FRANCE- Mondelez International’s French biscuit factory has picked up operations after a shutdown linked to the salmonella scare by chocolate ingredient supplier Barry Callebaut.
It is now safe to resume production after a “precautionary” cleaning of the Cestas factory, which according to Mondelez took several weeks and required the shutdown of the lines.
Mondelez confirmed in August the affected biscuits products included the Mikado, Petit Ecolier, Granola, Pépito and Pim’s brands supplied to retailers in France.
However, it will be several weeks before Cesta’s site in Gironde, southwestern France, is fully operational and ready to resume supply to customers.
In June, Switzerland-based Barry Callebaut halted production at a site in Belgium after discovering salmonella in a batch of goods.
The contamination had an impact on some of its clients; for instance, Belgian chocolate manufacturer Guylian had to shut down some of its own production lines.
A Mondelez representative said there had been no impact on the US company’s production in the immediate wake of the event, with the exception of one bakery location.
In 2021, the key chocolate and biscuit categories of Mondelez International, Inc. accounted for a combined 79% of company sales, up from 59% a decade earlier.
Meanwhile, Executives at the company want chocolate and biscuits categories to account for 90% of the company’s sales within the next two to five years.
In 2021, the key chocolate and biscuit categories of Mondelez International, Inc. accounted for a combined 79% of company sales, up from 59% a decade earlier.
“From our perspective, if our business would be only biscuits and chocolate, we would see a much stronger top line and we would see a much stronger bottom line and that’s where we have to gradually move toward,” said Dirk Van de Put, chairman and chief executive officer.
As part of a plan that has already seen the inclusion of nine firms worth US$2.8 billion in sales since 2018, the shift will be achieved through a balance of acquisitions and divestments.
Among the companies that Mondelez has recently bought are Tate’s Bake Shop, Gourmet Food Holdings, Hu, and Ricolino.
However, the corporation isn’t in a haste to sell the 20% of its portfolio that doesn’t fit into the two main categories.
“It’s not like the categories that aren’t core for us are doing particularly bad and we feel that we need to exit right away,” Mr. Van de Put said. “We see it more as a balancing act.”
By connecting chocolate with holidays from various cultures, the chocolate category hopes to promote seasonal gifting all year long.
The company is spending to increase its share of the premium and dark chocolate markets because it is underrepresented in those markets.
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