Lavazza plans to take over Munich's traditional house Dallmayr!

Lavazza plans to take over Munich's traditional house Dallmayr!

In the world of coffee, it rumbles tremendously. The Italian company Lavazza has an eye on the traditional Munich family company Dallmayr. According to the Italian daily newspaper Corriere della Sera , a family business with a long history, seriously dealing with a takeover of Dallmayr. At an inquiry, however, Lavazza did not comment on these rumors, and Dallmayr also remains confident and states not to comment on speculation about the company.

The background of the conversations is not exactly confusing: 2024 raw material prices for coffee attracted an average of 70 percent, which puts the entire industry under pressure. Lavazza, which strives to expand its market shares, plans an expansion to Germany in order to be able to meet the challenges in the coffee industry. According to the reports, the dialogue between the two companies is conducted by the US investment bank Goldman Sachs, whereby the negotiations are at an early stage.

who is Dallmayr?

Dallmayr has long been known in Munich. The company is not only known for its delicatess business in Munich's old town, but is also one of the outstanding coffee roasters in Germany. Every year, over 75,000 tons of roasted coffee are produced at various locations in Germany. Dallmayr sells coffee both in the food trade and directly on hotels, bars and restaurants. Since 1933, coffee has been the focus of the company, which operates under the umbrella company Alois Dallmayr KG and recorded annual turnover of around 1.2 billion euros.

The history of the Nestlé participation is particularly exciting: originally the food giant in 1985 acquired 51 percent at Dallmayr coffee OHG, but in 2015 the Dallmayrs bought their shares back. The company remains in family hands, which is crucial for the character and identity of Dallmayr.

lavazza on growth course

On the other hand, Lavazza also has big plans. The company, which was founded in Turin 130 years ago, looks back on sales of 3.35 billion euros in 2024 - an increase of 9.1 percent compared to 2023. With all growth, there are also challenges on the agenda. The coffee industry is heavily burdened by unpredictable weather conditions, wars and rising raw material prices, and experts warn of the consequences of climate change, which the acreage for coffee is not up to.

The planned merger with Dallmayr could be done through a stock exchange, with Lavazza striving for a majority in the Munich company. This would already be the second acquisition for Lavazza within a few years after the company made a takeover offer for the Italian market leader in the field of automatic coffee and beverage supply, IVS. Lavazza currently holds 49 percent of IVS and has the option of taking over full control between 2027 and 2034.