Oreo Expands into Morocco, Bahrain With New Manufacturing Facility
The Illinois-based maker of the world’s most popular cookie has invested $11 million in a state-of-the-art production facility in Morocco.
Mondelez International is now producing Oreos at the new Casablanca plant, which opened late last month and has the capacity to make almost 2.5 million of the iconic cookies per day or as many as 900 million per year. If laid side by side, that’s enough Oreos in a year to stretch the full length of Morocco more than 15 times.
The investment in the new plant “will make Oreos more available to Moroccans, offering it in a range of attractive formats and at pricing that Moroccans can afford,” says Antoine Collette, head of Mondelez International’s operations in Eastern Europe, the Middle East and Africa.
“Capitalizing on its large and well-developed distribution network, Mondelez Maroc intends to make Oreo widely accessible in traditional- and modern-trade stores.”
Creation of its new Mondelez Maroc subsidiary and the construction of the new production plant comes two years after Mondelez International completed the acquisition of Biscuiterie Industrielle du Moghreb (BIMO), previously Morocco’s largest biscuit maker.
“The investment makes the world’s best-selling cookie widely available to Morocco’s 34 million people and expands the local biscuits market by generating more business for the company’s partners in the region,” says Collette.
DOUBLE DIGIT REGIONAL GROWTH AND A REINVENTION OF THE COMPANY’S GLOBAL SUPPLY CHAIN
In January, the company laid the cornerstone for construction of a new $90 million facility in Bahrain that will produce Ritz crackers, TUC biscuits, Barni cakes, and Oreo cookies for distribution throughout the Middle East. The 2.7 million square-foot plant will be built in three phases and is scheduled to start production early next year.
“Demand for our biscuits in the Middle East and Africa has been growing at double-digit rates and investing in a state-of-the-art facility in Bahrain will enable us to capitalize on this,” says Daniel Myers, Mondelez International’s EVP-Integrated Supply Chain.
“This new investment is part of our journey to reinvent our supply chain around the world to meet growth demands, while also reducing costs and improving productivity,” he says.
Mondelez International’s supply-chain “reinvention plan” is expected to deliver $3 billion in gross productivity savings, $1.5 billion in net savings and $1 billion in incremental cash during 2014 to 2016,” with the savings being a “primary driver of significant improvements in the company’s base operating-income margin in the near term,” adds Myers.
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