Essay on Starbucks Coffee And The Coffee Industry

1402 Words Nov 11th, 2015 null Page
Starbucks coffee needs to stay alert of an Italian coffee business trying to take over the American coffee market. Italian coffee manufacturer Lavazza states it’s worth $1.7 billion, and it posted a working benefit of about $139.9 million toward the end of 2014. Therefore it increased 16 percent from the prior year. However it had the majority 44.9 percent market share in Italy. It is not simple in order to master the U.S. coffee industry, especially with an established brand, Starbucks, on every block. Lavazza has a new strategy. He said, “If you can’t beat your competitor with quantity, show off your quality.” The U.S. coffee market is worth between $30 billion and $32 billion yearly. With claim to fame espressos up a 37 percent volume share however right around 50 percent of its quality, according to the Specialty Coffee Association of America. Lavazza is the world’s seventh largest coffee business. However they have spent $20 million on broadcast ads just in the United States. Recently Lavazza have partnered up with U.S. Open and the Guggenheim Museum in New York, for their first full North American advertising campaign. Throughout 2016 Lavazza’s will continue to strengthen products that can be used inside the home, in addition to out-of-home locations. Lavazza have teamed up with high-end events and products in order to get to the top. However since the brand is coming from Italy it is already associated with having quality coffee. By turning into the result of…

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