Source: http://economictimes.indiatimes.com/news/news-by-industry/cons-products/food/lavazza-to-invest-20-mn-euros-in-its-indian-facility-at-ap/articleshow/7379896.cms

HYDERABAD: Lavazza, world’s largest espresso coffee maker will invest 20 million Euros in its Indian manufacturing facility at Andhra Pradesh and expects it to become the second largest market for the company after Italy over next five years, a top official said here today.

Lavazza Group Vice President Giuseppe Lavazza said the operations in the existing facility in Chennai will be moved to the new plant being set up at Sri City multi-product Special Economic Zone (SEZ) in Nellore district.

“We will invest 20 million Euros in this region. Initially, the new facility will cater to the Indian sub-continent but will gradually export to all Asia-Pacific regions. Our target is to evolve the Indian market as our second largest market (after Italy) for us in the next five years. The current revenues from this region are 30 million Euros,” Lavazza told reporters.

According to the Italy-based company, at present, France is the second largest market for the company with 100 million Euros revenues after Italy which accounts for more than 600 million Euros.

Currently, the global turnover of Lavazza is at 1.13 billion Euros with 60 per cent from Italy, while the remaining 40 per cent is from outside Italy.

Giuseppe said the company intends to maximize revenues from abroad.

“We have a 50 per cent market share in Italy, a market which comprises 30 per cent of Espresso consumption. But going further, we would like to see our revenues 50:50 ration from Italy and international,” he explained.

The proposed facility, which will become functional by May 2012, will have a production capacity of 1,600 tons per annum and will employ over 150 people. In Italy alone, the company sells about 70,000 tons per annum, Lavazza said.

In 2008, the company acquired Barista brand of coffee outlets and Fresh & Honey stores in India. It has over 200 outlets across the country under Barista brand, besides an installed base of 5,000 away from home coffee vending machines.

Source: http://www.google.com/hostednews/ap/article/ALeqM5jRcbrc-73wErHoT-5be3R-2hB1fwD9HHHR201

By EMILY FREDRIX (AP) – Aug 11, 2010

NEW YORK — For an extra jolt to its finances, Green Mountain Coffee Rosters Inc. is selling a 7 percent stake to Lavazza, Italy’s best-selling espresso brand, for $250 million.

Together, the companies plan to develop new single-serving espresso machines and espresso capsules that will complement Green Mountain’s popular Keurig coffee makers, which brew single cups of tea or coffee.

The deal is expected to close in September and advances both company’s strategies, they said late Tuesday.

Green Mountain wants to expand its successful single-serve K-Cup lines, and Lavazza has been buying companies in India, Brazil and Argentina to fuel its growth. This is Lavazza’s biggest foreign acquisition.

Lavazza, based in Turin, has agreed to buy newly issued shares at 10 cents par value common stock at a price equal to the 60-day volume weighted average price at closing, less 7.5 percent. The deal includes the possibility of buying additional shares up to 15 percent of Green Mountain.

The deal must be approved by U.S. antitrust regulators.

The companies’ new single-serve products aren’t expected to reach the market until at least 2013.

The Keurig system’s success has been fueling growth for Green Mountain, which is based in Waterbury, Vt.

As shoppers cut spending at cafes during the recession, the systems presented a less-expensive alternative. Rival Starbucks Corp. jumped into the market in September with its Via instant coffee line.

Last month Keurig said its third-quarter revenue rose 64 percent to $311.5 million, thanks largely to rising sales of Keurig machines and accessories, which accounted for about half of the company’s revenue. It expects shipments for K-Cup packs to rise as much as 76 percent this fiscal year.

Green Mountain’s $300 million acquisition of Diedrich Coffee Inc. — one of four roasters licensed to produce K-Cups — closed in May.

The Lavazza investment will let Green Mountain make more purchases, Janney Capital Markets analyst Mitchell Pinheiro told clients in a note Wednesday. It also brings Lavazza’s brand value and expertise to Keurig products and could help with launching Keurig in Europe, he said.

He reiterated his “Buy” rating on the stock and $40 price target.

Shares of Green Mountain fell 47 cents, or 1.5 percent, to close at $30.99 Wednesday.

Source:http://news.bbc.co.uk/2/hi/uk_news/8522663.stm

Lavazza became a global brand under Emilio Lavazza’s leadership

Emilio Lavazza, the man who made his family name synonymous with coffee, has died at the age of 78.

Mr Lavazza presided over the international expansion at the Italian coffee giant, where he spent close to 40 years at the helm.

He also expanded the firm in coffee-obsessed Italy, where Lavazza now has almost half of the retail market.

Founded by Emilio Lavazza’a grandfather, it is also the world’s sixth biggest coffee roaster.

A private personality

“He had two sides. He was not a public person – [people from Turin] are quite private people. But it was Mr Emilio that took this company to international markets,” a Lavazza spokesperson told the BBC.

A very private man, Mr Lavazza gave only one interview during his time at the helm – to an Italian newspaper some 15 years ago – the spokesperson said.

Mr Lavazza’s grandfather Luigi founded the family business in 1895 and when his father Luigi died in 1971, Emilio was appointed chief executive. He then became president of the company in 1979 – a position he held until being made honorary president in 2008.

He was the main architect behind his company’s television-led marketing campaign, and expanded the Turin-based company’s operations into foreign markets.

The company became synonymous with the Italian espresso under Mr Lavazza.

He commenced the international expansion in earnest soon after becoming president, opening a French office in 1982.

Now Lavazza holds 48% of the Italian retail coffee market and has operations in countries as diverse as Brazil and India.

It has forecast sales of more than 1.1bn euros (£1bn) in 2009.