Italian coffee producer, Lavazza Group, has entered into an agreement to buy Mars Inc.’s coffee unit, Mars Drinks.
The acquisition covers Mars Drinks’ coffee business in North America, Canada, Japan, and Europe. Under the terms of the agreement, Lavazza will purchase Flavia and Klinz, two leading office coffee makers under Mars Drinks.
The precise financial details of the acquisition have not yet been revealed, however, Reuters reported the deal to be worth approximately US$650mn, including debts.

Lavazza Group is the third largest coffee producer in the world, holding about 2.5% of the global market according to Euromonitor International. This deal follows its previous acquisitions of Carte Noir and ESP in France, Merrild in Denmark, Blue Pod Coffee in Australia, NIMS in Italy and Kicking Horse Coffee in Canada.
“This acquisition fits perfectly within our international expansion strategy, the objective of strengthening key markets, as well as the pursuit of having an even closer relationship with end consumers,” remarked Antonio Baravalle, CEO of Lavazza Group.
“Indeed, this acquisition strengthens the Lavazza Group’s position in the OCS [office coffee service] and vending segments, which offer considerable opportunities for growth and development.”
“Today’s transaction with Mars, Incorporated is consistent with a common vision and shared values between two prominent family-owned companies who have a strong focus on delivering quality products with uncompromising commitment to our employees and associates, with a long-term vision.”
As part of its long-term strategy, Lavazza has revealed it will be moving Mars Drinks towards the away-from-home coffee market.