Lavazza to exit coffee shop business in India with Barista sale

REUTERS - Italy's Lavazza said it would wrap its coffee shop business in India by selling the Barista chain, a move aimed at freeing the company to focus on its core coffee business.

Lavazza, which bought the cafe brand Barista in 2007, has sold the coffee shop chain to Carnation Hospitality Pvt Ltd, owned by packaging company Rollatainers Ltd , it said in a statement on Tuesday. The company did not disclose the deal value.

The move comes at a time when the world's No. 7 coffee maker by sales is aiming to boost revenue by almost 50 percent in the next 10 years as it fights to remain independent.

"The decision to move out of Barista has been taken accordingly with the global business guidelines of the group to no longer manage directly the coffee shop business," Lavazza Chief Executive Antonio Baravalle said in a statement.

The family-owned company, founded by Luigi Lavazza in 1895, will continue to supply Lavazza Coffee to Barista coffee chains as part of a long-term supply agreement, he added. Barista has over 190 outlets.

In India, Western style coffee shops are growing in popularity and competition heats up with the entry of international brands like Gloria Jean's Coffees and Starbucks Corp competing with local players like Cafe Coffee Day.

(Reporting by Nivedita Bhattacharjee in Mumbai; Editing by Prateek Chatterjee)