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Domori to be sold to Italian coffee company Illy
July 24, 2006
1:00 pm
Martin Christy
London, United Kingdom
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Just received a press release that Domori will sell an 80% stake in the company to Illy Group S.p.A - an Italian coffee group. The founders of Domori will retain a 20% stake and be 'future guarantors' of the company.

Early indications suggest quality and direction will be maintained, I hope more details will follow soon.

Martin Christy
Editor
http://www.seventypercent.com

Martin Christy Editor www.seventypercent.com
July 24, 2006
1:25 pm
alex_h
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jeez! what's the world coming to?!
thanks for the news, martin.

July 24, 2006
2:07 pm
Eshra
Southgate, USA
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Pathetic.

And Domori called itself "Cacao Cult"? We call this 'selling out'.

Sad Day.

July 24, 2006
5:49 pm
alex_h
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sad sad sad

July 25, 2006
11:55 am
t.fadrus
Austria
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Oh my. I hope this isn't the end of a great chocolate manufacturer. I mean Illy is not that bad. As a coffee company they have a very high standard of quality.

Any news on the cause of this deal?

And by the way how is Scharffenberger doing under the Hershey's banner? Anyone noticed a decline in quality?

regards,
Thomas

www.schokologie.com << visit my blog
July 25, 2006
1:26 pm
alex_h
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i was thinking along the same lines, thomas. maybe illy is not that bad a choice after all. the reasons for the deal would be interesting though.
and as far as scharffenberger goes: the quality of their bars has not let up. i recently tried their jamaique a l'ancienne and kumasi sambirano and both were up to their usual standard at least.

July 25, 2006
5:48 pm
ellie
london, United Kingdom
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And at least Illy isn't the bad big wolf in the chocolate industry ;)

July 26, 2006
12:18 am
Sebastian
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I wouldn't anticipate huge changes. If anything, this is a move that'll result in the company saving more money (combined ocean freight - their coffee is coming from teh same place as their cacao), allowing them to put more back into improving their systems. not sure i understand the logic of retaining 20% ownership, however, as that's exactly 31% less than you need to assert control..

July 26, 2006
8:54 am
alex_h
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that 20% does sound a wee bit small...

July 26, 2006
1:51 pm
Eshra
Southgate, USA
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It sounds small because it is. The 20% retention of ownership is merely tokenism. Domori would have sold 100% of the company were that the most profitable venture.

However, there is a sorta of pretense associated with retaining 20% of Domori stock: that being that they will, as they put it, be "future guarantors" of the company.

If they believe 20% is going to give them that kind of leverage in the boardroom, they have never studied these sorts of business ventures.

The simply fact of the matter is, is that Mack Domori sold out and was bsin' all along. It was said that he wanted to elevate chocolate to the esteem of coffee and wine. These were obvious lies, as he was more than willing to sell the company to a COFFEE firm...company...anomalous entity...whatever!

Doesn't even matter. I will never purchase Domori in my life, again.

I am totally irate.

July 26, 2006
2:09 pm
alex_h
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if what you say is the case, eshra, and it's all just about money makin', then i am just as p*ssed off as you are.
but might it not possibly be that domori is in such a bad spot financially that they'd agree to such a move because their hands are tied?

July 27, 2006
9:16 am
alex_h
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i find this interesting: for gianluca franzoni the name domori represents cacao and coffee.

July 27, 2006
11:53 am
t.fadrus
Austria
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quote:


Originally posted by alex_h

i find this interesting: for gianluca franzoni the name domori represents cacao and coffee.


Is this from the domori website? If so, since when is it there?
Maybe this is some kind of plot that has been planned right from the founding of domori. Imagine it was all just a fake brand to lure people to Illy.
Or maybe im just a bit low on bloodsugar. I'm gonna grab an Amedei bar now. See Gianluca there are others, we don't need you! We are not dependant on your delightful, scrumptious, heavenly chocolate bars.

www.schokologie.com << visit my blog
July 27, 2006
2:36 pm
Sebastian
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I'm not sure I follow why anyone would/wouldn't continue to purchase a given product based on legal ownership, unless there's a philosophical reason (ie if they were to employ child labor, etc). As long as the product quality doesn't suffer. I say kudos to the family for creating a successful business. Change always causes some consternation with people, as there's an element of the unknown. The purchasing company certainly recognizes that, and given the level of quality inherent in the brand, I'd be very surprised if they don't do everything in their power to maintain - or increase - that during the transition.

July 28, 2006
7:29 am
Hans-Peter Rot
USA
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As Sebastian noted, I wouldn't be surprised to see a continuous high level of quality from Domori for a couple reasons. First of all, who is to say that quality will diminish? I can clearly remember when the quality of a few of Domori's bars diminished drastically--so much so that I refused to purchase any of said bars for over a year until I was sure that the quality had been restored. If anything, perhaps, this business venture might allow quality to improve. Besides, I find it somewhat difficult to believe that Gianluca would allow his company to go into shambles by a larger conglomeration such as Illy. It's almost like a mother chimpanzee freely relinquishing her newborn son to an invading (homicidal) male.

July 28, 2006
9:27 am
alex_h
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@fadrus: it's on the websit and i've seen and heard it elsewhere. it's been around for a while now

July 28, 2006
11:27 am
t.fadrus
Austria
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I guess time will tell if this is a symbiotic or a parasitic union. But I'm really not pessimistic about the whole thing. Like I previously said Illy is a quality company and Domori can benefit from the resources of an international scale distributor. I for sure won't stop buying and enjoying Domori any time soon.
I'd still like to know more about the circumstances that led to this acquisition. News about it are slowly spreading on the web, so maybe some more information will arise soon.

www.schokologie.com << visit my blog
July 28, 2006
11:40 am
ellie
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Don't understand, how consuming Domori chocolate ( real, not fake, btw) will lure you buy Illy coffee? Where is the plot? I can not imagine neither Illy chcolate replacing Domori... And fast developing fine chocolate production could benefit the additional capital from quite established coffee industry.
Do you see coffee producers as rivals,coming into fine chocolate brand with intention to spoil it? Industrial espionage?

July 28, 2006
12:19 pm
t.fadrus
Austria
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quote:


Originally posted by ellie

Don't understand, how consuming Domori chocolate ( real, not fake, btw) will lure you buy Illy coffee? Where is the plot? I can not imagine neither Illy chcolate replacing Domori... And fast developing fine chocolate production could benefit the additional capital from quite established coffee industry.
Do you see coffee producers as rivals,coming into fine chocolate brand with intention to spoil it? Industrial espionage?


I'm sorry I think I went a little bit overboard with my conspiracy theory. I think I was just short of my daily dose of chocolate and if that happens I'm getting a little bit ironic. Please don't take this whole plot thing too seriously.
All those thoughts were highly speculative and don't really represent my own believes, but were mere thought-provocing impulses.
Nevertheless I still think that this acquisition was mostly induced by financial considerations and not because Domori wanted to profit from Illy's know-how and distribution expertise.

www.schokologie.com << visit my blog
July 28, 2006
1:28 pm
Domenico
Budapest, Hungary
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Time will tell...Fortunately here we can only wait and see. I admit I like Domori chocolate. However the sourcing of Domori and the mess around various production sites and brands have been a mistery to me from the beginning of the firm. This July in Italy I have seen Kamba bars sold in hypermarkets. It was also known that they had to make a lot of money in a shorter time compared to the industrial standards due to the financial background of the firm. So I was never sure about the real origins I was eating but it definitely tasted good.

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