Mondelez Brews Coffee Ventures

The food company is planning to enter new coffee markets and expand its portfolio in Australia, Spain and the Netherlands.

October 07, 2013

ZURICH – The Associated Press reports that Mondelez International Inc. is planning to enter two new coffee markets, Australia and the Netherlands, and expand its offerings Spain, “perking up the battle” among a “crowded field of rivals.”

Mondelez's expansion in those three countries marks the latest battle lines in the increasingly competitive global coffee market, notes the AP, which has become attractive for food companies because coffee tends to be “relatively recession-resistant and offers high profit margins.”

Global competitors include Nestlé, Mondelez, Luigi Lavazza SpA, Green Mountain Coffee Roasters Inc. and Starbucks Corp. — all which are increasing their presence around the world, notes the AP.

"It's a very competitive market," Jonny Forsyth of Mintel. "The only way to grow is by taking sales off your competitors."

Mondelez’s growth strategy for coffee pits the company against Nestlé, which has “increasingly moved toward upmarket brands as instant coffee declines in popularity in developed markets,” notes the AP.

Australia, the Netherlands and Spain are among the “most promising markets for coffee, with combined sales expected to reach $2.9 billion this year,” according to Mintel. Mondelez told the AP that launching in these countries will the company increase sales, gain more market share and build Carte Noire, its premium coffee product, into a flagship brands.

Nestlé is the current market leader for coffee in Australia and Spain, and third for the Netherlands, according to Mintel.

Advertisement
Advertisement
Advertisement