Nov 19, 2015, 9:40 am
Last edit by: WineCountryUA
United Airlines to Bring Customers Coffee's 'Gold Standard' with illy Premium Blend
CHICAGO, Nov. 19, 2015 /PRNewswire/ -- United Airlines and illycaffe are creating a new alliance that will offer the Italian company's delicious premium blend to delight customers on board and in United Club locations worldwide.
Beginning next month, United will offer illy's signature scuro dark roast and the coffee company's espresso in United Club locations at the airline's mainland U.S. hubs. Other lounge locations will offer illy in 2016, with the scuro dark roast coming to flights worldwide next summer.
Not Just a Cup of Coffee
Chosen after extensive testing with United customers and employees – including in-flight taste tests – illy reflects the airline's global network as well as United's commitment to creating an elevated, distinctive premium experience for its customers.
Based in Trieste, Italy, with more than 80 years of history in the coffee industry, illy's distinct flavor comes from a unique blend of the top one percent of Arabica beans, purchased directly from the best growers in Brazil, Central America, India and Africa.
Noted for its strong commitment to sustainability, illy's internationally certified supply chain includes farmers who earn above-market prices in exchange for meeting quality standards – enabling the company to offer world-class blends.
A recent Wine Spectator magazine article praised the coffee, saying it "has become a gold standard in high-end restaurants and five-star hotels around the world."
"Our collaboration with illy is helping to make the world feel a bit smaller and making flying that much more special, simply by way of a perfect cup of coffee," said Jimmy Samartzis, United's vice president of food services and United Clubs. "By serving the world's most well-known premium coffee in our clubs and on board, we are communicating an experience to our customers and our employees with the quality and care that comes with every cup."
"It's truly an honor for illy to be selected as the worldwide coffee partner for United Airlines. The process and final decision to choose illy demonstrates United's deep commitment to providing its customers the highest quality products and experiences," said Andrea Illy, Chairman and CEO of illycaffe s.p.a. "Our new relationship with United Airlines is also a testament to our passion for the best and recognition that the illy brand is the world's reference for coffee culture and excellence."
Illy will be complimentary on every flight and when offered in United's lounges.
CHICAGO, Nov. 19, 2015 /PRNewswire/ -- United Airlines and illycaffe are creating a new alliance that will offer the Italian company's delicious premium blend to delight customers on board and in United Club locations worldwide.
Beginning next month, United will offer illy's signature scuro dark roast and the coffee company's espresso in United Club locations at the airline's mainland U.S. hubs. Other lounge locations will offer illy in 2016, with the scuro dark roast coming to flights worldwide next summer.
Not Just a Cup of Coffee
Chosen after extensive testing with United customers and employees – including in-flight taste tests – illy reflects the airline's global network as well as United's commitment to creating an elevated, distinctive premium experience for its customers.
Based in Trieste, Italy, with more than 80 years of history in the coffee industry, illy's distinct flavor comes from a unique blend of the top one percent of Arabica beans, purchased directly from the best growers in Brazil, Central America, India and Africa.
Noted for its strong commitment to sustainability, illy's internationally certified supply chain includes farmers who earn above-market prices in exchange for meeting quality standards – enabling the company to offer world-class blends.
A recent Wine Spectator magazine article praised the coffee, saying it "has become a gold standard in high-end restaurants and five-star hotels around the world."
"Our collaboration with illy is helping to make the world feel a bit smaller and making flying that much more special, simply by way of a perfect cup of coffee," said Jimmy Samartzis, United's vice president of food services and United Clubs. "By serving the world's most well-known premium coffee in our clubs and on board, we are communicating an experience to our customers and our employees with the quality and care that comes with every cup."
"It's truly an honor for illy to be selected as the worldwide coffee partner for United Airlines. The process and final decision to choose illy demonstrates United's deep commitment to providing its customers the highest quality products and experiences," said Andrea Illy, Chairman and CEO of illycaffe s.p.a. "Our new relationship with United Airlines is also a testament to our passion for the best and recognition that the illy brand is the world's reference for coffee culture and excellence."
Illy will be complimentary on every flight and when offered in United's lounges.
UA serving illy’s world-class coffee
Nov 19, 2015, 2:34 pm
#61
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Considering that many companies require CEO signoff for any risk/spend over $5MM, it is still a lot of money, and discretionary money to boot. Not saying it isn't something they should do. But it's still spend that is hard to quantify adding "back" to the bottom line. Personally, there is something to these little quick wins - it does add back to the bottom line - but not in a quantifiable manner.
And that's assuming $12/lb, and we all know UA isn't going to be paying anywhere near that. Probably closer to $3/lb.
That's $4.2mm run-rate.
So let's assume a 25% uptick in price from 'poo to Illy. (Totally pulling numbers out of my posterior here.). That would be a $1.4m incremental spend - probably not something that would show up on a CEO's radar of a $39B company.
Possibly a CFO, but only because it'd be a multi-year commit.
Nov 19, 2015, 2:36 pm
#62
Join Date: Jun 2005
Posts: 4,645
Considering that many companies require CEO signoff for any risk/spend over $5MM, it is still a lot of money, and discretionary money to boot. Not saying it isn't something they should do. But it's still spend that is hard to quantify adding "back" to the bottom line. Personally, there is something to these little quick wins - it does add back to the bottom line - but not in a quantifiable manner.
This is yet another piece of evidence that discredits the Smisek strategy and shows UA is seeking to become something other than the worst airline in the country.
