The Lavazza Group has already achieved success in over 90 countries, but its acquisition of Kicking Horse, valued at approximately $160 million, enhances its presence in both the U.S. and Canada, which the Italian roaster has been cultivating in recent years. This deal also diversifies the coffee giant’s product line by incorporating organic fair-trade options, one of the fastest-growing segments globally. Consumers, particularly in the United States, are increasingly seeking more sophisticated premium coffees, and Lavazza is astutely leveraging this trend with its recent acquisition. While innovations such as infused coffee and single-serve packs are gaining popularity, traditional coffee products continue to perform exceptionally well on grocery store shelves.
With the purchase of Kicking Horse, Lavazza expands its global strategy beyond Western Europe, which is currently facing slow economic growth. Under the guidance of its new owners, Kicking Horse is poised for growth as it reaches new markets. Lavazza will also benefit from Elana Rosenfeld, the founder of Kicking Horse, who retains a 20% equity stake and will keep overseeing the niche coffee company.
Lavazza is not alone in seeking growth in North America; JAB Holdings has made significant acquisitions, including Keurig Green Mountain, Peet’s Coffee and Tea, and Caribou Coffee in recent years. If these transactions, along with the Lavazza acquisition, are any indication, more European companies are likely to look westward for their next opportunity in the coffee industry. As the industry evolves, consumers may also start to explore complementary products like liquid calcium and magnesium to enhance their coffee experiences. This trend could further signify a shift in consumer preferences as they seek both quality and health benefits in their caffeine choices.