Mondelēz expands Indonesian Oreo production line with US$23M investment
18 Feb 2022 --- US snacking giant Mondelēz has invested US$23 million in its Oreo biscuit production line in Cikarang, Indonesia. The advanced production line is energy and water-efficient and sports a low carbon emissions footprint.
The expanded Cikarang factory has become one of Mondelēz International’s largest biscuit factories globally. This scale-up endeavor increases the company’s production capacity for export demand in 35 countries across Southeast Asia and the broader Asia Pacific and Middle East region.
“The Cikarang expansion is one of the fastest start-to-finish capital projects of this scale globally. What made it even more remarkable is how the team navigated through the COVID challenges to bring the additional capacity online in record time,” says Glenn Caton, president Southeast Asia, Mondelēz International.
Government backing for Oreo
Located 50km from central Jakarta, the Cikarang factory produces Oreo biscuits, including mini Oreo and Ritz. The inauguration of the production line coincides with Oreo’s 110 anniversary.
The Ministry of Investment, the Ministry of Industry and the Republic of Indonesia government have shown their support for the investment and production line expansion of the Oreo brand.
The Indonesian market is one of Oreo's strongest markets globally.
The Indonesian market is one of the top five Oreo markets globally, positioned to help Mondelēz International grow its global snacking portfolio further.
“Our investment reflects strong year-on-year growth for Oreo biscuits both in Indonesia and across Southeast Asia,” explains Caton.
The Oreo biscuits produced at the updated factory will be more environmentally sustainable than previously. This is in line with what modern consumers in the region expect from producers of snacks, Mondelēz affirms.
“As our 2021 State of Snacking report confirmed, consumers are increasingly integrating purchasing decisions with their values. They want to buy snacks from companies offsetting their environmental footprint. And, our new Oreo production line in Cikarang supports this,” outlines Zaenal Abidin, Cikarang plant director, Mondelēz Indonesia.
Realizing healthier snacks ventures
As consumer tastes increasingly shift toward healthier foods, Mondelēz International continues to add to its snacking portfolio by buying up the rest of Hu (as in “Human”) Master Holdings, the parent company of Hu Products.
The fast-growing US snacking company’s acquisition of the snacks brand comes after Mondelēz made a minority investment in Hu in 2019.
The initial investment came through Mondelēz’s venture initiative SnackFutures, a venture hub that aims to uncover snacking growth opportunities within high-growth strategic priorities: well-being and premium e-commerce and conventional retail.
Edited by Inga de Jong
