Giuseppe Lavazza, Vice President of Multinational Coffee
Inflation, skyrocketing commodity prices, logistical difficulties Which translated into required costs: “An additional 300 million for 2022, which is equivalent to the entire 2021 margin, but we continued to invest at the rate of 80 million annually.” market instability: “to meWe have re-budgeted this year six times.”. Giuseppe Lavazza, Vice President of the multinational coffee company, which is a symbol of Italy in the world, joins the call of those who demand that Prime Minister Mario Draghi remain at the head of the country. “It is not necessary, as at this moment of strong instability in the markets, to complete its tasks. In an uncertain context, we need a safe beach in the country.”
In a moment, however – he says Lavazza – Where labor reform can no longer be postponed, with the tax peg lowered“An essential step in making the business more dynamic and competitive. It is above all important to persuade young people to stay and work in our companies – which is one of the most difficult aspects now – and it is necessary for us entrepreneurs to pass on our activities to future generations. Social reinforcement levers are needed to protect tomorrow’s workIt is also why Draghi should stay.
Lavazza gets to know herself The so-called “GDP Party” As one of the pioneers in the business world that invests in the country and brings Made Italy to the world. The The coffee group gathers outside 70% of its turnover of 2.3 billion. That’s 33 billion cups of coffee consumed each year, about 628 per minute. The businessman recalls meeting with the Prime Minister who in April, on a visit to Turin, “came to our new headquarters in Novola, which is part of a large project to renovate an area on the northern belt of the city, which is also problematic from a social point of view”.
What are Draghi’s words that impressed you?
He stressed the role of politicians and institutions that should be at the service of entrepreneurs, those who are good and brave especially in the most difficult moments, and who can better express their talents with their collaborators. Politics is thought of as a driver of development but in reality it is often an obstacle. Let us not forget that one of the risks with the greatest impact in Italy is the lack of competitiveness and Draghi was a guarantee as head of government. He surprised us in the speed of execution – a rarity in the public sector – and in the extreme discipline of the style of government.”
Energy, inflation and raw materials. What is the most thing that worries you?
“Increases in energy have a relatively low impact on us. But it is the price of coffee that is going up, a rise that can be measured in the hundreds of millions. And it is not just about the prices of raw materials, which have doubled in one year, there is also the logistics. There were no containers to transport coffee in a year 2021, which is a real emergency. So we cleaned and filled the tankers’ tanks to import part of the about 4.5 million coffee bags we buy in one year from twenty countries. The entrepreneur has to be brave but political stability is key.”
How long can companies withstand shocks?
“In 2021 we absorbed a large portion of the cost increases, with good management, and then we squeezed margins. We’ve done some price increases recently, but with a lot of judgment. We are well trained to compete, we’ve learned that growth in international markets. 2021 is a very good year, closing with 11%, which allowed us to allocate resources, as we always do, and keep investing, which we will do again this year. We never back down, we have 127 years of history but kid agility, we receive Some hits but we are flexible and we can run.”
The European Central Bank will decide to raise interest rates on Thursday…
“The Fed has already increased there, the effect has been observed in Europe, with parity between the dollar and the euro, and it may have been set to fall even below this level. And it will be inevitable that more indebted countries such as Italy will suffer more. But if nothing is done, purchasing power will decrease. Then there is inflation, which is unknown about consumption. The risk is that you end up in a downturn. There is no more time to waste, we need to modernize the backbone of our country. Only under these conditions can a businessman accept risk, be competitive, not burden public accounts and drive GDP growth ».
Subscribe to our newsletter Whatever It Takes, by Federico Fobini. Powerful Data, Facts, and Opinions: The Week’s Challenges for the Economy and Markets in an Unstable World. Every Monday in your inbox.
And don’t forget the newsletters economics view”
And the “Economy 6 pm”.
© Reproduction reserved
“Infuriatingly humble social media buff. Twitter advocate. Writer. Internet nerd.”
The appliances (not just air conditioners) that will have the biggest impact on your bill this summer are the solutions
Tomorrow’s BOT Auction June 9, 2023: Expected Return of up to 3.6% for 12 months
Borsa Italiana, hearing commentary of 8 June 2023