Analysis: New coffee player a giant headache for Nestle

|About: Nestle S.A. ADR (NSRGY)|By:, SA News Editor

Nestle (NSRGY, NSRGF) faces an even larger challenge in the coffee business with Mondelez International (MDLZ) jumping in with D.E. Master Blenders to form a new formidable rival to the Swiss giant.

The company was already struggling with decelerating sales growth and copycat sellers in Europe.

Analysts call the emergence of Jacobs Douwe Egberts a "tectonic" shift in the coffee business. At first glance it looks like Nestle might be sitting on the fault line.