After purchasing the popular French coffee brand Carte Noire, Lavazza is of the assertion that its revenues may rise to $1.9 billion this year.
If that figure does end up on Lavazza’s end-of-year balance sheets, it would represent an increase of nearly twenty percent when compared to 2015’s figures.
The deal will see Lavazza become the leading coffee supply in one of Europe’s biggest – and most lucrative – markets.
Carte Noire’s portfolio covers both fresh and instant coffee, capsules, and a wide range of branded apparel.
According to the information that is out in the open at this point, the agreement values Carte Noire at around $800 million.
It is believed that Lavazza has secured bank financing to fund half of the deal, with the other half coming directly from Lavazza’s own cash reserves.
The move represents yet another step in the famous Italian brands long-term strategy that willsee them compete with the likes of Jacobs Douwe Egberts and Nestle.
“Our aim is to reach a dimension that allows us to play a key role in the sector,” said Lavazza’s CEO Antonio Bravalle.
Bravalle was speaking at high profile event in Paris and during his talk, he also noted that the group was planning to increase their annual revenues to $2.2 billion within the next few years.
In order to achieve this ambitious target, the company is focusing their efforts on increase their revenue from foreign sales.
Bravalle hinted Lavazza’s modus operandi going forwards would be to target “local jewels.”
However, the Italian company is set to stay away from expanding into bricks and mortar businesses. As you may remember, the group pulled out of the much-troubled (but admittedly potentially lucrative) Indian-based chain Barista back in 2014.
Mondelez International put Carte Noire on the market early last year in order to allay fears by European regulators ahead of their successful merger with D.E Master Blenders.