Green Light For Creation of Leading Global Coffee Business
D.E Master Blenders 1753 and Mondelēz International have received conditional approval from the European Commission to combine their respective coffee businesses and create the world’s leading pure-play coffee company – JACOBS DOUWE EGBERTS (JDE). The European Commission’s approval follows JDE’s commitment to divest the Carte Noire brand throughout the European Economic Area, the Merrildbrand in Denmark and the Baltics, and licensing of the Senseo brand to a third party in Austria.
JDE will have annual revenues of more than €5 billion and hold the number one or number two position in over 18 countries across Europe, Latin America and Australia. Its portfolio will comprise some of the most well-known coffee brands around the world – ‘power brands’ including Jacobs, Tassimo, Moccona, Senseo and L’Or, along with leading local brands such as Douwe Egberts, Kenco, Pilao and Gevalia.
“Through our iconic brands, rich histories and leading technologies, we intend to give coffee drinkers what they deserve: greater choice and access to some of the best coffee brands in the world,” says Pierre Laubies, CEO of JACOBS DOUWE EGBERTS.
“The combination of our coffee business with that of D.E Master Blenders 1753 creates a new global leader in the coffee category with a fantastic portfolio of technology platforms and global and local brands,” says Irene Rosenfeld, Chairman and CEO of Mondelēz International. “The partnership will allow us to continue to participate in the growth of the coffee category, while enabling us to focus our resources on our core snacks categories of chocolate, biscuits, gum and candy.”
The transaction is anticipated to close in the course of 2015, subject to remaining closing conditions, at which point Mondelēz International will receive cash of approximately €4 billion and a 49 percent equity interest in JACOBS DOUWE EGBERTS. Acorn Holdings, owner of D.E Master Blenders 1753, will hold a majority share in JDE and will have a majority of the seats on the board, which will be chaired by current DEMB Chairman, Bart Becht.
