Riccardo Illy: ready for the future. From successful company to benefit corporation.

Excellence in mass-markets, change in line with tradition, globalization without forgetting local communities, success and ethical behavior. These are not oxymorons anymore: rather, the reconciliation of opposites, of outdated polarities. And perhaps this is the best way to describe the entrepreneurial vision that Riccardo Illy has shared with SDA Bocconi’s Full-Time MBA students during a Leadership Series event. Meeting the Chairman of Gruppo Illy and its sub-holding “Polo del gusto” has revealed the spirit of a successful entrepreneur, of course, but that of a politician as well (Illy has been Major of Trieste, President of the Friuli-Venezia Giulia Region and a Member of the Italian Parliament), who believes value creation relies on two key pillars: people have to be at the center of it, and it needs to have a non-monetary dimension too.

One word is the fil rouge of his presentation: sustainability. Sustainability has long been the strategic compass of Gruppo Illy and, since 2019, has been tracing the route also for “Polo del gusto”, the company in charge of non-coffee excellence brands such as Domori (chocolate products), Dammann Frères (tea), Mastrojanni (wine) and Agrimontana (jams and top-of-the-line confectionery products). What do these products have in common? “To us, four elements”: says Illy, “top quality, perceived even by non-connoisseurs (as confirmed by blind tests), the best raw materials, a different manufacturing process from the mainstream ones and a strong commitment to environmental and social sustainability.” Keeping them together is the outcome of a demanding journey, requiring dramatic change in approaching manufacturing, markets and organization.

The pandemic has been a stress test. It has accelerated ongoing changes and put many businesses to a tough test. “Large volumes of sales have moved online, and this has required to transform software systems, logistics and delivery, as well as packaging. Most of all, it has shown the importance of not focusing on a single sector, of being flexible and reacting quickly”. In one word, “it has taught us to be ready for change”.

This rings true for countries and governments as well, underlines the former politician: “Some countries have responded better and more efficiently than others. And we should look at these positive examples to improve our response to the pandemic”.

But what most clearly identifies Gruppo Illy is being a “benefit corporation”. “This kind of companies choose not to focus just on profits, and target social and environmental goals, as well as they care for their employees, suppliers and communities.” In Riccardo Illy’s words, sustainability can take multiple shapes when applied to the food sector. Think about green energy, tapping on renewable sources to reach carbon neutrality;  the spreading of electric mobility, thanks to increasingly efficient energy-storage systems;  artificial intelligence, automation and 3D printing, which will all reduce both our environmental footprint and production costs.

Everything is underpinned by the theme of globalization, which is unescapable for businesses dealing with what were once called “colonial products”. Illy is well aware of that: “I think globalization has increased inequality within advanced economies, but it has reduced it at a global level”. The economic globalization brought about by offshoring production where labor is cheaper is now offset by “social globalization”, improving social standards worldwide and pushing in turn blue collars to move where working conditions are best. This osmotic process will level out inequalities but also produce strong social unrest.

Illy looks onto the future with a clear but not pessimistic eye. His idea of leadership goes well beyond the sphere of his company and industry. He has helped create a half-billion industrial group that is also the only Italian brand in Ethisphere’s list of the 135 “most ethical companies in the world”. Two excellences that can now definitely go hand in hand.




SDA Bocconi School of Management