Whispers of an Acquisition: Could the Italian Coffee Giant Absorb Age-Old Munich Firms?
Non-Censored Coffee Rumor Mill: Could Lavazza Takeover Dallmayr?
Scuttlebutt in the coffee industry is heating up! It seems Italy's extravagant coffee baron Lavazza is eyeing a takeover of the Munich-based coffee traditionalist, Dallmayr.
Munich - You bet your buttons this Bavarian city's favorite, Dallmayr, the iconic coffee house sporting that distinctive yellow facade in the city center, is the center of all the buzz. Reports from the "Corriere della Sera" and "Handelsblatt" suggest that this could be the beginning of a steamy alliance with the Turin-based Lavazza.
Last year, Dallmayr—the historic coffee empress—threw a takeover bid for the IVS Group, an Italian food service provider that also dabbles in coffee machines. Now, it's Dallmayr's turn to possibly face the barista battleaxe: the two coffee roasters are said to grow closer through a share exchange, with Lavazza snatching up the majority of Dallmayr. Negotiations are reportedly being handled by the Goldman Sachs team, and though these talks are in their infancy, they've piqued the curiosity of coffee enthusiasts worldwide.
Merger of the Morning Roast Titans? Dallmayr and Lavazza Zip Their Lips About Takeover Chatter
Dallmayr gave tz a dismissive nod to the conjecture about its company. Lavazza remained tight-lipped as well, when asked by Handelsblatt.
Recently, Lavazza shared their corporate future strategy. As announced by Antonio Baravalle, CEO of Lavazza, "We continue to gaze into the future, with expansion in North America, consolidation in Europe as the market leader with a focus on Italy, France, the UK, and Germany." This statement was made following the acquisition of the Italian startup Tabli, specializing in coffee capsules.
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No matter the price hike, consumers can't seem to get enough of black liquid gold. However, sales fell by 3.5 percent in 2024, as per Lavazza, due to increasing raw material costs, inflation, and tariffs[2].
Dallmayr has years of partnership experience with heavyweights, particularly with the coffee division of Switzerland's conglomerate, Nestlé (Nescafe), beginning in 1985[6]. However, Randlkofer and Wille families repurchased their Nestlé shares by 2015.
Historical Sweet Treats
Not just coffee, Dallmayr also offers a plethora of delectable foods, from pralines to more, conveniently situated near the city hall. The business can trace its roots back to around 1700under Alois Dallmayr, and it was bestowed with the title of a purveyor to the court. The coffee department, a distinguished aspect of the company, was established roughly around 1930. As per company records, Dallmayr churns out approximately 75,000 tons of roasted coffee annually at five locations in Germany. With a global workforce of around 4,800 employees, Dallmayr continues to be owned by the Randlkofer and Wille families.
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- "Reports from the 'Corriere della Sera' and 'Handelsblatt' indicate a potential share exchange between Dallmayr and Lavazza, with Lavazza possibly acquiring a majority stake in the Munich-based coffee house."
- "Antonio Baravalle, CEO of Lavazza, declared an expansion strategy focusing on North America and consolidating in Europe, particularly in Italy, France, the UK, and Germany, hinting at possible interests in businesses such as Dallmayr."