The thing about Lavazza: how Lavazza became \"Italy\'s favorite coffee.\"

Espresso is one of the coffee industry's most magical terms. It is not an overstatement to claim that espresso has meant a whole new life for a global industry that 20 years ago seemed to be up against the wall in terms of projected growth and profitability. Yes, it is true that a multitude of espresso cups do not equal the same volume in a standard German or American cup. But in return, that is another matter.

Espresso has been of signal importance for its potential in added-value profitability, positioned as a primarily out-of-home drink (although this is quickly changing with the growing home drinker's acceptance of espresso pods and caps, spurred on at last by affordable home espresso brewers). Yet, of far more importance than short term profit is the long term effect of espresso on the coffee industry; in all its various formats and recipes, espresso is a key coffee drink of the future with youth appeal to make this real.

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No international coffee company knows these words better than Lavazza. The thing about Lavazza is that no coffee company has striven harder to catch the eye and the taste of youth. It has created bold and striking new packaging formats and designs, and produced smashing international marketing campaigns, the likes of which coffee has never seen.

Lavazza was not the first Italian company to promote exports of its espresso products, but what it has achieved outside of Italy in the 25 years of its exporting efforts is to forge a pathway where Italian espresso had never gone before. What has been good for Lavazza, thereby, has been very good for espresso in general. In the process, Lavazza has become the best-known espresso brand name and the largest espresso coffee company in the world.

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As a coffee roaster, Lavazza green coffee usage comes to approximately 2.5% of bags shipped globally, enough to rank it among the half dozen largest coffee companies--albeit far smaller in size than the top three. It now sees a billion Euro turnovers, and virtually all of this in espresso coffee and espresso brewing machines.

As a single brand name, however, in terms of sales and most especially in consumer recognition, its value is of far more significance then its actual size. This total commitment to "branding" over the years, and the result earned in Italy and worldwide is one distinctive attribute of Lavazza.

Another key factor in the Lavazza corporate character is its faithfulness to Italian style espresso blends, and more so, to its own historic blend recipes. This is a company that began roasting coffee in 1895.

This sense of tradition explains why the company roasts all of its coffee in Italy--also in part to maintain its product standards by keeping production nearby. The great majority of their impressive arrays of espresso brands are prepared in Lavazza's giant factory, not far from company headquarters in Turin. This is the largest coffee factory in Europe.

That Lavazza is a family owned company also figures prominently in the company's core profile. Joining the older, famed generation of Lavazza cousins, Emilio and Alberto Lavazza, in management roles are a new generation of cousins--Giuseppe, Antonella, Marco and Francesca Lavazza. The company's general director is Gaetano Mele.

If Lavazza is built on a plethora of brand families and their extensions, it is also planned to cover every market sector--retail, HORECA, vending, office coffee service and Lavazza's own specialty espresso bars and cafes (directly owned or franchised). For these sectors, the products offered cover the price spectrum and too the brewing technology.

Lavazza produces whole bean blends, roast & ground, decaf, espresso pods and caps. It also has its own dedicated, branded, brewer plus capsule systems.

This universe of coffee products is sold throughout Italy and in more than 80 other national markets. In Italy, Lavazza remains dominant in the retail sector with an approximate 50% share of coffee sales. Combining its coffee sales in the various sectors, almost two-thirds of all coffee consumed in Italy is by Lavazza.

Abroad, the company has evolved into a "group" with particular market presence in France, first and foremost, where it is number one among Italian espressos. Lavazza is also an espresso product leader with important volumes in Germany, Austria, Benelux, Spain, the UK, Australia and India.

In France, for the leading example, the company has attained a turnover over of some 125 million Euros in the past 12 months. Lavazza France employs 200 workers. In year 2007, the subsidiary achieved an increase in turnover of 12.6%, versus the result for 2006.

Growth in France has been further stimulated recently by the launch of the Lavazza 'Alleggro' brand of pods for home usage. The Allegro line extends to four entries: Classique, Corse, Doux and Decafeine.

The Lavazza Blue line of pod brewing machines by Guzzini provides strong support for these pods. LPGuzzini pod brewers have a unique, youthful look and come in a variety of colors (most surely other than blue).

Meanwhile, in Germany, the Lavazza "Caffe Crema Dolce" brand was given the "Best Seller Award of The Year" for 2007 in the competitions hot beverages category. Launched in 2006, the brand is honored not just for its highly successful sales record, but also, as judged, for its innovativeness and uniqueness.

Lavazza UK reports achieving a 9% share of its national roast & ground retail market. While in Ireland the company is retail leader with 19% of sales.

Via its Lavazza USA subsidiary, the Group recently entered the Mexican market in an agreement with The Coffee Factory, a Grupo Carso company. The Coffee Factory will distribute Lavazza products to the HORECA sector, and the Lavazza Blue espresso machine for home use.

