Manufacturing News

Mondelez International, D.E Master Blenders 1753 to merge coffee businesses

Companies announce intention to launch new company Jacobs Douwe Egberts with revenues projected at more than $7 billion.

Mondelez International, D.E. Master Blenders 1753 to merge coffee businessesOn May 7, snacking and beverage provider Mondelez International and D.E Master Blenders 1753, a leading coffee and tea company, announced their intention to combine and create a new coffee business called Jacobs Douwe Egberts.

According to Mondelez, whose brands include Gevalia and Carte Noire, the new company will be based in the Netherlands and hold leading market positions in more than two dozen countries. D.E Master Blenders 1753 includes brands such as Douwe Egberts and L’OR.

“We’re delighted with this transaction and the substantial value we expect to create for our shareholders,” says Irene Rosenfeld, chairman and CEO of Mondelez International. “By retaining a significant stake in the combined company, we’ll continue to benefit from the future growth of the coffee category and share in the synergies and tremendous upside of this leading, one-of-a-kind coffee company.”

With each company taking in more than $3 billion annually, the new pure-play company is projected to have revenues of more than $7 billion.

“Jacobs Douwe Egberts will leverage the rich histories of both companies, combining our complementary geographic footprints, portfolios of iconic brands and innovative technologies to offer more people around the world more access to high-quality coffee and allowing the company to capitalize on the significant growth opportunities in a highly attractive market,” says Pierre Laubies, CEO of D.E Master Blenders 1753.

Laubies is the prospective CEO of the new combined company.

Through the agreement, Acorn Holdings B.V., owner of D.E Master Blenders 1753, made an offer to receive Mondelez coffee business in France.

Transactions remain subject to approval.

According to the companies, Mondelez will receive $5 billion in cash and 49 percent equity interest in the new company upon completion of the transaction, which is expected to be in 2015.
The transactions remain subject to approval.

Did you enjoy this article? Click here to subscribe to Food Engineering Magazine.

Recent Articles by Jeremy Gerrard

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Food Engineering's Food Automation & Manufacturing Conference and Expo 2015

Images from Food Engineering's Food Automation & Manufacturing Conference and Expo in Clearwater Beach, Florida, April 12-15, 2015. The event brought food and beverage processors and suppliers together to gain valuable information on the latest trends and technologies in manufacturing, automation, sustainability and food safety.

Podcasts

Burns & McDonnell project manager RJ Hope and senior project engineer Justin Hamilton discuss the distinctions between Food Safety and Food Defense as well as the implications for food manufacturers of the Food Safety Modernization Act.
More Podcasts

Food Engineering

Food Engineering May 2015 Cover

2015 May

The May 2015 issue of Food Engineering explores effective tools for hitting manufacturing targets. Also, read how processors are looking for faster ways to detect harmful pathogens in food and beverages without sacrificing accuracy or reliability.

Table Of Contents Subscribe

Plant Facility/Site Issues

What issue about your current plant facility/site keeps you up the most at night?
View Results Poll Archive

THE FOOD ENGINEERING STORE

Food-Authentication-Flyer-(.gif
Food Authentication Using Bioorganic Molecules

This text provides critical tools and data needed to augment routine food analysis and enhance food safety by aiding in the detection of counterfeit, and potentially deleterious, foods.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

FE recent tweets

facebook_40.pngtwitter_40px.pngyoutube_40px.png linkedin_40px.pngGoogle +

Food Master

Food Engineering Food Master 2015Food Master 2015 is now available!

Where the buying process begins in the food and beverage manufacturing market. 

Visit www.foodmaster.com to learn more.