Mars sells coffee business to Lavazza | Progresiv
Mars Inc has announced the sale of its coffee business to Italian group Lavazza, in a move that consolidates the latter’s global presence. No financial details of the deal were disclosed, although some reports pegged the sale at around 650 million dollars (including debt). 
The deal covers Mars Drinks, which includes the Flavia and Klinx office coffee service (OCS) brands and vending machine segments. It also covers a broad portfolio of coffee and other hot beverages commercialised under both proprietary brands (e.g. Alterra) as well as through licensed brands. The business generated sales of around 350 million dollars in 2017, and operates in North America, Canada, Japan, and Europe, with production plants in the UK and North America.
Mars Inc noted: “We are confident this decision will better enable long-term success for the Drinks business with Lavazza – a company that shares our values and has a dedicated focus on beverages – and will allow the business and its Associates to continue to thrive.”
Antonio Baravalle, CEO of Lavazza, noted: “This acquisition strengthens Lavazza’s position in the OCS and vending segments, which offer considerable opportunities for growth and development. This acquisition fits perfectly within our international expansion strategy, the objective of strengthening key markets, as well as the pursuit of having an even closer relationship with end consumers.”
Lavazza said it plans to enhance the acquired businesses, with a particular emphasis on Away-from-Home. (www.kamcity.com)
