Tag Archives: keurig

Mondelez International to own percentage of Keurig Green Mountain

Instant Analysis: Mondelez International Now Owns 24% of Keurig Green Mountain

The global snack food giant owns a stake in the holding company that now owns the leading single-serve coffee company. Does it matter?

K Cups

IMAGE SOURCE: KEURIG GREEN MOUNTAIN.

What happened? 
Global snack food giant Mondelez International (NASDAQ:MDLZ) filed an SEC form 8-K on Monday disclosing that it exchanged a portion of its ownership in Jacobs Douwe Egberts (JDE) for a 24.24% stake in Maple Parent Holdings Corp., the newly formed entity that ownsKeurig Green Mountain. (JDE is the coffee joint venture formed last July when Mondelez and D.E. Master Blenders 1753 combined their respective coffee businesses.)

Mondelez’s transaction follows Keurig’s previously announced acquisition on March 3 by a subsidiary of Acorn Holdings, an investor group led by JAB Holding Co. Following the exchange, Mondelez’s share of ownership in JDE was reduced to 26.5%.

Mondelez is a world leader in biscuits, chocolate, gum, candy, and powdered beverages, with top brands such as Nabisco, Oreo, Cadbury, Trident, and Tang.

The Impact Meter

Does it matter?
This event is worth noting, but is currently not of significance to Mondelez’s business, whose stake in Keurig’s holding company accounts for a very small percentage of its overall business. Based on the size of Mondelez’s coffee business (just over 7% of its total revenue) when it transferred it into JDE for a 43.5% stake in that entity, we’re talking in the low- to mid-single-digit percentage.

This stake, however, could become meaningful in the future. Despite Keurig’s slowing revenue growth in more recent years, its K-Cups remain the fastest-growing segment in retail coffee, as growth in the traditional bagged category has generally been flat. If this growth continues or accelerates under the new ownership, Mondelez’s stake in Keurig’s holding company might become significant enough to make a difference in its earnings.

It remains to be seen if Keurig’s new ownership will affect J.M. Smucker (NYSE:SJM), which last year was awarded the enviable license from Keurig and Dunkin’ Donuts to sell Dunkin’ K-Cups in outlets where groceries are sold. I’d venture to guess nothing will change on this front for now as Smucker has produced strong sales of this product. Smucker also sells Folgers’ K-Cups.

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Green Mountain Coffee Unveils Original Coffeehouse Beverages

Green Mountain Coffee Unveils Original Coffeehouse Beverages

WATERBURY, Vt.–(BUSINESS WIRE)– Keurig Green Mountain, Inc., a personal beverage system company that has revolutionized the way consumers create and enjoy beverages, today announced the launch of Green Mountain Coffee® Coffeehouse, a new collection of beverages featuring café-inspired cappuccinos, lattes, and macchiatos. The specialty line of products draws upon the Green Mountain Coffee® heritage as a small-batch roaster and coffee shop combined with the ease and simplicity of the Keurig® hot brewing system.

The Green Mountain Coffee® Coffeehouse collection allows consumers to make a delicious, frothed café-style beverage at home. The two-step process is easy: simply empty the froth packet into a mug, brew the K-Cup® pod and enjoy! Coffeehouse two-step beverages are made with Fair Trade Certified™ coffee, sugar, skim milk, cream and sea salt and contain no artificial sweeteners, artificial flavors or preservatives. Coffeehouse is available in three irresistible flavors: smooth and flavorful Cappuccino, buttery and richSalted Caramel Macchiato and sweet and creamy Vanilla Latte.

“Green Mountain Coffee takes pride in its roots as a local Vermont roaster and coffee shop that created distinctively delicious coffee house beverages,” said Tom Ferguson, Senior Vice President, US Hot Beverages at Keurig Green Mountain, Inc. “With the new Green Mountain Coffee Coffeehouse collection, we drew on that longstanding coffee expertise and the innovation of Keurig simplicity to create the barista experience you love, at home, at the touch of a button.”

The Green Mountain Coffee® Coffeehouse collection joins the over 575 different beverages and 80+ brands in the Keurig Green Mountain family. For 35 years Green Mountain Coffee® has been a leader in specialty coffee, finding and roasting the highest quality coffee in the world while building strong, lasting relationships with the farmers who grow it.

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