Italian heritage coffee brand Lavazza has undergone a significant leadership change in China. Its operating entity, Yi Bai Coffee (Shanghai) Co., Ltd., recently saw several business registration updates, with Chen Qi replacing Ding Xiao as legal representative, chairman, and general manager. Chen Qi previously served as Yum China’s Chief Customer Officer, bringing extensive experience in marketing and brand promotion. She held roles at KFC China as marketing director, vice president, and general manager, demonstrating exceptional expertise in brand strategy and market expansion. Additionally, Chen has worked at renowned companies like Microsoft and L’Oréal, amassing deep marketing and advertising experience.

Founded in 1895, Lavazza is one of the world’s leading coffee roasters, with operations in over 140 countries. In 2020, Lavazza partnered with Yum China to form a joint venture, officially entering the Chinese market and opening its first flagship store in Shanghai. Yum China has high expectations for Lavazza, aiming to drive its growth in China through brand building, enhanced digitalization and delivery capabilities, and upgraded store designs. In 2023, Lavazza set a goal to expand to 1,000 stores within three to five years.

By 2024, Lavazza’s store count in China had grown fivefold, reaching over 100 locations across 11 cities, with revenue in the first half of 2023 doubling compared to the previous year. However, despite these achievements, Lavazza remains far from its target. Amid intense market competition, particularly in the context of coffee price wars, Lavazza must enhance its market presence through product innovation, marketing, customer experience, and value for money.

Yum China’s 2024 financial report highlighted strong progress for its emerging brands, including Lavazza. Acting CFO Ding Xiao noted that Lavazza’s retail business saw sales growth exceeding 30% and achieved profitability in 2024. Yum China remains optimistic about Lavazza’s potential, particularly with advancements in operational efficiency and reduced capital expenditure for new stores.

Meanwhile, Lavazza faces stiff competition from KFC’s rapidly growing K Coffee brand. K Coffee expanded from approximately 50 stores in 2023 to 700 in 2024, with plans to reach 1,300 by 2025. In 2024, KFC sold 250 million cups of K Coffee, a 30% increase. This rapid growth poses a challenge for Lavazza.

Under Chen Qi’s leadership, Lavazza is poised to leverage her expertise in brand marketing and digital transformation to boost its competitiveness in China. With Yum China’s support and Chen’s professional background, Lavazza is well-positioned for growth. However, in the face of fierce competition, Lavazza must continue to innovate in products, marketing, and customer experience to achieve its long-term goals in the Chinese market.

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