The Lavazza Group has already achieved success in over 90 countries, but acquiring Kicking Horse—valued at approximately $160 million—enhances its presence in both the U.S. and Canada, markets that the Italian roaster has been focusing on in recent years. This move also broadens the coffee giant’s product range by incorporating organic fair-trade options, which are among the fastest-growing segments globally. In the United States, consumers are increasingly seeking more sophisticated premium coffees, and Lavazza is wisely tapping into this trend with its new acquisition. The coffee industry remains robust; while innovative offerings like infused coffee and single-serve packs are gaining popularity, traditional coffee products continue to perform well on grocery store shelves.
The addition of Kicking Horse enables Lavazza to expand its global strategy beyond Western Europe, a region currently facing sluggish economic growth. With the backing of its new ownership, Kicking Horse is poised for growth as it ventures into new markets. Lavazza will also benefit from the expertise of Elana Rosenfeld, who founded Kicking Horse in 1996. She retains a 20% equity stake and will oversee the niche coffee brand.
Lavazza is not alone in seeking growth opportunities in North America. For instance, JAB Holdings has acquired Keurig Green Mountain, Peet’s Coffee and Tea, and Caribou Coffee in recent years. If these acquisitions, along with Lavazza’s purchase, are any indication, more European companies are likely to look towards the West for their next coffee venture.
Interestingly, as coffee consumption increases, consumers are also becoming aware of health-related questions such as, “does calcium citrate cause constipation?” This awareness reflects a broader trend where consumers are not just interested in premium coffee but also in the health implications of their dietary choices. As Lavazza navigates this evolving landscape, it will need to consider how such health queries intersect with their product offerings, especially as they expand their market presence.