Lavazza looking forward to India’s burgeoning love of coffee

When it comes to the blossoming Indian coffee sector, the famous Italian company Lavazza hasn’t been able to rely on brand presence and their heritage to compete in the dogged battle for retail store supremacy. This year, after financial problems and the prospect of an uphill battle against the likes of Starbucks and Café Coffee Day, the Barista chain was finally sold which marked the end of Lavazza’s presence in the world of coffee shops.

However, it is hoped that the presence of their now defunct brand will help them win another war in the country.

According to the latest available figures, per capita coffee consumption in India is, on average, around 90gm. Now, this may be light years away from Western nations with long-established coffee cultures – Finland, for example, has a per capita consumption rate of 11.8kg – but the coffee sector is predicted to hit a boom period in the next couple of years.

Silvio Zaccarero, Lavazza’s managing director for India, West Asia and Africa, believes this growth will reap great rewards for the already established names.  

“We are seeing an extremely good growth in branded coffee consumption in India,” said Zaccarero.

“[The country] is on the cusp of a coffee revolution.”

The Lavazza employee believes that the market is set to rise at an annual rate of 9% in the next couple of years – a staggering level.

Thanks to their association with Barista, Lavazza already has the infrastructure in place that puts them ahead of potential rivals.

“Today, we are the [preferred] brand in five-star hotels and among the top five preferred in corporate offices,” Zaccarero continued.

“As we consolidate our position, we will also increase our presence in the retail segment.”

The company invested an estimated $25m into a coffee plant in the Sri City industrial park – their only facility outside of Italy that is currently in operation – and it is believed that further investment is forthcoming as Lavazza look to solidify and expand on their position.