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Mondelēz International Accelerates Growth in Europe, Invests $200 Million in Czech Biscuit Plant

Mondelēz International Accelerates Growth in Europe, Invests $200 Million in Czech Biscuit Plant


OPAVA, CZECH REPUBLIC
Thursday, June 14th, 2018

In line with its global growth strategy to create a best-in-class integrated supply chain, Mondelēz International announced it has invested $200 million in its Opava biscuit manufacturing facility since 2014. This facility employs nearly 1,000 people and produces Power Brands like Orea, belVita, Milka, TUC, Chips Ahoy!, and Cadbury for the European market, all of which helped grow revenue in the double digits last year.

Daniel Myers, Executive Vice President, Integrated Supply Chain, Mondelēz International“The investment in our Opava plant is a great example of our global effort to build a world-class supply chain that reduces complexity and increases flexibility while being cost-conscious,” said Daniel Myers, Executive Vice President, Integrated Supply Chain. “We’re focused on winning with our consumers and customers, and we’re becoming a nimbler organization as we simplify and modernize our operations and production capacity for today and the future. By undertaking these changes, we’re making our company more efficient, creating the fuel we need to invest in our brands and our people—our most important assets—and deliver sustainable, profitable growth for our shareholders.”

According to a press release, the new facility aligns with Mondelēz International’s Impact for Growth strategy to increase its positive impact on people and the planet. This includes maintaining world-class safety standards for both its food products and facilities. Specifically, the products made at Mondelēz International’s Opava facility are made with decreased energy usage, water, and waste production, with the plant as a whole characterized as a zero-waste-to-landfill facility.

Mondelēz International's investment supports the company’s global growth strategy to create a best-in-class integrated supply chain and to deliver consumer-inspired quality and innovation that meet changing consumer preferences.

Mondelēz International’s commitment also extends to ensuring its key ingredients are sustainably sourced and of the highest quality. For example, Oreo cookies produced at Opava meet the company’s global Cocoa Life commitment, which focuses on the sustainable cultivation of cocoa, and participate in the Harmony program, which promotes biodiversity and good environmental practices in wheat production in Europe. Mondelēz International plans to have 100 percent of its European wheat needs to be covered by the Harmony program by 2022.

Hubert Weber, EVP and President, Mondelēz Europe“Our growth story in Europe continues thanks to the investments we have made in Opava, one of the most modern factories in our network and a leading producer of biscuits for our European markets,” said Hubert Weber, EVP and President, Mondelēz Europe. “The five state-of-the-art manufacturing Lines of the Future installed here have enabled us to improve the speed, efficiency, effectiveness, and quality of our biscuit production, while improving competitiveness in the European market. The modern production lines enable us to meet growing demand from European consumers for our Power Brands, while other factories in our network continue to produce the local and regional heritage brands that consumers have loved for generations. In all cases, we apply the same high standards for quality and taste, as well as ensuring we reduce our impact on the environment.”

In addition, the Opava plant ups the tally for Mondelēz International’s Sites of the Future. Other locations include sites in Sri City, India; Salinas, Mexico; Bournville, United Kingdom; and the recently opened manufacturing facility in Bahrain.

For more of the latest in deli, dairy, bakery, and specialty foods, Deli Market News will continue to report.

Mondelēz International