Lavazza brings ‘Espression’ to India

Thursday, 17 November 2011 00:06 - - {{hitsCtrl.values.hits}}

NEW DELHI: Turin-based Italian coffee brand Lavazza announced the launch of its premium format, ‘Espression’ in India with plans to open up to 30 outlets in the next three years in the country.

Lavazza that also owns the ‘Barista’ coffee chain with 160 outlets in India, is also setting up a new coffee processing factory in Andhra Pradesh with an investment of Rs. 120 crore to meet increasing coffee demand.

“We are announcing the launch of our international format ‘Espression’ in India...In the next three years the plan is to open 25 to 30 such outlets,” Lavazza Asia and Pacific Director Attilio Capuano told PTI.

He said, ‘Espression’ is positioned a notch above the company’s existing coffee chain brand Barista, with products priced about 20 per cent more.

“Espression in India is a part of our long term strategy to strengthen the Lavazza brand here,” he said.

At present Lavazza runs 30 Espression outlets globally. Besides operating coffee retail outlets, Lavazza also sells coffee products, and coffee making machines in India.

In order to meet the growing demand for coffee, the company is currently setting up a new facility at Tada in Andhra Pradesh.

“The new factory will be operational in the middle of 2012. To begin with, we will meet the domestic coffee demand from the new factory but from 2013 onwards we might look at exporting to other Asian markets,” Capuano said.

The company already has a coffee unit located at Porur near Chennai, he added.

Lavazza entered India in 2007 by acquiring Barista Coffee Company and Fresh & Honest Cafe Ltd.

Asked if the company was considering more acquisitions here, he said: “Two companies that we acquired in 2007 have given us a strong platform to expand in the country. We are not looking at more acquisitions at the moment.”

Lavazza that has presence in over 90 countries around the world had a turnover of 1.14 billion euro in 2010.

“We had earmarked an investment of 100 million euro in India for acquisitions, retail outlets expansion and enhancing coffee processing capabilities, which is being made,” he said, without specifying the timeline.