Lavazza plans US expansion amid Brazil coffee tariff concerns

Reuters

Thu, Apr 3, 2025, 7:23 AM 1 min read

MILAN (Reuters) - Italian java shaper Lavazza plans to property up with enlargement successful the U.S. market, it said connected Thursday, adding it would measure the imaginable interaction of tariffs connected its Brazilian beans earlier making a determination connected boosting section production.

The radical presently produces locally astir fractional of what it sells successful the United States, wherever it has a works astatine West Chester successful Pennsylvania.

"Our extremity remains to turn successful the U.S. due to the fact that ... it has an immense marketplace size compared to the remainder of the world," Chief Executive Antonio Baravalle said successful a property league successful Milan arsenic the radical presented yearly results.

"We had already planned to summation it (output) to 100%", helium added. "We are acceptable to go... but present determination is this different constituent that is to beryllium investigated, the duties for Brazil."

Brazil is the world's starring java exporter. The United States has imposed a 10% tariff connected imports from the country.

Baravalle added that expanding accumulation successful the U.S. volition instrumentality betwixt 18 months and 24 months.

Revenues astatine the family-owned group, which bought French java seller MaxiCoffee successful 2023, roseate 9% past twelvemonth to 3.35 cardinal euros ($3.7 billion), besides acknowledgment to an summation successful prices.

Its halfway nett accrued by 18.6% to 312 cardinal euros, contempt a 70% summation successful greenish legume prices past year, the Turin-based radical said.

Lavazza is not seeking to bash much deals for now.

"We already person capable connected our plate," the CEO replied to a question astir imaginable acquisitions. ($1 = 0.9020 euros)

(Reporting by Elisa Anzolin; Editing by Keith Weir)