Is the Fourth Wave Leaving Some Coffee Machine Manufacturers Behind? – CoffeeTalk

The coffee industry showed resilience amid tariffs and poor harvests in 2025, despite rising prices not deterring consumer demand. Evoca, a coffee machine manufacturer based in Bergamo, Italy, faced significant challenges during this period. The company, owned by private equity firm Lone Star, specializes in “out-of-home” machines commonly used in cafes and hotels. However, it reported a 16% year-over-year revenue decline, leading Fitch to downgrade its credit rating to B-, placing it into junk status. Evoca’s debt-to-EBITDA ratio stood at 8.2x, exceeding Fitch’s forecasts. The ratings agency cited weak customer demand and anticipated structural challenges from key vending accounts as barriers to a near-term recovery.

Analysts from Lucror Analytics noted that although Evoca’s liquidity is stable, it appears to be losing market share to competitors like De’Longhi Group, which also offers home coffee makers. Despite Evoca’s struggles, the coffee machine sector is projected to expand significantly, with market research predicting it will grow to an $11 billion industry by 2035.

Shifting consumer preferences pose additional threats to Evoca’s business model. Mintel’s recent report indicates that coffee is currently in its “Fourth Wave,” characterized by a preference for specialty drinks, youth-driven trends, and a rise in DIY coffee preparation influenced by online platforms. As social media spreads new brewing methods, such as the use of Moka pots, traditional out-of-home machines may face declining relevance. The industry must remain adaptive to emerging trends and the increasing appeal of non-coffee beverages, like matcha and ube lattes, in cafes globally.

In parallel to these developments, other sectors are experiencing significant financial changes. For instance, Lazard has made a bid to become Venezuela’s financial advisor amid debt restructuring discussions, aiming to handle one of the largest sovereign debt restructurings for a reduced fee compared to Centerview Partners. Meanwhile, IG4 Capital is negotiating to acquire a majority stake in Raizen through a proposed restructuring plan converting 45% of its debt into equity. Kem One, a French chemicals firm, has also reached a restructuring deal with creditors, promising to raise funds to stabilize operations while dealing with significant debt challenges.

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