Lavazza exits Indian Markets

Italian firm sells Barista to Haryana-based company

New Delhi: Barista, pioneer of cafe culture in India, has been sold once again.

Italian coffee roaster, Lavazza, which bought the café brand Barista in 2007, has sold the coffee shop chain with over 190 cafes to Carnation Hospitality, a company owned by Rollatainers. Haryana based Rollatainers, is one of the largest integrated packaging company in the country.

However, coffee shops will keep providing Lavazza coffee due to long-term supply agreement between its company Fresh and Honest Cafe and the Barista.

Lavazza said that the sell out is part of its effort to realign and restructure its businesses globally and lay greater focus on its core business, coffee.

“The decision to move out of Barista has been taken accordingly with the global businessguidelines of the group to no longer manage directly the coffee shop business," said Antonio Baravalle, chief executive officer (CEO) of Lavazza.

He said that changes in the market required Lavazza to relook at its commercial penetration methods.

“As a result, Lavazza has decided to concentrate on coffee in the region,” said Mr Baravalle.

The entry of new players Starbucks has increased the competition in the coffee cafe business in India.

Cafe Coffee Day, which has largest number of outlets in the country, UK chain Costa Coffee and Dunkin Donuts are others players in the segment.

Mr Baravalle said that India continues to remain an extremely important market to Lavazza’s international operations and it is strategic to the brand’s overall growth initiatives across the world.
Lavazza, established in Turin in 1895, has been owned by the family of the same name for four generations.

Barista was formed in 2000 and at one point of time even Tata Coffee owned a stake in it.

( Source : dc correspondent )
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