Historic Bialetti Sold To Chinese Investors NUO Capital

Luxembourg-registered and Milan Based NUO Capital will pay €53m for 78.6% of its shares in the deal expected to close by the end of June.

Bialetti has long been an Italian brand with an amazing reputation that makes products that Italians love. You can’t go anywhere in Italy without seeing their products, where they are in stores, B&Bs, popular art and even antique shops. Their stovetop espresso makers have long been the standard in Italy for decades.

With this backdrop, imagine the shock felt throughout Italy when it was announced that the company was sold to a Chinese investment firm, NUO Capital. No longer would this brand and these products be considered “Italian” and instead they will be lumped together with the long line of Chinese knock-offs in the stovetop espresso maker space.

Who Bought Bialetti?

NUO Capital is a Luxembourg-registered investment firm founded by Stephen Cheng, a member of one of Hong Kong’s wealthiest families. The firm focuses on long-term investments in Italian medium-sized enterprises, particularly those specializing in high-end consumer goods.

There is another link in its relationship with Italy and their products. NUO is an entrepreneurial partnership created by Exor and The World-Wide Investment Company Limited (“WWICL”), Hong Kong’s oldest family office, to invest in and support the global development of medium-sized Italian companies specialising in high-end consumer goods.

Exor is noteworthy for its origins, which trace back to the end of the 19th century, when Giovanni Agnelli founded FIAT. He led the company over the decades by innovating, expanding internationally and investing in new industries. By the end of the 20th century the holding company IFINT acquired Exor Group and extended its reach globally with investments in Asia.

How Much Debt Is Bialetti In?

According to the Wall Street Journal, by the end 2024, Bialetti Industries was more than $130M in debt. The main reason for this debt has been a long period of declining sales brought on by the popularity of single-serving capsule systems, like Nespresso, Krups and in the US, Keurig.

Younger people have driven the meteoric rise of coffee capsule systems, which saw a 63% profit surge last year. These single serve capsule machines, led by giants like Nespresso, Krups and Lavazza, offer convenience and variety. They are, however, criticized for the amount of non-recycleable waste created per cup of coffee.

While I might disagree with the benefit of variety, which resonates with younger consumers. There is a speed and simplicity to the time-consuming ritual of brewing with a moka pot, which for many young people has lost its allure.

Are Bialetti Coffee Makers Made In China?

Sadly, the answer is No. Bialetti Industries still has a factory in Italy where their coffee capsules are produced. For the coffee makers themselves, however, Bialetti has factories in Romania and China where certain parts of the coffee makers are produced. You can notice when you buy a new Moka pot that some pieces are stamped with “Made In Italy”, but the entire product isn’t.

The factories in China and Romania also produce non-moka products such as electric coffee makers and cookware, in addition to the individual components not stamped with “Made In Italy”.

Bialetti Sold - Probably no longer made in Italy

How Many Moka Pots Have Been Sold?

This is a pretty good question, because if you look around you will find a variety of answers that range from 3.5 million units per year to 300 million units in its history. For example:

According to Sprudge: “With an estimated 200 million sold since its invention, most Italian homes, around 70%, have at least one Moka pot hanging about.”
According to The Sunday Baker: “More than 300 million Bialetti Moka Expresses have been sold since its launch and it has become a design icon.”
Finally, according to Fortune: “According to company data, Bialetti sold around 3.5 million units a year between 2015 and 2017, slowly rising to 4 million in 2020”

What Does “Made In Italy” Mean?

More recently the “Made In Italy” label has been used more closely with Italian exports to not only promote Italian goods, but to differentiate them from cheap knockoff products that we have seen take over the shelves for years. The Italian government and the Chamber of Commerce work together to promote the “Made In Italy” moniker to promote Italian products and culture worldwide.

According to the Italian Trade Agency and the Ministry of Foreign Affairs and International Cooperation:

“When products and services are ‘Made in Italy’, they adhere to the highest standards of quality and excellence. It is therefore important for both producers and consumers to adopt measures to protect original goods from counterfeiting. But how can you be certain that the product comes from a reliable origin? It’s simple: follow the advice of experts!”
The Italian Trade Agency and the Ministry of Foreign Affairs and International Cooperation

An Italian product so ubiquitous and popular in Italy to be sold to a Chinese firm with the likely relocation of the remaining production to China is a blow to “Made In Italy”. There are , however, other great Italian brands that will continue to proudly carry the flag, like:

Cars: Ferrari, Lamborghini, Alfa Romeo and Fiat
Fashion: Armani, Fendi, Gucci and Prada
Food: Barilla, Ferrero, De Cecco, Perugina and Campari
Home Goods: Alessi, De’Longhi and Smeg

Who Is NOU Capital?

NUO Capital is a Hong Kong based investment firm that maintains a wide portfolio of Italian brands. NUO Capital’s portfolio includes several well-known Italian brands:

Slowear: A Venetian fashion group known for its “smart casual” clothing brands, including Incotex, Zanone, Montedoro, and Glanshirt.
Ludovico Martelli: An Italian company specializing in personal care and beauty products, known for its storied brands such as Proraso, Marvis, and Valobra.
Venchi: A historic Italian chocolatier and gelato maker, bringing authentic Italian flavors to global markets.
Montura: A leading brand in active-wear and technical apparel, designed for outdoor enthusiasts.
Andriani: A specialist in the production of high-quality, naturally gluten-free products, leading the way in healthy food innovation with its Felicia brand.
Subdued: A popular teenage womenswear brand headquartered in Rome, operating 85 stores with significant online growth.

Through these strategic investments, NUO Capital claims that it will continue to support the growth and internationalization of Italian excellence, bringing tradition forward with new value creation and innovation. I guess we’ll see.