Lavazza Considering Merger with Dallmayr – A European coffee giant may be in the making

Talks are said to be in the early stages, with U.S. investment bank Goldman Sachs advising Lavazza. The merger would primarily be carried out through a share swap. Lavazza declined to comment on the report.

In 2024, Lavazza generated €3.35 billion in revenue, marking a 9.1% increase from the previous year, while its profit rose by 21% to €82 million. Munich-based Dallmayr reports annual revenues of €1.2 billion, employs 4,800 people, operates in over 50 countries, processes 71,000 tons of coffee annually, and manages more than 121,000 vending machines.

This would be Lavazza’s second major deal in two years: in 2024, the company acquired a 49% stake in Italian vending machine operator IVS, with an option to gain majority control between 2027 and 2034.

The coffee sector is currently under pressure due to soaring raw coffee prices—Robusta and Arabica varieties have increased by over 70% in 2024. A merger would strengthen the companies’ position in sourcing raw materials.

Meanwhile, Lavazza continues to expand its U.S. presence, aiming to shift 100% of its North American production to the United States.