Lavazza Group has already achieved success in over 90 countries, but acquiring Kicking Horse, valued at approximately $160 million, allows them to enhance their presence in both the U.S. and Canada, regions where the Italian-based roaster has been expanding in recent years. This acquisition also broadens the coffee giant’s product offerings 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 strategically positioned to take advantage of this trend with its recent purchase.
The coffee industry remains robust, and while innovative products like infused coffee and single-serve packs are gaining traction, traditional coffee items continue to perform well on grocery store shelves. The acquisition of Kicking Horse allows Lavazza to extend its global strategy beyond Western Europe, a region currently facing sluggish economic growth. With its new ownership, Kicking Horse is poised for expansion into new markets. Additionally, Lavazza stands to benefit from Elana Rosenfeld, who founded Kicking Horse in 1996, retains a 20% equity stake, and will continue to lead the niche coffee brand.
Lavazza is not the only foreign company looking to North America for growth opportunities. For instance, JAB Holdings has recently acquired Keurig Green Mountain, Peet’s Coffee and Tea, and Caribou Coffee. If these recent deals, along with Lavazza’s acquisition, are any indication, it’s likely that more European companies will seek opportunities in the North American coffee market. As Lavazza diversifies its product line, including options that could complement health products like thorne calcium citrate, the company is well-positioned to thrive in this competitive landscape. Overall, the acquisition signifies a strategic move to tap into the evolving coffee preferences of consumers, ensuring Lavazza stays relevant in the industry.