Mondelez International to Invest $130 Million in U.S. Biscuit Manufacturing Network
- Investment Focused on New Manufacturing Technology and Capabilities to Drive Further Modernization and Competitiveness
- Philadelphia Bakery to Close in 2015 as Company Consolidates U.S. Biscuit Manufacturing on the East Coast
EAST HANOVER, N.J., Feb. 6, 2014 /PRNewswire/ -- Mondelez International is taking another important step in creating a best-in-class global supply chain today by announcing plans to invest more than $130 million in new biscuit manufacturing technology and capabilities in its current U.S. network. The investment will focus on bakeries in Fair Lawn, N.J., and Richmond, Va., supporting priority cookie and cracker brands and product platforms. To enable this investment, the company will consolidate its current U.S. biscuit manufacturing footprint on the East Coast, resulting in the closure of its Philadelphia bakery by early 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 role of the Philadelphia bakery within the company's biscuit manufacturing network footprint has changed over time. The site currently produces a limited number of core products. Other facilities are better positioned to support the company's future business needs.
The closure of the Philadelphia bakery will affect approximately 350 employees, who were informed of the company's decision earlier today.
"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.
With this announcement, Mondelez International further demonstrates its global focus on redesigning its manufacturing network and creating an integrated supply chain organization capable of delivering a demonstrable advantage while generating savings that can be reinvested for growth.
About Mondelez International
Mondelez International, Inc. (NASDAQ: MDLZ) is a global snacking powerhouse, with 2012 revenue of $35 billion. Creating delicious moments of joy in 165 countries, Mondelez International is a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages, with billion-dollar brands such as Cadbury, Cadbury Dairy Milk and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered beverages and Trident gum. Mondelez International is a proud member of the Standard and Poor's 500, NASDAQ 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com and www.facebook.com/mondelezinternational.
This press release contains forward-looking statements. Words, and variations of words, such as "will," "plan" and similar expressions are intended to identify our forward-looking statements, including, but not limited to, statements about our investments and the expected results of those investments. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those indicated in our forward-looking statements. Please also see our risk factors, as they may be amended from time to time, set forth in our filings with the SEC, including our most recently filed Annual Report on Form 10-K. Mondelez International disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.
SOURCE Mondelez International, Inc.