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Illy Uses Stealth Shops To Challenge Starbucks On U.S. Turf

IllyCaffè SpA, the high-end coffee maker based in Trieste, Italy, is going after the Starbucks crowd in the U.S. by signing contracts with cafes that agree to serve Illy exclusively and allow it to monitor quality control, Julie Jargon reports.

The program is called "Artisti del Gusto," or Artists of Taste. At present, 28 shops operate under the certification in the U.S. and Illy plans to add 100 more in the next three years, as well as to expand into Canada and Mexico.

The shops get Italian espresso machines, coffee cups, artwork, drink recipes, intensive training and instant cachet. Illy get an agreement that the shops will sell its brand exclusively for at least three years.

Read the whole story at Wall Street Journal »

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