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https://cremacoffeegarage.com.au/blog/italian-icon-bialetti-company-facing-bankruptcy
Bialetti, Maker of the Iconic Aluminium Moka Express Stovetop, Confronts an Uncertain Future Ahead as the Company Navigates Massive Debts & Possible Bankruptcy
For many coffee lovers, the Bialetti Moka Express Pot, also known casually as a Stovetop, has become an iconic piece of coffee equipment.
Patented by Alfonso Bialetti in 1933, the Moka Express is considered to encapsulate Italian coffee drinking culture and has become a fixture in homes across the globe. It is even displayed at the London Science Museum and the Museum of Modern Art in New York.
The Bialetti stovetop is an eight-sided aluminium coffee pot that forces pressurised boiling water up through a layer of ground coffee to produce an espresso-like coffee brew. The aluminium is the traditional model, but the company also makes a variety of stainless steel models for inductions stovetop, and all models come in a wide range of sizes to suit any household.
Inside a moka pot by how it works magazine
However, with the rise of competitive coffee pod machines and a difficult Italian economy, the Bialetti group has been struggling against potential bankruptcy and announced on 26th October 2018 they would be taking measures to address a £60 million ($108 million) debt and "doubts over its continuity".
As reported in The Age, experts have weighed in on Bialetti’s circumstances citing the rise in capsule and coffee pod machines as a critical turning point for coffee culture in Italy. These machines have gained significant popularity since superstar George Clooney became a Nespresso spokesperson. According to Nielsen analysts, the ground coffee market in Italy lost 6% in volume while capsule sales grew 23% from 2016 to 2017.
"When it comes to large-scale distribution, sales of the capsules are growing rapidly, while sales of ground coffee for the moka are declining, even here in Italy where 70% of families have a moka in their home," Francesca Arcuri, of Filicori Zecchini, one of Italy's oldest coffee companies, was quoted.
Renato Bialetti and the Bialetti mascot based on Alfonso Bialetti
The financial downfall of Bialetti is especially bittersweet considering the Bialetti family’s struggles to build the company up. After WWI, Alfonso Bialetti spent the better part of a decade producing the Moka Express prototype and finally launched the product in 1933. He managed to sell 10,000 units per year from a stall he would set up at markets or in the street, but struggled to market his product properly. It wasn’t until his son, Renato, took over the company that the product took off.
After returning from a German POW camp, Renato found himself at the helm of the Bialetti company and made marketing his mission. He ceased production of all products except the Moka Express pot, focusing all his energy and resources on promoting that one product. He splashed the Moka Express across billboards, radio campaigns, newspapers and magazines. He even went so far as to erect this giant Moka Express sculpture at the 1956 Milan trade show, Fiera di Milano. Renato’s efforts paid off: the company has sold over 300,000,000 since 1950!
Milan Fair 1956
The Bialetti group is currently exploring avenues to keep the company in production.