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.