Mondelez International to Dispose of Interest in Japanese Coffee Joint Venture
In line with its ongoing efforts to further focus its portfolio on snacking products, Mondelez International has agreed to sell its 50% interest in Ajinomoto General Foods to its joint venture partner, Ajinomoto Co, for Yen27 billion ($226 million). AGF manufactures and sells instant, ground and liquid coffee products as well as other beverages in Japan under brands mainly licensed by Mondelez International, including Blendy and Maxim.
In May 2014, Mondelez International announced its intention to combine its coffee business with D.E Master Blenders 1753 to create the world’s leading pure-play coffee company, to be named Jacobs Douwe Egberts (JDE). As part of this, Mondelez International’s Japan joint-venture partner, Ajinomoto, was invited to join JDE. During these discussions, Ajinomoto expressed a strong interest in acquiring Mondelez International’s shares in AGF.
In 2013, AGF generated more than Yen100 billion in net revenue. It has 700 full-time employees and two factories in Gunma and Suzuka in Japan.
