Lavazza brews deal with Green Mountain

August 13, 2010

According to The Wall Street Journal, U.S.-based Green Mountain Coffee Roasters Inc. is selling a 7% stake to Luigi Lavazza, Italy’s best-selling espresso brand, for $250 million. Together, the companies plan to develop new single-serving espresso machines and espresso capsules that will complement Green Mountain’s popular Keurig coffee makers, which brew single cups of tea or coffee. The deal is expected to close in September and advances both company’s strategies, the companies said.

Green Mountain wants to expand its successful single-serve K-Cup lines, and Lavazza has been buying companies in India, Brazil, and Argentina to fuel its growth. This is Lavazza's biggest foreign acquisition. The deal includes the possibility of buying additional shares, to up to 15% of Green Mountain. The deal must be approved by U.S. antitrust regulators.

The companies’ new single-serve products aren't expected to reach the market until at least 2013. The Keurig system’s success has been fueling growth for Green Mountain, which is based in Waterbury, Vt.

The Wall Street Journal article

Lavazza press release