Mondelez to Invest USD130 million in Biscuit Manufacturing

Mondelez International is announcing plans to invest more than USD130 million in new biscuit manufacturing technology and capabilities in its current U.S. network, thus advancing towards establishing its global supply chain.

The investment will focus on bakeries in Fair Lawn, N.J., and Richmond, Va., supporting cookie and cracker brands and product platforms, according to the Ingredients Network. The company will consolidate its current U.S. biscuit manufacturing footprint on the East Coast to facilitate the investment. Additionally, its Philadelphia bakery will be closed by 2015.

“This investment in our North American biscuit supply chain offers us an exciting opportunity to further improve the overall effectiveness, efficiency and the competitiveness of our manufacturing network, with a focus on driving big bets and accelerating growth for the biscuit category,” said Cindy Waggoner, vice president, North America Integrated Supply Chain, Biscuits. 

“This announcement is also bittersweet.  It’s always a difficult decision to close a manufacturing facility, especially one like the Philadelphia bakery, which has been part of our organization and the community for many years,” the Ingredients Network quotes.

The role of the Philadelphia bakery within the company’s biscuit manufacturing network footprint has changed over time, as the site with approximately 350 employees currently produces a limited number of core products, according to Mondelez. Other facilities are better positioned to support the company’s future business needs.

“Our focus right now is on our employees in Philadelphia.  We’re making this announcement almost a full year in advance of the planned closure to help provide a smooth transition.  We’re committed to treating our employees fairly and working with them through this difficult time,” Waggoner added.