The future of Mondelez’s beverage systems

Mondelez International have come out and stated that offering a large amount of hot and cold beverage will be central to their future growth strategies within Europe, despite merging with and incorporating D.E Master Blenders’ portfolio.

“We already have over 90 drinks and we believe there is a market for more. Watch this space,” Roland Weening, the coffee president of Mondelez Europe, said to Reuters.

“To have a multi-beverage system, as we have with Tassimo, that is able to do different drinks – hot, cold etc. – is where I think in the future the game will be,” he added.

With the merger between the two companies, Mondelez’s signature drink unit could face some competition from their new bedfellows of D.E Master Blenders who have their own system called the Senseo which sells capsules which are Nespresso compatible.

Given that the single-serve market is worth, according to Euromonitor International, almost $11 billion, the versatility of the Senseo could stand it in good stead.

“I’m not speculating on any of the potential things we might do in the future, but of course it is a growing market with a lot of opportunities…so we clearly want to continue to take advantage of all [the] opportunities out there,” Weening added.

One of those advantages, from an internal viewpoint, is the different price points of the two machines. The Tassimo is pushed towards a more expensive market sector whilst the Senseo’s products are, generally, cheaper.

However Weening is bullish on the viability of dual hot and cold drinks machines, but appears to be wary of pursuing the carbonated soft drinks market – an area that rival Keurig Green Mountain, along with Coca-Cola, is actively trying to court.

But, as he noted: “Who knows what the future may bring?”

photo: John Karakatsanis, Creative Commons