Giuseppe Lavazza, vice president of the coffee multinational
–
Inflation, skyrocketing commodity prices, logistical difficulties which translated into demanding costs: “300 million more for 2022, equal to the entire margin of 2021 but we have continued to invest at the rate of 80 million a year”. Market instability: «AWe redid the budget for this year six times “. Giuseppe Lavazza, vice president of the multinational coffee, which is a symbol of Italy in the world, joins the appeal of those who ask that the Prime Minister Mario Draghi remain at the helm of the country. «Never as in this moment of strong instability on the markets, it is necessary for him to complete his tasks. In an uncertain context, we need a safe shore in the country ».
–
In a moment however – he says Lavazza – in which it is no longer possible to postpone a labor reform, with the cutting of the tax wedge, «A key step to make work more dynamic and competitive. Vital above all to convince young people to stay, to work in our companies – which is one of the most difficult aspects now -, and for us entrepreneurs it is necessary to hand over our activities to future generations. Social promotion levers are needed to protect the work of tomorrow“. This is also why Draghi must remain.
–
Lavazza recognizes itself in the so-called “party of the GDP” as an exponent of the business world that invests in the country and brings made in Italy to the world. The coffee group collects abroad 70% of its 2.3 billion turnover. This is 33 billion cups of coffee consumed every year, about 628 per minute. The entrepreneur recalls the meeting with the Prime Minister who in April, on a visit to Turin, “came to our new headquarters in the Nuvola, part of a large project for the regeneration of a district on the northern belt of the city, also problematic since social point of view “.
–
What words of Draghi have impressed you?
–
«He reiterated the role of politicians and institutions that must also be of service to entrepreneurs, those who are good and courageous especially in the hardest moments, who can best express their talent together with their collaborators. Politics thinks it is an engine of development but in reality it is often an obstacle. Let’s not forget that in Italy one of the risks with the greatest impact is lack of competitiveness and Draghi has been a guarantee as head of government. He surprised us in the speed of execution – rare in the public sector – and in the strong discipline in the method of government ».
–
Energy, inflation, raw materials. What are you most worried about?
–
“Increases in energy affect us relatively. But it is the price of coffee that goes up, an increase that can be quantified in the hundreds of millions. And it is not just a question of raw material prices, doubled in one year, there is also logistics. There were no containers to transport coffee in 2021, a real emergency. So we cleaned and filled the holds of the tankers to import part of the approximately 4.5 million bags of coffee we buy in a year from twenty countries. The entrepreneur must have courage but political stability is fundamental ».
–
How long can companies withstand shocks?
–
“In 2021 we absorbed a large part of the cost increases, with good management, and then we compressed the margins. We have done some price increases recently, but with a lot of judgment. We are well trained to compete, we have learned this growing up on international markets. 2021 was a very good year, closed with a plus 11% which allowed us to set aside resources, as we always do, and to continue investing, which we will do again this year. We never back down, we have 127 years of history but the agility of children, we take a few hits but we are flexible and we can run ».
–
The ECB will decide on a rate hike on Thursday …
–
«The Fed has already increased there and the effect has been seen in Europe, with the parity between the dollar and the euro, perhaps destined to go even below that level. And it will be inevitable that the most indebted countries like Italy suffer more. But if nothing is done, purchasing power will be reduced. Then there is inflation, an unknown about consumption. The risk is to end up in the spiral of recession. There is no more time to waste, we need to modernize the backbone of our country. Only under these conditions can an entrepreneur accept risk, be competitive, not weigh on public accounts and push GDP growth ».
–
Subscribe to the newsletter “Whatever it Takes” by Federico Fubini. Strong data, facts and opinions: the challenges of the week for the economy and markets in an unstable world. Every Monday in your inbox.
And don’t forget the newsletters The Economy Opinions “
e “The Economy 6pm”.
–
© REPRODUCTION RESERVED
–
