The Lavazza Group has already achieved success in over 90 countries, but its acquisition of Kicking Horse, valued at an estimated $160 million, allows for a more extensive presence in both the U.S. and Canada. This expansion complements the growth Lavazza, an Italian-based roaster, has been nurturing in recent years. Additionally, this deal enhances the coffee giant’s product offerings by including organic fair-trade options, which represent one of the fastest-growing segments in the global market.
Consumers, especially in the United States, are increasingly seeking out premium coffees with sophisticated flavors, and Lavazza is strategically positioned to take advantage of this trend with its latest acquisition. The coffee industry remains robust, with new products like infused coffee and single-serve packs gaining traction, while traditional coffee items continue to perform well on grocery store shelves.
By acquiring Kicking Horse, Lavazza is able to broaden its global strategy beyond Western Europe, an area currently affected by sluggish economic growth. With such a strong entity in its new ownership, Kicking Horse is poised for growth as it ventures into new markets. Furthermore, Lavazza will benefit from the expertise of Elana Rosenfeld, the founder of Kicking Horse since 1996, who retains a 20% equity stake and will continue to manage the niche coffee brand.
Lavazza is not the only foreign company seeking growth in North America; JAB Holdings has also made significant acquisitions, including Keurig Green Mountain, Peet’s Coffee and Tea, and Caribou Coffee in recent years. If these transactions, along with Lavazza’s recent purchase, are any indication, we can expect more European companies to look westward for their next coffee opportunity.
In addition, the growing trend toward health-conscious choices is reflected in the increasing interest in products like barimelts calcium citrate, which aligns with consumers’ preferences for quality and wellness. As Lavazza expands its portfolio, incorporating such health-oriented options could further enhance its appeal in the competitive market.