Mondelez International and D.E. Master Blenders may sell two French coffee brands as they get ready to merge their coffee business. The companies are considering the sale of L’Or, owned by D.E. Master Blenders, and Grand Mere, owned by Mondelez, sources tell Reuters.
Deerfield-based Mondelez and D.E. Master Blenders announced in May they would combine their coffee businesses into a new company based in the Netherlands. The new company will have annual revenue of about $7 billion and will be called Jacobs Douwe Egberts.
The deal lets Mondelez to further concentrate on its snack foods division and cost cutting. Mondelez will receive about $5 billion when the deal is completed and will have a 49 percent stake in the new company.
The new coffee producer will sell Gevalia, Tassimo and Jacobs, which are Mondelez brands, and Senseo and Douwe Egberts from D.E. Master Blenders, formerly the Sara Lee coffee business.
