Giuseppe Lavazza: “Ready for a major acquisition even with a financial partner”

TURIN. A possible acquisition, such as to require the support of a financial partner. There is also this in the future of Lavazza, the multinational coffee company which yesterday announced the passing of the baton from the third to the fourth generation of the family of entrepreneurs from Turin. Giuseppe Lavazza, 58 years old in June, takes over the presidency from his cousin Alberto, at the top of the company for 15 years. Confidence in CEO Antonio Baravalle confirmed, who has been at the operational leadership of the group for 12 years.

President Giuseppe Lavazza how do managers and families of Italian capitalism coexist?
“Well. Many years ago we made the choice. We shareholders work together with managers. Elbow to elbow but with a precise dividing line».

Where does that separation go?
“Strategic guidance to the shareholders, the construction of a long-term corporate perspective to the managers”.

What results did this scheme produce?
«We must thank everyone and be grateful for the courage in the choices shown by our third generation starting with my cousin Alberto. Under his presidency, turnover increased from 1 to 2.7 billion, almost tripled ».

Is it the result of acquisitions or internal growth?
«I would say for both. Acquisitions are important. The latest is from a few months ago, in France, and concerns the MaxiCoffee e-commerce platform which will allow us to play a strategic role in online commerce. But the merit of the increase in revenues is also due to internal growth, efficiencies and the ability to improve the product».

Is there a stock market listing in the future?
“We have been and continue to be reluctant. For several reasons. First of all because the quotation requires the achievement of short-term results. This is not our perspective. Ours are medium-long term strategies. And then because we have sufficient resources to invest in the company without resorting to the stock market. Finally, we have no intention of selling shares».

Are there any new acquisitions on the calendar?
«We are scanning the horizon, it’s our job. We don’t look for them at all costs, but we are careful not to miss opportunities».

What do you see on Lavazza’s horizon today?
“There is nothing in the immediate term, if large opportunities open up we may need a financial partner to realize them”.

Will it be a North American operation?
«The American market is becoming important for us. But it is not certain that it is in America».

Until the early 2000s you were an important Italian coffee company. How much does foreign countries weigh in your turnover today?
«In 2010 we sold 70 percent of our products in Italy. Today the relationship has reversed. We make 70% of our turnover outside Italy».

In Countries where the coffee culture is very different: from our cup to the drink of US consumers…
“Certain. But our effort is to guarantee constant quality in all our products, from the cup to the filter coffee. Quality is our DNA».

How has your relationship with the populations that produce coffee changed in recent years?
“For a long time it was a relationship brokered by big traders. Then, since the 90s, we have chosen to overcome that mediation and enter directly into contact with the producers, transforming ourselves from customers into partners. We have had very interesting experiences. In war-torn Yemen we managed to bring together 1,200 producers who today supply one of the finest coffees, that of the 1895 line. Yemeni coffee is one of the best in the world».

You sponsor great tennis, the ATP Finals and the Grand Slam tournaments. Which is the one where the most coffee is consumed?
«The race is won by Roland Garros. But the other three tournaments are very close. Let’s say that overall in the four main tournaments we serve about two million cups. We entered the world of tennis in 2011 at Wimbledon. At the time, the cafeteria was a service business. Today, on the contrary, it has become part of the glamor of the racket world. And this is true in Europe but also in the USA and Australia».