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Lavazza triples its business in Argentina, establishes new hub for Latam

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ROME, Italy – Although Argentina is not close to the consumption numbers of the Nordic European countries there is a tendency to growth and the consumption of coffee becomes more and more sophisticated.

Thus, Lavazza, the 124-year symbol of Italian coffee worldwide, strengthens its presence in Argentina through the retail market and Food Service, with the aim of tripling its business in Argentina and become the subsidiary for all of Latin America.

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If we consider the business inside the country and Food Service, the business of the Italian brand will quadruple.

Italy’s largest coffee group Lavazza is one of the most important natural roasters of coffee without sugar in the world – leader in Italy with 41% of the retail market and present in more than 150 Michelin-starred restaurants – and saw in Argentina an opportunity to further expansion, leveraging organic growth.

In this sense, the volumes projected in Argentina for 2019 are 100 tons of coffee (70% growth vs 2018) and more than 1,5 million capsules (+ 40% vs 2018), thanks to the activation of the Retail channel, Food Sales sales points and distributors in the domestic market.

Best-selling Italian brand Lavazza, which wants to generate 70% of group revenue outside Italy by 2021, views the United States, France (second-largest market for the company), Germany, Britain, Australia, Russia, Poland and Latin America as key regions for future expansion.

With revenue of just under 2 billion euros (gradually reducing its reliance on Italy which accounted for 36 % of group sales in 2018), 2019 will mostly be a year dedicated to organic growth and integrating companies they bought last year such as that of the coffee business of Mars Inc.

Emanuele Uccellini, Director of Latin America and President of Lavazza Argentina, explained that “Argentina is one of our 11 subsidiaries in the world. We are even selling more capsules in Argentina than in Brazil, the growth is 15%, while the rest of the coffee market grows to 4%.”