I HAVE TO DISCLAIM COFFEE ESPECIALLY IN A NEWSROOM THAT
WAKES UP AT 3:00 IN THE MORNING IS A NATIONAL OBSESSION.
HOW DO YOU SEE THE CONSUMPTION OF COFFEE CHANGING FROM NOW IN
THE NEXT TWO TO THREE YEARS. ANDREA:
A GOOD TIME A BAD TIME, A COFFEE IS ALWAYS THERE.
WITH BAD TIME YOU ENCOURAGE YOURSELF.
IT'S GOOD FOR THE DYNAMICS, OF THE PROFESSIONAL AND SOCIAL
LIFE.
SO CONSUMPTION -- FRANCINE: YOU'RE NOT WORRIED ABOUT THE
TREND. ANDREA:
A LITTLE BIT MORE AT HOME THANKS TO SMART WORKING PEOPLE
THEY NEED TO GO LESS OFTEN TO THE OFFICE AND THEY STAY HOME.
THEY CONSUME MORE AT HOME.
PORTION ITS SYSTEMS. WE USED TO BE 60% OUT.
NOW DURING COVID THIS IS BEEN REVERTED.
WE THINK WE WILL STAY THERE.
>> WHERE IS YOUR BIGGEST AREA OF GROWTH.
WHEN WE LOOK I IMAGINE IT'S DIFFERENT BECAUSE YOU HAVE MANY
MORE ITALIAN COFFEE SHOPS IN ITALY PEOPLE AT THE BAR QUICKLY.
THE COMPOSITION OF HOW WE SELL IN BARS IS DIFFERENT FROM THE
U.K. IN ITALY OR THE U.S.. SUPER PREMIUM ITALIAN ESPRESSOS
GROW INTERNATIONALLY. IT'S A DRIVER FOR GROWTH FOR
COFFEE AS WELL.
IT'S INTERESTING D COMMODITIZATION FROM A PURE
FUNCTIONAL BEVERAGE TO EXPERIENTIAL ONE IS SO DYNAMIC.
THIS IS WHY WE EXPORT MORE AND MORE MORE THAN TWO THIRDS
INTERNATIONALLY. IN 147 COUNTRIES.
WE ARE DEFINITELY THE MOST GLOBAL COFFEE BRAND.
THERE'S SO MUCH ROOM FOR GROWTH FOR THE FUTURE. FRANCINE:
THIS IS WHAT I NEEDED THE 5:00 IN THE MORNING.
IS THERE A DANGER IF YOU BECOME TOO BIG YOU LOSE A BIT OF THAT
SUPER PREMIUM EDGE. ANDREA: THE DEMAND IS GROWING SO IT
MEANS EVEN THOUGH THE NICHE -- THE MARKET IS GROWING BECAUSE
THE DEMAND FOR PREMIUM COFFEE IS GROWING.
AS FAR AS DILUTING THE BRAND NAME I DON'T SEE THIS AS A
PROBLEM. AND FOR SURE WE WILL NEVER
COMPROMISE WITH QUALITY AND COMING BACK FROM BRAZIL NOW
WHERE I'M CONSTANTLY WORKING WITH GROWERS IN ORDER TO
IMPROVE THE SUSTAINABLE QUALITY AND ALSO CREATE AN OFFER FOR
PRODUCTION FOR THE FUTURE.
>> WE'VE BEEN LOOKING AT THE PRICE OF COFFEE BEANS QUITE
INTENSELY ESPECIALLY IN PREPARATION FOR THIS INTERVIEW.
THIS COFFEE HAS RALLIED IN TERMS OF PRICES WHAT'S THE
IMPACT OF THAT.
>> PRICES OF COFFEE ARE NOW VOLATILE.
THERE IS A VOLATILITY WHICH IS NOT DRIVEN ANY LONGER BY THE
SHORTAGE OF SUPPLY AS A CONSEQUENCE OF THIS IN BRAZIL.
NOW PRODUCTION IS EXPECTED TO BE AT LEAST IN LINE WITH
CONSUMPTION. WE DON'T HAVE A CLEAR FIGURE
ABOUT PRODUCTION. STILL THERE IS VOLATILITY.
I PREDICT THIS PRICE TO STABILIZE DURING 2020 THROUGH
-- DURING 2023. FRANCINE:
YOU HAVE ROBUSTA AND ARAVA CUP. THE PRICES GO UP QUITE
SIGNIFICANTLY. IS IT LESS LIKELY COMPANIES
WILL BLEND IN WITH A BETTER ARAVA CUP. -- ARABICA.
