Culinary Brands (CB), backed by private equity firm Everstone Group, has announced an exclusive license partnership with Italian coffee company Lavazza S.p.A. in India. This is the second such exclusive partnership by Culinary Brands in the foods and beverages space, after taking exclusive master franchise rights for sandwich and salad chain Subway in the country.

Culinary Brands has additionally acquired a significant majority stake in the Fresh & Honest (F&H) coffee brand from Lavazza Group.

ET reported about the development in its December 20 edition.

The Italian Luigi Lavazza S.p.A. group had exited the cafe business in India in 2014 when it sold off its stake in Barista Coffee to local company Carnation Hospitality. Lavazza has since then focused on its Fresh & Honest coffee brewing machine business.

Dev Amritesh, chief executive at Culinary Brands said in a statement: “F&H owns the affordable Fresh and Honest coffee brand and has the exclusive rights for the premium Lavazza brand. We look forward to making Lavazza and Fresh and Honest the beverage of choice for Indians through distribution and enhanced presence across channels and consumption opportunities.” Amritesh joined Culinary Brands earlier this year from contract food services company Compass Group, where he was managing director.

“Lavazza Group has been operating in India for the last 15 years. We believe that such a partnership will ensure that the Lavazza brand will have an even stronger positioning in India,” said Antonio Baravalle, CEO of Lavazza Group, said.

The deal was transacted with BDA Partners, Desai & Diwanji and Deloitte India. It is being structured to include Lavazza’s coffee vending machine business Fresh & Honest to begin with, and subsequently evolve to Culinary Brands setting up cafes under the Lavazza brand in India. Independent directors on the board of Culinary Brands include Jaspal Sabharwal, former partner at Everstone Capital, and food columnist and journalist Vir Sanghvi, according to information on the website of the corporate affairs ministry.The cafe business is showing high traction in the country amid a resurgence of dining-in as consumers return to malls and entertainment complexes, with newer entrants like Reliance-backed Pret a Manger, McDonald’s-owned McCafe and Canadian brand Tim Hortons setting up stores.

India is among the world’s fastest growing markets for cafe retail chains and is expected to be a Rs 4,500-crore market by 2023, research firm Euromonitor said in a report. The category is led by Tata Group-operated Starbucks, the homegrown Cafe Coffee Day, Barista, and Costa Coffee operated by Devyani International.

In addition to Subway, Everstone’s existing consumer-facing portfolio in India includes the quick-service brand, Burger King. Everstone, which also operates BK Coffee under the Burger King franchise in India, could draw synergies by selling Lavazza coffee at the cafes.

Lavazza’s coffee business in India also includes operating three training centres, which train baristas, or specialist coffee makers, caterers and sales force teams. Worldwide, there are over 50 such training centres.