Mondelez to Enter Dutch, Australia Coffee Markets

Mondelez International Inc. (MDLZ), the world’s second-biggest coffee maker, will expand into the Netherlands and Australia and bring its Nespresso-compatible capsules into Spain this month in an attempt to capture more of the global $80 billion coffee market.

Mondelez, based in Deerfield, Illinois, will start selling a range of roast and ground, whole bean and single-serve coffee capsules under the Velours Noir brand in Dutch retailer Albert Heijn BV on Oct. 7, the company said in a statement today. It will also enter the Australia market this month for the first time and add its Carte Noire Nespresso-compatible espresso capsules in Spain, where it already has other coffee products.

Mondelez sells Carte Noire single-serve capsules in Germany, France, Austria and Switzerland, posing a challenge to Nestle SA (NESN), the world’s biggest coffee maker which owns Nespresso coffee brewers.

The Netherlands, which ranks second globally in coffee consumption per head, “is a big coffee drinking nation so the market value is sizable,” Roland Weening, president of Mondelez’s coffee business, said in an interview. He declined to say how much its single-serve capsules would cost at Albert Heijn, the retailer owned by Royal Ahold NV. (AH)

The Dutch coffee market grew 12 percent to $1.14 billion last year, according to data tracker Euromonitor. D.E Master Blenders 1753 NV (DE), which agreed to be bought by Joh. A. Benckiser in April, is the nation’s biggest coffee maker with over 50 percent of the market, Euromonitor has said. Master Blenders also sells Nespresso-compatible capsules under the L’OR brand.

Mondelez, which also makes snacks such as Oreo cookies and Ritz crackers, was created in a separation from Kraft Foods Inc. last year.

To contact the reporter on this story: Matthew Boyle in London at mboyle20@bloomberg.net

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net

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