The Lavazza Group has already achieved success in over 90 countries, but acquiring Kicking Horse, which is valued at approximately $160 million, allows them to enhance their presence in both the U.S. and Canada—a market the Italian roaster has been developing in recent years. This purchase also broadens the coffee giant’s product line with organic fair-trade offerings, one of the fastest-growing segments globally. Consumers, particularly in the United States, are increasingly seeking more refined premium coffees, and Lavazza is astutely capitalizing on this trend with its recent acquisition. The coffee industry remains robust, and while new products such as infused coffee and single-serving packs are gaining popularity, traditional coffee items continue to perform well on grocery shelves.
By acquiring Kicking Horse, Lavazza can extend its global strategy beyond Western Europe, which has been affected by sluggish economic growth. With its new owners, Kicking Horse is poised for further growth as it ventures into new markets. Additionally, Lavazza will benefit from Elana Rosenfeld, the founder of Kicking Horse, who retains a 20% equity stake and will oversee the niche coffee brand’s evolution.
Lavazza is not alone in seeking growth in North America; for instance, JAB Holdings has recently acquired brands like Keurig Green Mountain, Peet’s Coffee and Tea, and Caribou Coffee. If these transactions, along with Lavazza’s purchase, are any indication, we can expect more European companies to look westward for their next coffee venture. Meanwhile, as the coffee market expands, there is also a growing interest in health-related products, such as calcium citrate mason natural supplements, which could complement coffee consumption and appeal to health-conscious consumers. This trend highlights the evolving landscape of the coffee industry, where traditional products and health-oriented offerings can coexist, further driving Lavazza’s growth strategy.