Mondelēz’s $200m reinvention to accelerate growth in Europe

The global snack giant has invested $200m since 2014 in its Opava facility, which employs nearly 1,000 people and produces brands like Oreo, belVita, Milka and Cadbury, for the European market.

According to Daniel Myers, executive VP, Integrated Supply Chain, the investment supports the company’s Global Supply Chain Reinvention Journey.

“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,”​ he said.

“We’re becoming a more nimble organization as we simplify and modernize our operations and production capacity. By undertaking these changes, we’re making our company more efficient, creating the fuel we need to invest in our brands and deliver sustainable, profitable growth for our shareholders.”  ​

Sites of the Future

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, UK; and, most recently,  the new manufacturing facility in Bahrain.​​

 “The five 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,”​ said Hubert Weber, EVP and president, Mondelēz Europe,

“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.”​

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.

Impact for Growth

The new facility is also aligned with Mondelēz International’s Impact for Growth strategy.

Biscuits produced at Opava are made with as little energy usage, water and waste production as possible, while the plant is a zero-waste-to-landfill facility.

Key ingredients are also sustainably sourced.

For example, wheat is sourced through the Harmony program that promotes biodiversity and good environmental practices,​ ​while the Oreo cookies are part of the company’s global Cocoa Life commitment that focuses on sustainable cultivation of cocoa.