continues to explore expanding production, with current plans for expanding production capacity in Italy.

(With inputs from agencies.)