Mondelēz International is broadening its presence in the single-serve coffee market with the launch of coffee pods under its Jacobs and Carte Noire brands that are compatible with the single-serving Nespresso machines sold by rival Nestle S.A. The new coffee pods will launch with the Jacobs and Carte Noire brands in Austria, France, Germany and Switzerland in the second half of 2013.
Mondelēz already has its own single-serve beverage machine, Tassimo, which was launched in 2004 and now is one of the fastest growing single-serve systems in Europe. The company said its goal is to create a billion dollar global Tassimo brand, but the launch of Carte Noire and Jacobs compatible pods is an important part of Mondelēz’s coffee strategy and marks another significant investment in Europe’s $2.8 billion single-serve category, the company said.
“Our new range of compatible capsules represents increased competition in the fast-growing single-serve coffee sector and is a significant commercial opportunity for Mondelēz International,” said Roland Weening, global vice-president of strategy, marketing and innovation, coffee. “With the launch of these capsules and our stepped-up activities and investment in Tassimo, we will cement our position as the fastest growing single-serve business and the world’s second largest coffee company.”
Mr. Weening added, “We will continue to give consumers great-tasting and sustainably-sourced products across Europe at a price that is competitive. Jacobs and Carte Noire are among Europe’s favorite coffees, and our capsules will provide consumers with the freedom to prepare the coffee they love in the manner they like.”
Mondelēz International’s range of coffee products includes roast and ground, single-serve and instant coffee under brands such as Jacobs, Carte Noire, Tassimo and Kenco. Carte Noire is a top-selling premium coffee brand in France along with a number of markets in Central and Eastern Europe, and it is building a premium position in other markets, according to Mondelēz. Meanwhile, Jacobs is one of Mondelēz International’s billion dollar brands and traces its premium coffee origins to 1895 in Germany.
Mondelēz International is not the first company to make coffee capsules compatible with the Nespresso machine. Dutch company Douwe Egberts sells products that fit the machine, as does Switzerland’s Ethical Coffee Co. and the U.K.’s Dualit Ltd. Legal efforts by Nestle to prevent its competitors from making products compatible with its Nespresso system so far have been unsuccessful.
