Mondelez opens a Cadbury facility in Malaysia and cuts supply time by two months for one of its essential ingredients

Mondelez International, the company that owns the Cadbury brand, has opened a $22 million production facility in Shah Alam, Malaysia. The factory will locally produce “chocolate crumb,” an essential ingredient for the taste and texture of chocolate, which was previously imported from Australia and South Africa.

Local production will reduce the time needed for procurement by at least two months and lower import and transportation costs, according to Nitin Binnani, Mondelez’s vice president for integrated supply chain in Southeast Asia. The company is thus preparing for increased sales in the region and for strengthening local supply chains.

The Shah Alam factory is the group’s only Cadbury center for Southeast Asia. The facility produces more than 130 chocolate varieties and approximately 100 million bars annually. The ingredient manufactured here is also exported to Pakistan to offset disruptions along maritime routes.

The investment comes after two years marked by record cocoa prices, amid unfavorable weather and poor harvests. Although prices have eased, Mondelez estimates that the Southeast Asian snack market still has significant growth potential.

The group also owns the Oreo, Ritz, and Sour Patch Kids brands.