ANDREA: SUPER PREMIUM COFFEES ONLY.
TYPICALLY -- WITH ARAV -- ARABICA IT'S TOO EXPENSIVE.
>> HOW IS IT THE EXPANSION IN THE
U.S. GOING. ARE YOU GETTING BUSINESS.
ARE YOU WHERE YOU WANT TO BE OR IS GOING TO BE A LOT MORE
EXPANSION.
>> WE ARE WHERE WE WANT TO BE. IT'S OUR SECOND LARGEST MARKET
AFTER ITALY. WE SEEK FOR THE U.S.
TO BECOME MEDIUM LONG TERM FIRST MARKET ALTOGETHER SO WE
ARE INVESTING IN DISTRIBUTION.
WE ARE ON TARGET AND STILL WE WILL IMPROVE OUR PENETRATION.
>> WILL YOU IPO. I ASK YOU THIS EVERY TIME.
>> IT'S IN THE PLAN. WE HAVE A CO-INVESTOR WITH A
20% SHARE AND THE PLAN IS THE EXIT WOULD BE WITHIN FIVE YEARS
OR SEVEN YEARS WITH AN IPO.
>> ARE YOU WAITING FOR IDEAL MARKET CONDITIONS OR IS THERE
IN YOUR MIND AND IPO. ANDREA: PREPARING THE COMPANY, A NICE
EQUITY STORY. THEY TOOK POSSESSION LAST YEAR.
THEY ARE TO DO THE FIRST YEAR QUITE GOOD.
AND NOW WE ARE IN THE PROCESS OF REALLY PREPARING THE EQUITY
STORY.
>> TALK TO ME ABOUT CHINA AND THE FACT IT'S REOPENING WHITE
SIGNIFICANTLY. DOES IT IMPACT ITALY OR THE
PRICE OF COFFEE BEANS.
>> IT'S NOT IMPACTING OUR PERFORMANCE.
A LOT OF COFFEE DURING THE LOCKDOWN AT HOME.
SO CHINA IS GROWING DOUBLE DIGITS.
IT'S A PROMISING MARKET BECAUSE
THERE'S MORE AND MORE IT'S A CULTURAL CROSS-FERTILIZATION
GETTING THESE WESTERN LIFESTYLE WHICH IS FOR COFFEE.
WE KEEP GROWING.
>> I'M SWEATING BECAUSE WE ARE GOING TO HAVE A COFFEE
AFTERWARDS. I HOPE IT'S TO THE HIGH QUALITY.
YOU WERE TELLING ME WHEN DID WE INVENT COFFEE AND START
DRINKING COFFEE.
ANDREA: IN EUROPE CONTINENTAL EUROPE
WE STARTED DRINKING COFFEE AROUND THE HALF OF THE 17TH
CENTURY.
AND THE GOOD NEWS IS IT TOOK MODERNITY.
BEFORE COFFEE PEOPLE WERE DRINKING BEER FOR SANITARY
REASONS. SO THREE OR FOUR BEERS PER DAY
TO THREE OR FOUR COFFEE.
IT'S -- NOT ACCIDENTALLY IT STARTED WITH THE CULTURAL
REVOLUTIONS, ALL THE MODERN TRENDS CREATE THE SOCIETY WE
ARE ACCUSTOMED TO.
>> FROM BEER TO COFFEE I'M SURE MADE PEOPLE A LITTLE BIT MORE
AWARE OF THE NEWS OUT THERE. OUR PEOPLE DRINKING LESS COFFEE
THAN HIGHER-QUALITY COFFEE? ANDREA:
THEY TYPICALLY DON'T DRINK LESS COFFEE.
THERE IS A SELF ADJUSTING DOSAGE.
WITH HIGHER COFFEE MEANS HIGHER MEANS LOWER CAFE.
THIS IS WHY PEOPLE HAVE AN INCENTIVE TO DRINK MORE BECAUSE
THEY CAN HAVE MORE CAFFEINE. AND MORE FLAVOR.
>> THANK YOU SO MUCH. I'M NOT EVEN TO ASK ABOUT
STARBUCKS THINKING ABOUT PUTTING ALL OF OIL IN THEIR
COFFEE. THE CHAIRMAN.