* CEO sees 2012 net profit 40-45 mln euros from loss in 2011
* Lavazza owns 7.5 pct in Green Mountain, says not to raise
* Sees coffee prices stable in 2013
By Antonella Ciancio
MILAN, Dec 12 Italian coffee roaster Lavazza
expects the United States to overtake Europe as its
second-biggest market behind Italy over the next 10 years, as it
expands in the growing market for single-serve coffee machines.
The Turin-based group founded by the Lavazza family in 1895
expects to return to profit this year after cutting costs and
expanding its presence in foreign markets, chief executive
Antonio Baravalle said on Thursday.
"Our aim is to persuade 85 percent of Americans who drink
coffee on the street to brew it at home," Baravalle said at the
presentation of the 2012 results.
Lavazza also plans to increase its presence in India, China
and Russia through local partnerships, the CEO said.
The group, at its fourth family generation, has built up a
7.5 percent stake in U.S.-based Green Mountain Coffee Roasters
Inc to strengthen its presence in north America.
Green Mountain's Keurig one-cup coffee brewers control more
than three-quarters of the U.S. market.
Baravalle said Lavazza was not considering raising its stake
in Green Mountain, saying it represents a long-term industrial
partner for the Italian group.
Lavazza expects a revenue boost from the new single-cup
espresso and cappuccino machine it launched in November with
Green Mountain in the U.S. market, the executive said.
The machine, with a retail price of around $229, competes
with the at-home Verismo brewer launched by Starbucks Corp
, best known for serving coffee drinks at its shops.
One-cup coffee makers and the coffee-filled cups, discs or
pods they use to make barista-worthy individual drinks account
for just 8 percent of total worldwide coffee sales, but that
share is growing fast.
Lavazza makes 30 percent of its revenues from coffee cups, a
market that represents a priority for its future growth.
Nestle SA's Nespresso coffee makers, marketed by
actor George Clooney, holds a 35 percent share of the global
Lavazza sells 60 percent of its ground coffee bags and
espresso machines in recession-hit Italy, where it has a 43.4
percent market share by volumes.
Lavazza expects a net profit of around 40 million-45 million
euros ($52-$59 million) this year from a loss of 9.1 million
euros in 2011, when it was hit by record-high coffee prices and
"Profitability is back to pre-crisis levels, and we have
good prospects for next year," Baravalle said.
Baravalle, who joined Lavazza last year after having once
headed Turin carmaker Fiat's Alfa Romeo brand, said the
family was not considering tapping financial markets to fund
He said he expected coffee prices to be stable in 2013.