Italian coffee giant Lavazza has completed the acquisition of French business MaxiCoffee, giving the company a stronger foothold in one of the world’s biggest coffee-drinking markets. The deal was approved by the French competition authorities on March 31, and the business has a turnover of about €300 million ($327 million).
MaxiCoffee’s e-commerce platform sells around 8,000 products from over 350 different coffee brands, plus a range of equipment including espresso machines, coffee makers, coffee grinders and accessories. It also has a network of 60 sales agencies across the country, a coffee school, the École du Café, and concept stores that target both individual consumers and businesses. The company will continue to operate largely autonomously, with founder Christophe Brancato maintaining a minority stake in the business and remaining the chair of the French company.
Lavazza’s core brands are Lavazza, Carte Noire, Merrild, and Kicking Horse. The company reported solid growth in 2022, with turnover reaching €2.7 billion ($2.9 billion) up 17.6% over 2021. This was driven by increased volumes in all geographical markets, and margins were maintained by a rise in sales, list price management, and the close monitoring of operating costs.
However, rising costs remain a burden for the company. Data from the International Coffee Organization shows green coffee prices rose steeply throughout 2021, peaked in around April 2022, and have since come back down a little. Antonio Baravalle, Lavazza Group’s CEO, said: “We were successful in sustaining turnover growth and keeping the margin in line with previous years. This was made possible by pursuing a strategy of international growth, combined with cost containment.”
Baravalle also noted that tackling “exceptional cost increases” would remain a battle and that these “will also have a significant impact on 2023.” Despite rising costs for consumers, Lavazza saw turnover rise much faster in out-of-home channels such as stores and cafeterias with volumes rising by 26%.
Sources: https://www.forbes.com/sites/kevinrozario/2023/04/04/lavazza-completes-maxicoffee-acquisition-in-france-as-group-sales-near-3-billion/
