The Lavazza Group has already achieved success in over 90 countries, but its acquisition of Kicking Horse, valued at approximately $160 million, allows for a greater presence in both the U.S. and Canada, regions that the Italian-based coffee roaster has been expanding into in recent years. This move also enhances the coffee giant’s product offerings with organic fair-trade options, one of the fastest-growing segments globally. Consumers, particularly in the United States, are increasingly seeking sophisticated premium coffees, and Lavazza is astutely leveraging this trend with its recent acquisition. The coffee industry remains robust, and while new products such as infused coffee and single-serve packs are gaining traction, traditional coffee items continue to perform well on grocery store shelves.
By acquiring Kicking Horse, Lavazza can further its global strategy beyond Western Europe, which is currently facing slow economic growth. With the strength of its 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 manage the niche coffee brand.
Lavazza is not the only foreign company looking towards North America for expansion. For instance, JAB Holdings 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, it’s likely that more European firms will seek opportunities in the North American coffee market.
Furthermore, as coffee consumption trends shift, there is a growing interest in health-conscious options, such as those enriched with calcium citrate and histamine-blocking ingredients, which could appeal to a segment of consumers looking for added health benefits in their coffee. This trend may further influence product development in the coffee sector, highlighting a potential area for growth and innovation.