The Italian coffeemaker, Lavazza, targets 2 billion euro in revenues after Carte Noire deal, as officials from FT reported. The combination of acquisitions and organic growth will boost sales to this record amount by 2020. The goal has been confirmed by the chief executive officer Antonio Baravalle of the Italian company. “Lavazza is the biggest among the small, but is the smallest among the big,” said Baravalle, who’s been ceo since 2011. “We’ve spent more than 1 billion euro in the last 12 months,” he added, referring to the acquisition of the Danish coffee roaster, Merrild, from D.E. Master Blenders last year, investments in its Australian distribution network, and then the 700 million euro deal to buy Carte Noire. “It is time to consolidate. We are a ‘one step at a time’ company.”
LAVAZZA IN FIGURES – Moreover, the Turin-based company, whose 2015 sales rose 8% to 1.4 billion euro, probably won’t make another purchase, at least until the end of the year, he said. The purchase of the Carte Noire deal in France makes it the second largest market for Lavazza, after it’s home country, and is expected to generate about a fifth of the company’s revenue this year, Baravalle said.
THE AIM IS TO BE INDEPENDENT – Lavazza, founded in 1895, boosted its U.S. revenue by 20% last year, where its clients include Keurig Green Mountain Inc’s K-Cup system. These days, and for the moment, closely held Lavazza isn’t considering going public. “We have plenty to do before we even consider an IPO, and plenty of cash to manage further growth for at least four years,” Baravalle said. “Our aim is to remain fully independent.”