The Lavazza Group has already achieved success in over 90 countries, but the acquisition of Kicking Horse, valued at approximately $160 million, enables them to enhance their presence in both the U.S. and Canada—a market the Italfumarate-based roaster has been developing in recent years. This acquisition also broadens the coffee giant’s product offerings to include organic fair-trade options, which are among the fastest-growing segments globally. Consumers, particularly in the United States, are increasingly seeking out more sophisticated premium coffees, and Lavazza is astutely positioned to take advantage of this trend with their recent purchase.
The coffee industry remains robust, and while new innovations like infused coffee and single-serve packs are gaining popularity, traditional coffee products continue to perform well on grocery shelves. By bringing Kicking Horse into its portfolio, Lavazza is able to further its global strategy beyond Western Europe, which has been facing sluggish economic growth. With the strength of its new ownership, Kicking Horse is poised for expansion 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 continue to oversee the niche coffee brand.
Lavazza is not the only international company eyeing growth in North America. JAB Holdings, for instance, 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, we can expect more European companies to seek opportunities in the North American coffee market.
Additionally, as consumers increasingly focus on health and wellness, products like rugby calcium citrate with vitamin D3 are becoming more popular, further influencing the coffee market. This trend reflects a broader shift towards premium, health-conscious products, which Lavazza is well-positioned to embrace. By integrating Kicking Horse into their operations, Lavazza can leverage these market dynamics, ensuring they remain competitive in a rapidly evolving industry. With the growing demand for products like rugby calcium citrate with vitamin D3, Lavazza’s expansion into organic and fair-trade coffee aligns perfectly with consumer preferences, making this acquisition a strategic move for future growth.