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Lavazza And PepsiCo Team Up To Move Into Fast-Growing RTD Coffee Market

Lavazza and PepsiCo have collaborated to launch a premium ready-to-drink (RTD) iced coffee product in the UK.

Lavazza-pepsicoThe partnership will see the two companies join their respective strengths across marketing, sales and distribution to roll-out the new Lavazza Iced Cappuccino during the summer.

A statement from the two firms said: “Lavazza’s expertise in high quality coffee sourcing and roasting, as well as consumer marketing and product development, blended with the strength of existing beverage know-how from PepsiCo, creates the perfect partnership to tap into the increased demand for premium iced coffee.”

The UK launch is the first step of a collaboration between Lavazza and PepsiCo in Europe, aimed at innovating in the rapidly growing coffee segment, in which soft drinks giant Coca-Cola has been moving into following its acquisition of Costa.

Following the launch, both companies will work together to broaden the offering with new products, as well as expand into new markets in 2020.

“We are proud to cooperate with PepsiCo as we enter the fast-growing iced coffee segment for the first time,” said Sergio Cravero, Chief Marketing Officer of Lavazza Group.

“Lavazza’s commitment to quality, combined with PepsiCo’s expertise, allows us to explore and offer in certain strategic markets more and more ways to enjoy coffee, in line with the international vocation of the Group to grow on a global scale.”

Mark Kirkham, Vice President and Head of Marketing at PepsiCo West Europe Beverages, added: “PepsiCo is very excited to be introducing Lavazza Iced Cappuccino to the UK market. This is the start of a collaborative partnership with Lavazza where we plan to innovate and bring to market new offerings based on consumer insights and preferences in the growing premium coffee space. We look forward to building on this initial offering and setting the stage for European expansion in 2020.”

Lavazza Iced Cappuccino (RSP: £1.70 / 250ml) was unveiled at this week’s Wimbledon Tennis Championships. It is described as having the “intense taste of Lavazza coffee blended perfectly with milk to offer the perfect coffee refreshment”.

NAM Implications:
  • Obvious synergies in this complementary fit.
  • Worth a reassessment of relative competitive appeal…
  • ..by those contemplating entering what will be an even faster growing segment…
  • Watch this space!