As well, The Coffee Factory operates a coffee shop chain in Mexico numbering 70 outlets all of which are being remodeled to feature Lavazza images. Shop decorative images are taken from the prized collection of Lavazza Calendars that over many years have included the work of some of the world's most gifted young photographers.

Lavazza India is perhaps the Group's brightest star for charting the future and spreading the gospel of Italian espresso. This Lavazza subsidiary owns the Barista Coffee chain of espresso bars, numbering 150 outlets. Market leader in the sector, Barista Coffee is present in 22 cities and serves 300,000 cups/day amounting to more than 800 tons of coffee/year.

The Lavazza initiative in India also includes the activities of its Fresh and Honest Coffee Company. Provider of coffee and brewing equipment to the HORECA sector, Fresh and Honest is also the market leader in its sector. This Lavazza Company sources India's premier restaurants and five-star hotels with an upscale whole bean blend.

Although known for its retail brand power, Lavazza has in recent years been moving into the espresso bar and care sector. In addition to its numerous Barista Coffee Shops in India (operated under a franchising license system), the company is expanding three other espresso cafe concepts.

These Lavazza espresso-theme chains include Caffe di Roma with 87 outlets, many in Spain but now also in other nations. Branded Lavazza chains include Lavazza Bar and the new Espression concept.

Lavazza Bar in Germany has 15 outlets. In the U.S., there are three Lavazza Bars in Chicago. The most recent sales outlet format, as of 2007, is the highly stylized and branded "Espression By Lavazza." The first two of these outlets have opened in Germany.

That the important university city of Heidelberg is the location for one of these cafes is no accident, as they are decidedly "bright young chic" in look and designed to be so to the last detail. The espresso drinks offered include coffee-based specialties from recipes that Lavazza commissioned from two of Europe's famed chiefs, Spain's Catalan chef Ferran Adria and Italy's Moreno Cedroni.

New product developments are the focus of Lavazza's Turin Training Center. Developments conceived or refined there include the extensions to the Lavazza Point and Lavazza Blue capsules-plus closed-system brewing machine "packages" for out-of-home and home markets.

The Turin Training Center is of great importance to Lavazza as it guides the company's range of products toward alternative recipes for coffee drinks. These initiatives have birthed the "i Piacere" array of espresso-based cocktails for the bar/cafe market, and the new Sorbetto Cremespresso shake that can be made in a granita machine.

Now, fruits of labor at the Training Center have brought forth Lavazza Le Voglie. This is a nozzle spray-can product available as a specially refined milk mousse to add to espresso for a caffe machiato. Le Voglie has been extended to include hazelnut and chocolate flavored espresso toppings.

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There is yet more to the world of Lavazza espresso, and more to come. These revelations are to be discovered at any of the Group's 43 branch Training Centers scattered around the globe, including the newest centers in Johannesburg and Casablanca. Training Centers host demonstrations and give courses in all aspects of the Lavazza world--and too in the classic strictures of real Italian espresso. Around 25,000 people were hosted last year in Lavazza Training Centers.

In all, the Lavazza Group now has subsidiaries in Austria, Brazil, France, Germany, India, Portugal, Spain, the UK and the U.S. These fully-owned subsidiaries are a sure indication of where Lavazza has focused energy for international growth.

The thing about Lavazza is that no company in. coffee is more central to the espresso phenomenon, and particularly to its future. This is because the name means more than a supermarket brick pack, more than a valve bag for the bar, more than a pod or cap for office or home--all of which the company produces--"LAVAZZA" has become an international brand with increasing recognition as the "Italian Espresso."

In many nations, one needs merely hang a sign in an establishment with the name Lavazza on it and people know what's on offer.

Lavazza and Pods

Single servings of espresso, coffee and tea have been in high demand in recent years. The advantages of using a single serving, or a pod, are many. Pre-measured pods are quick and easy to use, convenient, require little clean up and are consistent in coffee or tea composition. Not to mention they can be used anywhere: at home, at the office, pods are used increasingly by catering services and at hotels and restaurants.

Lavazza, established in 1895 in Turin, Italy are among the leading companies expanding the single serve industry.

According to Lavazza, "The traditional roasted and packed coffee purchased in retail shops will remain fresh in a sealed package for up to a year, but once opened will go stale in less than a week. Each Lavazza capsule is individually sealed and will remain fresh until you're ready to use it."

Lavazza currently offers Lavazza Blue coffee capsules in Espresso Dolce, Espresso Delicato, Espresso Intenso, Espresso Amabile, Espresso Ricco, Espresso Decaffeinato, Espresso Decaffeinato Soave, Caffe Crema Gusto Dolce and tea capsules in The Nero Classico, The al Limone, The Verde, The Al Frutti Di Bosco, The Alla Pesca, The Alia Menta, The Verde Menta e Limone and Camomilla. The pods are to be used with the LB 800 or LB 1000 espresso machines.