- Mondelez International, Inc. and D.E Master Blenders 1753 BV have completed the merger of their coffee businesses, which has now created Jacobs Douwe Egberts (JDE), the global leader in pure-play coffee with more than €5 billion (approximately $5.55 billion) in annual revenues.
- "Upon closing, Mondelēz International received cash of approximately €3.8 billion and a 44 percent interest in the new joint venture, subject to standard post-close adjustments," according to a news release. D.E Master Blenders 1753's owner, Acorn Holdings BV, has a 56% share in JDE.
- Based in the Netherlands, JDE will be a market leader in 18 countries globally and will have a strong foothold in emerging markets.
This gives Mondelez more of an opportunity to focus on its snacks business while still being able to profit from the coffee segment with its 44% stake in JDE. After the JDE deal, approximately 85% of Mondelez's net revenues now come from biscuits, chocolate, gum, and candy.
Having such a heavily snack-branded portfolio may position Mondelez well in terms of the way consumers are spending their money these days. A recent white paper on the snacking industry reported that the industry is expected to grow to $47.5 billion by 2015, up from $34.2 billion a decade ago. Also, 37% of millennials say they will snack more in the future, and with Mondelez owning so many brands of millennials' childhoods, such as Oreo, Chips Ahoy, and Ritz, that demographic could be a boon for the company's snack brands going forward.