Mondelez Spins Off Coffee Brands

Snack food giant Mondelez announced plans to spin off its coffee brands, which will combine with the labels owned by D.E Master Blenders 1753 B.V. in a new joint venture.

Snack food giant Mondelez announced plans to spin off its coffee brands, which will combine with the labels owned by D.E Master Blenders 1753 B.V. in a new joint venture.

The new company, called Jacobs Douwe Egberts, will have annual revenues of more than 5 billion euros and will be the world's leading company focused entirely on coffee.

JDE will be headquartered in the Netherlands and hold market-leading positions in 18 nations; its portfolio will include coffee brands such as Gevalia, Tassimo and Moccona.


The transaction means that Mondelez — the owner of dozens of brands including Oreo cookies, Ritz crackers and Cadbury chocolate — will derive about 85 percent of its net revenues from biscuits, candy and gum.

The New Jersey-based company received 3.8 billion euros in cash and a 44 percent stake in JDE. Acorn Holdings B.V., which owns D.E Master Blenders 1753, holds the remaining 56 percent stake.

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