The Napoli-based coffee roaster has reported steady revenue growth in its domestic market during the first quarter of 2023 and established a new US-based subsidiary to lift international segment sales
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During the first quarter Caffè Borbone said it had ‘laid the foundations’ for international sales growth | Photo credit: Caffè Borbone
Italmobiliare has cited Caffè Borbone as the stand-out performer in its first quarter revenues as the coffee roaster eyes opportunities in the US.
Italian holding company Italmobiliare, which became the majority stakeholder in Caffè Borbone in 2018, reported group sales growth of 6% to reach €138.5m ($150m) in the three months ended 31 March 2023.
Caffè Borbone, one of Italy’s leading producers of compostable coffee pods and compatible capsules, contributed 56% of group sales during the period.
Italmobiliare said Caffè Borbone’s revenues had ‘grown significantly’ during the period to reach €77m ($84m), 16% higher than the corresponding quarter of 2022. The coffee roaster also posted a record monthly turnover in March 2023, exceeding $30m ($32.6m) in gross turnover for the first time.
Quarterly revenue growth was led by online sales, with the coffee roaster’s direct e-commerce channel and sales on Amazon and ‘specialised online portals’ collectively increasing 48%. Sales via ‘large-scale distribution’ grew 17% during the quarter while proceeds from specialist stores increased 20%.
During the first quarter Caffè Borbone also ‘laid the foundations’ for international sales growth, establishing Caffè Borbone America Corp for €2.2m ($2.5m).
In a statement accompanying its first quarter results, Italmobiliare said it had acquired assets from ‘third parties through which Caffè Borbone previously served the American market’ to form the subsidiary.
International sales currently comprise just 5% of Caffè Borbone’s revenues. CEO Marco Schiavon said there is a ‘great opportunity for us to be able to grow abroad' and told reporters the Italian name and branding of Caffè Borbone is ‘very appealing’ in the US market.
Further highlighting growth potential in the US, fellow Italian coffee roasters illycaffé and Lavazza have recently cited higher US sales as strongly contributing to revenues.
illycaffe, which is seeking to strengthen its presence in key international markets, saw 27.7% year-on-year revenue growth in the US in its first quarter, while Lavazza reported US retail sales increasing 14% in 2022.
Italmobiliare also operates food companies Capitella and Callmewine, and counts Italian energy companies Italgen and AGN Energia among its portfolio of 11 brands.