Lavazza eyes merger with Germany’s Dallmayr to strengthen European coffee market position
A Lavazza–Dallmayr merger could form a €5 billion (US$5.8B) coffee powerhouse, with Germany becoming Lavazza’s third-largest market globally.
GERMANY – Italian coffee giant Lavazza Group is exploring a potential merger with Germany’s Dallmayr Group, in a move that could create a coffee powerhouse with combined revenues nearing €5 billion (US$5.8B).
According to reports by Corriere della Sera, Lavazza has appointed Goldman Sachs to advise on the proposed deal, which would see the Lavazza family retain a majority stake in the merged entity.
Lavazza, headquartered in Turin and owned by the Lavazza family, operates eight manufacturing plants across five countries and employs over 5,500 people globally. The company markets coffee under its flagship brand Lavazza, as well as Carte Noire and others.
In 2024, Lavazza recorded revenue of €3.35 billion (US$3.87B), reflecting a 9.1% year-on-year increase. Its EBIT stood at €130 million (US$150.2M), up from €97 million (US$112.08M) in 2023, while EBITDA rose by 18.6% to €312 million (US$360.6M). Net profit also saw a significant boost of 20.6% to €82 million (US$94.76M).
Despite facing sharp increases in coffee prices, particularly arabica and robusta—both of which surged by more than 70%—Lavazza maintained profitability.
The company has identified Germany as a key market in its strategic expansion across Europe, focusing on strengthening its omnichannel footprint.
Dallmayr, one of Germany’s oldest and most recognized coffee brands, traces its origins to a Munich shop established over 300 years ago. Still family-owned, the company is led by Johannes Dengler and Florian Randlkofer.
Dallmayr offers coffee under brands such as Prodomo, Capsa, and Crema d’Oro and distributes across both retail and foodservice sectors. It is a major supplier to German supermarket chains like Rewe and operates a vending and office coffee solutions division.
In 2024, Dallmayr reported revenues of €1.2 billion (US$1.4B) and employs approximately 4,800 people.
In addition to its coffee operations, Dallmayr owns Europe’s largest delicatessen store, which attracts 3.5 million visitors annually.
The merger of Lavazza and Dallmayr would create a giant with revenues of almost €5 billion and would make Germany Lavazza’s third largest market after Italy and France.
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