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Jun 14, 2018

Mondelēz International Invests $200 Million in Czech Biscuit Plant to Accelerate Growth in Europe

Investment Is Part of the Company’s Global Supply Chain Reinvention Journey

OPAVA, Czech Republic, June 14, 2018 (GLOBE NEWSWIRE) -- Mondelēz International today announced it has invested $200 million since 2014 in its Opava biscuit manufacturing facility, which employs nearly 1,000 people and produces Power Brands like Oreo, belVita, Milka and Cadbury, for the European market. The investment builds on Opava’s proud heritage of more than a century as a biscuit-making center and 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 inaugurated its $200MM state-of-the-art biscuit plant in Opava, Czech Republic
  The 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.

 

“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 more nimble 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.”  

“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. Weber noted that several of the company's biscuit brands, including Oreo, Milka, Cadbury, TUC and Chips Ahoy!, grew revenue double digits in Europe last year.

Weber continued: “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.”

The new facility also aligns with Mondelēz International’s Impact for Growth strategy to increase its positive impact on people and the planet. The company prides itself on maintaining world-class safety standards for the food it sells and the facilities in which its people work. The company’s approach to quality is consistent across its brands, ensuring that consumers experience the same high quality and great taste in every bite. In addition, biscuits produced at Opava are made with as little energy usage, water and waste production as possible, while the plant as a whole is a zero-waste-to-landfill facility.

The commitment extends to key ingredients, which are also sustainably sourced. Oreo cookies produced at Opava are part of the company’s global Cocoa Life commitment that focuses on sustainable cultivation of cocoa, while the wheat used in biscuits produced there is increasingly sourced through the Harmony program that promotes biodiversity and good environmental practices in wheat production in Europe. By 2022, 100 percent of the company’s European wheat needs will be covered by the Harmony program. Through these signature sustainable agriculture programs, the company ensures that the raw materials used are of the highest quality and grown in thriving farm communities.

The Opava plant joins other Mondelēz International Sites of the Future that have opened or been upgraded over the last few years, including sites in Sri City, India; Salinas, Mexico; Bournville, United Kingdom; and, most recently, the new manufacturing facility that opened in Bahrain in April.

About Mondelēz International

Mondelēz International, Inc. (NASDAQ:MDLZ) is building the best snacking company in the world, with 2017 net revenues of approximately $26 billion. Creating more moments of joy in approximately 160 countries, Mondelēz International is a world leader in biscuits, chocolate, gum, candy and powdered beverages, featuring global Power Brands such as Oreo and belVita biscuits; Cadbury Dairy Milk and Milka chocolate and Trident gum. Mondelēz International is a proud member of the Standard and Poor’s 500, Nasdaq 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com or follow the company on Twitter at www.twitter.com/MDLZ.

Contacts: Michael Mitchell (Media)   Shep Dunlap (Investors)
  +1-847-943-5678   +1-847-943-5454
  news@mdlz.com   ir@mdlz.com

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/8fde519d-fe48-4e16-996b-37de2afae029.

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Source: Mondelez International, Inc.