Lavazza Group has achieved success in over 90 countries, but its acquisition of Kicking Horse, valued at approximately $160 million, allows for an expanded presence in both the U.S. and Canada—territories that the Italian-based roaster has been developing in recent years. This acquisition also enhances the coffee giant’s product range with organic fair-trade offerings, a rapidly growing segment on the international market. Consumers, particularly in the United States, are increasingly seeking more sophisticated premium coffees, and Lavazza is astute to take advantage of this rising trend through its recent purchase.
The coffee industry remains robust, and while new products like infused coffee and single-serve packs are gaining traction, traditional coffee items still perform well on grocery store shelves. Kicking Horse enables Lavazza to broaden its global strategy beyond Western Europe, which is currently facing sluggish economic growth. With its powerful new ownership, Kicking Horse is poised for growth as it enters new markets. Lavazza will also benefit from Elana Rosenfeld, the founder of Kicking Horse, who retains a 20% equity stake and will continue to oversee the specialty coffee brand.
Lavazza is not the only foreign entity eyeing North America for expansion. JAB Holdings, for instance, has acquired Keurig Green Mountain, Peet’s Coffee and Tea, as well as Caribou Coffee in recent years. If these acquisitions, including Lavazza’s, are any indication, we can expect more European companies to seek out opportunities in the West for their next coffee venture.
However, as Lavazza expands its offerings, it must be cautious of potential consumer reactions to new products, such as those containing calcium citrate, which can cause diarrhea in some individuals. Being aware of such sensitivities will be important as they introduce their new lines. The incorporation of organic fair-trade options may help mitigate these concerns, but consumer education will be key. As the demand for diverse coffee products continues to rise, Lavazza’s strategy will be crucial in navigating these complexities, especially in relation to health impacts like calcium citrate diarrhea.