Nov 19, 2015, 3:09 pm
#64
Join Date: Mar 2015
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Considering that many companies require CEO signoff for any risk/spend over $5MM, it is still a lot of money, and discretionary money to boot. Not saying it isn't something they should do. But it's still spend that is hard to quantify adding "back" to the bottom line. Personally, there is something to these little quick wins^ - it does add back to the bottom line - but not in a quantifiable manner.
Exactly! We know coffee is not a deciding factor, but it is part of an overall strategy that can begin to repair the damage the previous penny-pinching regime implemented by focusing solely on the income statement in-lieu of the big picture.
I hope (and believe) Oscar will continue these quick wins while focusing on a larger, multi-year strategy to right the ship.
Nov 19, 2015, 3:24 pm
#67
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Illy coffee is great, that's very promising. Although we'll have to see what gets implemented. Anybody remember what Starbucks ended up being like on board? Better than freshpoo, but barely.
Nov 19, 2015, 3:34 pm
#68
Join Date: Mar 2012
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Reason behind summer 2016 date?
Per: Biz Journals
(http://www.bizjournals.com/chicago/n...caffe-for.html)
"Sakowitz said FreshBrew's three-year contract with United Airlines ends in March of 2016."
Per: Biz Journals
(http://www.bizjournals.com/chicago/n...caffe-for.html)
"Sakowitz said FreshBrew's three-year contract with United Airlines ends in March of 2016."
Nov 19, 2015, 4:16 pm
#69
Join Date: Jul 2005
Posts: 2,324
LOL
For FreshBrew, of course, which was a finalist in the three-way competition in recent weeks to get United's coffee contract, the decision is a setback. Reached this morning, Robert Sakowitz, a longtime consultant to FreshBrew and former Continental Airlines Board of Directors member, expressed disappointment at the decision.
But Sakowitz today also insisted that United Airlines' (NYSE: UAL) decision to go with FreshBrew over Starbucks several years ago was not due to any insider connections he may have had as a former Continental Board member, but rather the extensive taste tasting that went on at the time involving both FreshBrew and Starbucks products.
Sakowitz also said today United's new deal with Illy is likely to be a major test of the capabilities of the Italian coffee company, which has not previously had a deal of this magnitude with a carrier the size of United. "It will be interesting to see how Illy handles the demands of this new opportunity," noted Sakowitz.
http://www.bizjournals.com/chicago/n...caffe-for.html
Originally Posted by Chicago Business Journal
For FreshBrew, of course, which was a finalist in the three-way competition in recent weeks to get United's coffee contract, the decision is a setback. Reached this morning, Robert Sakowitz, a longtime consultant to FreshBrew and former Continental Airlines Board of Directors member, expressed disappointment at the decision.
But Sakowitz today also insisted that United Airlines' (NYSE: UAL) decision to go with FreshBrew over Starbucks several years ago was not due to any insider connections he may have had as a former Continental Board member, but rather the extensive taste tasting that went on at the time involving both FreshBrew and Starbucks products.
Sakowitz also said today United's new deal with Illy is likely to be a major test of the capabilities of the Italian coffee company, which has not previously had a deal of this magnitude with a carrier the size of United. "It will be interesting to see how Illy handles the demands of this new opportunity," noted Sakowitz.
Nov 19, 2015, 6:03 pm
#71
Join Date: Feb 2002
Location: NYC: UA 1K, DL Platinum, AAirpass, Avis PC
Posts: 4,599
I wonder if it's a production ramp. Or UA had to take inventory until March which isn't depleted until the summer.
Quote:
Originally Posted by wt_fresca
Reason behind summer 2016 date?
Per: Biz Journals
(http://www.bizjournals.com/chicago/n...caffe-for.html)
"Sakowitz said FreshBrew's three-year contract with United Airlines ends in March of 2016."
But if contract ends in March and the Illy arrives in summer, what will UA brew on board in April and May?
Originally Posted by wt_fresca
Reason behind summer 2016 date?
Per: Biz Journals
(http://www.bizjournals.com/chicago/n...caffe-for.html)
"Sakowitz said FreshBrew's three-year contract with United Airlines ends in March of 2016."
But if contract ends in March and the Illy arrives in summer, what will UA brew on board in April and May?
Nov 19, 2015, 6:04 pm
#72
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Location: NYC: UA 1K, DL Platinum, AAirpass, Avis PC
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Nov 19, 2015, 6:14 pm
#73
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This is great news -- the coffee both on board and in the lounges has been barely drinkable. While illy isn't my favorite, it's substantially better than PooBrew. I was afraid another no-name brand would be chosen based on "extensive testing".
Nov 19, 2015, 6:25 pm
#74
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LOL
But Sakowitz today also insisted that United Airlines' (NYSE: UAL) decision to go with FreshBrew over Starbucks several years ago was not due to any insider connections he may have had as a former Continental Board member, but rather the extensive taste tasting that went on at the time involving both FreshBrew and Starbucks products.
Nov 19, 2015, 6:34 pm
#75
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I'm not a coffee drinker (and, being a leisure traveler, I have no need to be amped up on the plane), but I feel like this has to be a move in the right direction. Glad to see Oscar not only mention the poor coffee but deliver on a plan to change direction to fix it.
Hope the reviews of it in the UCs are positive! Heck, I might even try a cup out just to see if it's worth the fuss.
Hope the reviews of it in the UCs are positive! Heck, I might even try a cup out just to see if it's worth the fuss.