Mondelez raises stakes in coffee battle

The capsules will be sold under the Jacobs and Carte Noire brands in Germany, France, Austria and Switzerland in the second half of the year – the biggest challenge yet for the £2.8bn Nespresso brand that has sued many copycats.

“We see a very healthy coffee market where people like to pay more for a cup of coffee and are becoming increasingly demanding on the quality and variety of their coffee,” Roland Weening, Mondelez vice president for coffee marketing, said. “We’ll see very strong growth coming out of this particular launch.”

Mr Weening said that sales of portioned coffee pods have been growing by close to 20 per cent in western Europe in recent years and could represent a third of the coffee market by 2016.

Nespresso has been Nestle’s fastest-growing brand in recent years, with its recipe for success based on relatively cheap machines and costly coffee capsules, available only online or in exclusive boutiques, prompting rivals to launch cheaper copycat pods through traditional retailers.

Nestle, which has confectionery sites in York and Halifax, has sued rivals including D.E. Master Blenders, Ethical Coffee Co, Migros and Denner, but so far it has failed to obtain a definite sales ban on their products.

“Competition is nothing new for Nespresso and today we compete against approximately 100 competitors worldwide, including 50 that claim compatibility with the Nespresso system,” a Nespresso spokeswoman said.

Mondelez has a factory in Sheffield, which manufactures brands including Bassett’s and Maynards.