Mondelēz makes multi-million investment in Indonesian Oreo production

A major investment from Mondelēz of $23 million has been made into enhancing its key regional Oreo biscuit production line in Cikarang, Indonesia, reports Neill Barston.

As the business notes, the move comes as the brand celebrates its 110th anniversary, and comes in response to heightened demand from a total of 35 countries across Southeast Asia and the broader Asia Pacific and Middle East region.

Furthermore, its Cikarang factory – located about 50 kilometres from Central Jakarta – produces biscuits including Oreo, Mini Oreo, and Ritz and, with the expansion, reportedly becomes one of Mondelēz International’s largest biscuit factories in the world.

In global terms, the international biscuit market was estimated to be worth a total of $106 billion, growing at a compound rate of nearly 5% until 2026, as consumers helped deliver a continued upturn for the market segment, including gaining greater popularity in Asia.

“I am very proud to be investing in Indonesia – a top-five Oreo market for Mondelēz International globally and a key market for us as we seek to lead the future of snacking around the world. Our investment reflects strong year-on-year growth for Oreo biscuits both in Indonesia and across South East Asia as more and more consumers fall in love with the World’s Number 1 Cookie – Oreo”, said Glenn Caton, president Southeast Asia, Mondelēz International.

“The Cikarang expansion is one of the fastest start-to-finish capital projects of this scale globally. What made it even more remarkable is how the team navigated through the COVID challenges to bring the additional capacity online in record time. I want to thank the government of the Republic of Indonesia for its support, including the Ministry of Investment and Ministry of Industry.”

As the company added, its latest production line also uses 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. They want to buy snacks from companies offsetting their environmental footprint. And, our new Oreo production line in Cikarang supports this”, explained Zaenal Abidin, Cikarang plant director, Mondelez Indonesia.

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