Italian coffee giant Lavazza is doing a balancing act in launching ready-to-drink cold brew drinks in the U.S., both leaning into its deep heritage and iconography while still appealing to American tastes.
The family-owned, Turin-based brand has been one of the most recognizable Italian coffee exporters for the past century, generating around $2.5 billion in annual revenue last year. Yet North America has become a particular focus for the company; as of this year, all coffee products for the U.S. market are roasted at Lavazza’s West Chester, Pennsylvania facility, which was expanded by over 10,000 square feet last year specifically to build out its direct-to-consumer business.
“The journey, that I’m proud to say has been kind of successful this year, was designed in a way that we were right to position the brand in this over-crowded market, trying to leverage on the assets that are unique to the brand, unique to our Italian heritage, unique in terms of coffee roasting and packaging,” said Davide Riboni, president and CEO of Lavazza’s North American business, speaking from the facility in Pennsylvania.
Up until now, Lavazza’s CPG focus has been on moving packaged whole bean and ground coffee (plus K-Cups) through grocery retail. In 2020, the company launched a second premium brand, Tierra Organic, as a “more premium, more curated” line of organic coffee, and targeting that more elevated experience is also part of the inspiration for the RTD products. Riboni noted that Lavazza’s new 4-SKU line of 100% Arabica cold brews — distinct from its existing RTD offerings sold in the U.K. — appeal to younger U.S. coffee drinkers who are increasingly shifting to cold consumption occasions, while also ticking the box for organic ingredients, dairy-free options and relatively low sugar. The line is available in Classic, Nitro, Cappuccino and Double Shot with Oat Milk varieties in 8 oz. slim cans, in singles, 4-packs and 12-packs.
While the drinks themselves have been formulated to match American consumers’ tastes, Lavazza’s packaging and positioning is unmistakably Italian. Each 8 oz. can features a unique design tied to a region or city — Tuscany, Milan, Venice or Capri.
“We do believe that Lavazza, considering the years and the knowledge and expertise that we have in all the channels in all the markets around the world, can play a role where the U.S. market is moving, in terms of a sophisticated market where people are keen to pay a premium to get a better experience while sipping their favorite coffee,” said Riboni.
While not directly connected, the move into RTD allows Lavazza to lean into its CPG business while its other major revenue stream — office and corporate accounts, under the Lavazza Professional division — continues to rebound post-pandemic. Riboni said the total business is currently weighted around 60% to 65% in consumer products, but aims to be at around a 55%-45% split between the two once fully recovered. The RTD products will be distributed across Lavazza’s existing grocery partners (as well as in coolers at some convenience stores, Riboni said), but more importantly they will add another occasion and format to the brand’s “complete set of solutions” for consumers.
“We have a sizable presence in the out-of-home channel, in fine dining, in several hotel chains and very beautiful properties around the country, and also have our coffee in offices,” he said. “That’s where people get to know and experience the brand, and they can go home and buy their coffee from Amazon or stop by their favorite grocery store and buy coffee from there. So they are able to have it there but also we are expanding and getting an even bigger presence across these channels with a complete range of solutions.”