Lavazza, Spa Luigi in Hot Drinks

Scope of the report

Scope

Strategic Evaluation

Key company facts

Corporate structure

Financial performance

Lavazza has global presence, but Western Europe is its core

Italy is the most significant market, but no longer as central

Standard ground losing share to instant and pods

A number of pod machines are sold for different occasions

SWOT: Lavazza SpA, Luigi

Competitive positioning

Lavazza is now one of the world’s largest hot drinks companies

Lavazza brands tend to be mid-range to premium

Pods tend to follow the same general pattern

Marketing aims at creating a refined image

Carte Noire represents a massive investment for the brand

Weakness in pods is a major threat in years ahead

Jolie makes a quiet debut on the A Modo Mio line

iTierra! and the growing importance of sustainability

Conclusions: Challenges in the years ahead

Geographic breakdown

A growing market presence in the European Economic Area

Italy remains core of Lavazza’s operations

France is now the most important market outside Italy

Purchasing Merrild moved Lavazza to number one in Denmark

Germany: Struggling for share in Europe’s largest market

Reasserting control in Australia

Shift in focus in the US

Geographic Breakdown

Russian growth is aligned with Lavazza’s category presence

Merrild makes Lavazza into a major player in the Baltics

Israeli pods and Iranian ground power Mideast growth

Challenges by geography

Future Outlook

Growing espresso machine sales may present an opportunity

The Middle East is an option for non-European growth

The future of Lavazza

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