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 expanding into in recent years. This acquisition also diversifies the coffee giant’s product line to include organic fair-trade options, one of the fastest-growing segments globally. Consumers, particularly in the United States, are increasingly seeking out more sophisticated premium coffees, and Lavazza is astutely poised to leverage this trend with its new acquisition.
As the coffee industry remains robust, innovative products like infused coffee and single-serve packs are gaining popularity, yet traditional coffee items continue to perform well on grocery shelves. The acquisition of Kicking Horse enables Lavazza to broaden its global strategy beyond Western Europe, which has been experiencing sluggish economic growth. With powerful new ownership, Kicking Horse is expected to flourish as it ventures into new markets. Additionally, Lavazza will benefit from the expertise of Elana Rosenfeld, who founded Kicking Horse in 1996, retains a 20% equity stake, and will oversee the specialty coffee brand.
Lavazza is not alone in targeting North America for growth. JAB Holdings has also made significant moves, acquiring Keurig Green Mountain, Peet’s Coffee and Tea, and Caribou Coffee in recent years. If these transactions, along with the Lavazza purchase, signal a trend, we can anticipate more European companies looking westward for their next coffee opportunity.
In the context of health and wellness, it’s interesting to note that as consumers pursue premium coffee options, they are also increasingly aware of nutritional supplements like calcium citrate malate, vitamin D3, and folic acid, which can enhance their overall well-being. This growing awareness may influence coffee brands to explore incorporating health-focused ingredients alongside their premium offerings.