Mondelez steps up regional production to improve efficiency

Mondelez International will start producing more of its snack products in Saudi Arabia, as part of its programme to improve production efficiency, the firm has said.

The company will produce its Barni cake snack and Prince biscuits in its Dammam factory starting in June. Its regional head called for food producers worldwide to move towards reducing production waste levels by improving efficiency.

Global efficiency programme

Mondelez spun off from Kraft in 2012, becoming the holder of Kraft's snack food brands, including Cadbury, Oreo, Tang and Tuc. Earlier this month the company said it aimed to save more than US$3bn by improving productivity throughout its global operations over the next three years.

Speaking at the World Food Security Summit, part of Gulfood, Mondelez vice president and area director for the Middle East, Vishal Tikku, said food producers had to work together to improve the efficiency of the industry.

More than 40% of the world's food production is being wasted, and this is the single largest cause of losses in world biodiversity through deforestation, excessive freshwater consumption and greenhouse gas emissions,” said Tikku in a speech to the World Food Security Summit.

Zero percent waste

When food is wasted it also means that all the resources used in the production of food are lost. Globally, resources are being consumed more quickly than they can be replenished. To reverse this, we need to do more with less. Whilst zero percent waste may not be realistic, it is an important ambition which drives our business and could positively impact the wider food industry,” he added.

Tikku said Mondelez had applied this concept across all areas of its supply chain, and views any part of its operation as having potential to improve efficiency.

We can reduce product waste by ensuring ingredients, materials and finished goods are not thrown out; we can reduce energy waste by optimising output from the energy used; and we can reduce logistics waste by ensuring products reach consumers in the most efficient way possible,” he said.

Currently Mondelez's Dammam plant manufactures Oreo, Belvita and Ritz products, which are distributed to Middle East markets as well as South Africa, Malaysia and South Korea. Its Bahrain facilities produce Tang powdered drink and Kraft cheese.