Why Lavazza Is Buying the French Coffee Retailer MaxiCoffee

Italian coffee group Lavazza has made a full acquisition offer for MaxiCoffee, a French online coffee retailer, to strengthen its position in France and in e-commerce. MaxiCoffee carries more than 350 brands and over 8,000 products, with 60 offline sales points. Financial terms of the deal were not disclosed, and MaxiCoffee will keep operating independently.

The move extends Lavazza's international expansion, following earlier additions such as Carte Noire and Kicking Horse Coffee. Founded in Turin in 1895, Lavazza sells in more than 80 countries. In 2020 the group formed a joint venture with Yum China to run Lavazza coffee shops in China, part of its plan to grow in that market.

Italian century-old coffee brand Lavazza recently made a full acquisition offer to French online coffee retailer MaxiCoffee, aiming to strengthen its market position in France and in the e-commerce sector. As France's number one online sales platform for coffee beans and equipment, MaxiCoffee carries more than 350 brands, over 8,000 products and 60 offline sales points. This acquisition is a continuation of Lavazza's international expansion strategy, after the group previously brought brands such as Carte Noire and Kicking Horse Coffee into its fold. After the acquisition is completed, MaxiCoffee will remain independently operated, with its capital held jointly by its founder and private equity groups. This article will sort through the details of the transaction, the backgrounds of both parties and Lavazza's global acquisition map, and also look at its development goals in the Chinese market.

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According to news from a US investment research institution, Lavazza recently announced externally that it has submitted an acquisition proposal to French coffee seller MaxiCoffee and offered a rather attractive acquisition contract, although the specific financial terms and transaction details have not been disclosed. It is reported that this acquisition aims to further consolidate Lavazza's foundation in the French market while enhancing its competitive position in France and in the e-commerce sector.

Lavazza is a century-old coffee brand originating from Italy. It was founded in Turin in 1895 by Luigi Lavazza and has now passed more than 120 years. This brand, spanning centuries, carries a rich heritage of Italian tradition. Its products are sold in more than 80 countries and regions worldwide, occupying 45% of the global market. At Lavazza, customers can not only taste rich, full-bodied Italian coffee with an intense aroma, but also choose Italian light meals, Italian gelato and fruit juices.

In 2020, the Lavazza Group joined hands with Yum China to establish a joint venture to operate Lavazza coffee shops in the Chinese market. Not long afterward, Lavazza's first coffee flagship store outside Italy was established in Shanghai. The store uses blue, white and gold as its main color palette, supplemented by Italian design elements such as marble, brass and glass mirrors, giving the overall style a simplicity that still retains a sense of luxury and sophistication.

It is understood that when walking into a LAVAZZA store, customers feel not only that they are drinking coffee, but more like savoring an Italian-style art space. Relying on high-quality coffee, creative food and an immersive Italian cultural experience, Lavazza coffee shops quickly won recognition from the industry and consumers. After more than two years in the Chinese market, it had already opened 78 stores and set the goal of opening 1,000 stores in China by 2025.

MaxiCoffee was founded in 2007 and currently has about 1,500 employees. It is a French coffee brand centered on online channels and the number one player in France's online retail of coffee beans and equipment. The brand serves customers through an e-commerce platform that brings together more than 350 brands and over 8,000 products, and it has 60 sales points across France. Its equipment covers manual and fully automatic Italian coffee machines, pour-over kettles, moka pots and more, while its coffee beans include Italian blends, specialty pour-over beans, flavored coffee beans and green beans that need to be roasted yourself.

The Lavazza Group's proposal to acquire all of MaxiCoffee's share capital is precisely intended to use this e-commerce platform to provide customers with better service and strengthen its influence in the e-commerce field. MaxiCoffee said on its official website: Choosing Lavazza is because it has more than 120 years of experience and is also an innovative brand in the coffee industry. Globally, Lavazza is synonymous with the true Italian espresso concept and is currently the market leader in product quality.

Lavazza CEO Antonio Baravalle pointed out in a statement: "The acquisition of MaxiCoffee is part of our international development strategy. It will retain its positioning as a multi-brand e-commerce platform and remain independently operated. Our involvement will not change this successful business model in any way; on the contrary, it will drive its growth by activating our international development plans."

After the transaction is completed, MaxiCoffee's capital will be held jointly by founder Christophe Brancato, Italian private equity group 21 Invest and other minority shareholders.

In fact, as early as 2015, LAVAZZA embarked on the path of acquisitions, once bringing French coffee brand Carte Noire under its wing for 800 million euros. In recent years, the group has continued to increase its bets, successively acquiring the coffee business of Mars Drinks, France's Carte Noire and ESP, Denmark's Merrild, Canada's Kicking Horse Coffee and Australia's Blue Pod Coffee, among others, and expanding rapidly around the world.

However, whether it is deepening its market presence or seeking new profit growth points, on the fiercely competitive coffee track, Lavazza's battle in the second half still faces many challenges.

Image source: Internet

The above content is compiled by CoffeeHunters, a coffee news website.