Mondelēz International, Inc., Deerfield, Ill., and D.E Master Blenders 1753 B.V. , Amsterdam, have completed their move to combine their respective coffee businesses, including Mondelēz International's coffee portfolio in France, to create Jacobs Douwe Egberts (JDE), which will become the world's leading pure-play coffee company with annual revenues of more than $5.5 billion.
Mondelez received a 44 percent interest in the new joint venture upon closing of the deal and approximately $4.2 billion. Acorn Holdings B.V., which owns D.E. Master Blenders 1753, will have a 56-ercent share in JDE.
Mondelez reports that the new company will be headquartered in the Netherlands and have market-leading positions in 18 countries globally, along with a strong emerging market presence. JDE will own some of the world's leading coffee brands, such as Jacobs, Tassimo, Moccona, Senseo, L'OR, Douwe Egberts, Kenco, Pilão and Gevalia.
Following the transaction, Mondelēz says it will be even more focused on snacks, with approximately 85 percent of its net revenues stemming from biscuits, chocolate, gum and candy. But by retaining a major investment in JDE, Mondelēz will also continue to enjoy growth in the coffee market.