DE Master Blenders Seeks to Become No 2 Maker of Coffee, Tea

By Robert van den Oever

AMSTERDAM--DE Master Blenders 1753 has designs on becoming the world's No. 2 coffee-and-tea maker, Chairman Jan Bennink said Tuesday after the company was listed in Amsterdam.

DE is currently No. 3 in the sector with $4 billion in annual sales, behind Nestle SA (NESN.VX) with $12 billion and Kraft Foods Inc. (KFT) with $6 billion.

The company is focusing on organic growth in its existing markets, while bolt-on acquisitions in Eastern Europe, Asia and Latin America remain a possibility.

"There are lots of opportunities to differentiate and innovate with coffee tastes and propositions," Mr. Bennink said at the company's listing event.

DE was Tuesday listed on Euronext Amsterdam following a spinoff from U.S. company Sara Lee Corp. (SLE). Mr. Bennink prepared the split over 16 months, having been hired specifically for this task by Sara Lee.

"There is a lot of emotion involved for me," he said. "I have defined the strategy for this company."

Many observers believe DE was somewhat neglected under the ownership of Sara Lee, as the U.S. company focused its attention in other business areas. But growth initiatives from within the business were few and far between too.

"That definitely has to change. Now it's time to change the organization further to enhance growth," said Mr. Bennink.

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