February 18, 2022 — American snacking giant Mondelēz has invested $23 million in its Oreo cookie production line in Cikarang, Indonesia. The advanced production line is energy and water efficient and has a low carbon footprint.
The expanded Cikarang factory became one of Mondelēz International’s largest biscuit factories in the world. This scale-up venture increases the company’s production capacity for export demand in 35 countries in Southeast Asia and the wider Asia-Pacific and Middle East region.
“Cikarang’s expansion is one of the fastest growing investment projects of this scale globally. What made it even more remarkable was how the team overcame the challenges of COVID to bring the additional capacity online in record time,” says Glenn Caton, President of Southeast Asia. East, Mondelēz International.
The government supports Oreo
Located 50 km from the center of Jakarta, the Cikarang factory produces Oreo cookies, including mini Oreo and Ritz. The inauguration of the production line coincides with the 110 anniversary of Oreo.
The Ministry of Investment, the Ministry of Industry and the Government of the Republic of Indonesia expressed their support for the investment and expansion of the Oreo brand production line.
The Indonesian market is one of the top five global Oreo markets, positioned to help Mondelēz International further grow its global snacks portfolio.
“Our investment reflects strong year-over-year growth for Oreo cookies in Indonesia and across Southeast Asia,” Caton says.
The Oreo cookies produced in the renovated factory will be more environmentally friendly than before. This is what modern consumers in the region expect from snack producers, says Mondelēz.
“As our 2021 State of Snacking report confirmed, consumers are increasingly tying their purchasing decisions to their values. They want to buy snacks from companies that offset their environmental footprint. And our new Oreo production line in Cikarang supports that,” says Zaenal Abidin, Plant Manager Cikarang, Mondelēz Indonesia.
Achieve healthier snack businesses
As consumer tastes increasingly shift towards healthier foods, Mondelēz International continues to expand its snacks portfolio by acquiring the remainder of Hu (as in “Human”) Master Holdings, the parent company of Hu Products .
The fast-growing US company’s acquisition of the snack brand comes after Mondelēz made a minority investment in Hu in 2019.
The initial investment was made through Mondelēz’s SnackFutures venture capital initiative, a venture capital center that aims to uncover snacking growth opportunities within high-growth strategic priorities: -being and high-end products. e-commerce and conventional retail.
Edited by Inga de Jong
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