INDONESIA — American multinational confectionery and snack food company Mondelez International, has invested US$23 million to expand its production capacity in Indonesia to meet rising demand for oreo cookies.
According to a statement from the Chicago-based company, the project significantly increases its Oreo production capacity, making the Cikarang plant one of the largest cookie and cracker facilities in the world.
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.
“I am very proud to be investing in Indonesia — a top-five Oreo market for Mondelez International globally and a key market for us as we seek to lead the future of snacking around the world,” said Glenn Caton, president of Southeast Asia for Mondelez.
“Our investment reflects strong year-on-year growth for Oreo biscuits both in Indonesia and across Southeast Asia.”
Mondelez said the new Oreo production line also features the latest technologies in biscuit production: reducing energy, water, and carbon emissions in a more sustainable production process.
“As our 2021 State of Snacking report confirmed, consumers are increasingly integrating purchasing decisions with their values,” said Zaenal Abidin, plant director for the Cikarang facility.
“They want to buy snacks from companies offsetting their environmental footprint. And our new Oreo production line in Cikarang supports this.”
Oreo frozen desserts launched
The inauguration of the Indonesian facility comes on the heels of the launch of the Oreo frozen desserts line that will include Oreo bars, cones, sandwiches and tubs.
The bars and cones contain Oreo pieces and are dipped in a coating made from crushed Oreo wafer pieces.
The sandwiches feature two large Oreo wafers. All of the products feature a crème-flavored base with Oreo cookie pieces.
The tubs also will be offered in a 2-in-1 variety featuring both Oreo and Chips Ahoy! cookie pieces.
Mondelez says its new line should not be viewed as a “me-too” cookies and cream product.
Cost inflation continues to impact business
Earlier, Mondelez said it expects to face a larger impact from supply chain snags in its key North American segment in the current quarter, as the chocolatier grapples with labor shortages and inflationary pressures.
The food giant said it expects cost inflation to increase in high single digits compared with 2021.
It also warned of an 8-cent hit to its full-year adjusted earnings per share from foreign currency translation, adding it would decrease net revenue growth by about 2.5%.
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