Lavazza Group's purchase of Kicking Horse Coffee seen as integral to strategy

Italian coffee manufacturer The Lavazza Group says that its recent purchase of Kicking Horse Coffee underlines the company's desire to continue with its...

Stuart Hodge
|Jun 7|magazine4 min read

Italian coffee manufacturer The Lavazza Group says that its recent purchase of Kicking Horse Coffee underlines the company's desire to continue with its globalization and premium positioning strategy.

Kicking Horse is a successful organic and fair-trade player in the Canadian market and has shown remarkable growth in both Canada and the US in recent years and the company was valued at $215 million (CAN) prior to being sold.

The purchase was facilitated by private-equity fund Swander Pace Capital, with an 80% equity stake going to the Lavazza Group and the remaining 20% retained by the company’s founder Elana Rosenfeld.

Antonio Baravalle, chief executive of the Lavazza Group and future Kicking Horse Coffee chairman, told Food & Drink Business Europe: “Kicking Horse Coffee represents one of the ‘local jewels’ the Lavazza Group continues to seek as part of its globalization and premium positioning strategy.

“Today, organic fair-trade coffee is one of the fastest-growing trends at the international level, and in North America in particular. Kicking Horse Coffee leads this segment with a brand that is perfectly complementary to the Lavazza portfolio. 

"In recent years, the company has constantly grown at a double-digit rate and, thanks to this acquisition, its growth and development prospects both in and outside of Canada will increase significantly.”

With this acquisition and the Carte Noire and Merrild deals back in 2015, Lavazza is continuing along the path of international growth and diversification, consolidating its competitive position among the global sector leaders.

The deal ties in with Lavazza’s overall strategy in North America and the company is now expected to increase the “brand equity” of Kicking Horse Coffee while sharing key respective competencies and values.