Illy, the Italian coffee brand, is moving in on Starbucks by "joining forces with independent coffee shops," reports Julie Jargon in the Wall Street Journal (11/3/09). Illy calls its program Artisti del Gusto (Artist of Taste) and brought it to America last year, having launched the concept in Italy three years ago. Illy's idea is simply to "get its name in front of more customers without having to buy or rent its own shops."

In exchange for signing a three-year exclusive with Illy, the shops receive "Italian espresso machines, coffee cups, artwork, drink recipes and intensive training, after which the cafe becomes a certified Illy purveyor." Sean Lupton-Smith, owner of Cafe Nineteen in Atlanta, says the program is working well for him. Where he previously sold a no-name cup of coffee for $1.60, he now sells Illy-branded cups for $3.00. He says his coffee sales have tripled.

Sean feels the Illy imprimatur helps him "offer a consistent experience ... and be strong enough to stand up to the Starbucks around the corner." Hanna Suleiman of Caffe Greco in San Francisco meanwhile reports her "sales have increased by 10 percent and profits by 3 percent since the shop signed up with Illy a year ago." So far, Illy has inked 28 U.S. cafes, "plans to add 100 more in the next three years" and expand into Mexico and Canada. Starbucks currently has more than 11,000 U.S. stores.