Mondelez International, the owner of popular brands such as Oreo and Milka, has joined forces with packaging manufacturer Amcor to invest in Licella, a recycling technology business based in Australia. The collaboration aims to establish one of the country’s first “advanced recycling” facilities. Licella has developed the Catalytic Hydrothermal Reactor (Cat-HTR) platform, a hydrothermal liquefaction (HTL) technology that represents the next generation of advanced recycling. This innovative process chemically transforms various waste plastics into a high-quality oil, serving as a direct substitute for fossil oil. By enabling a circular economy for plastic that would otherwise end up in landfill, this advancement helps drive towards achieving net-zero carbon emissions.
The newly planned facility, named Advanced Recycling Victoria, is expected to initially handle around 20,000 tonnes of end-of-life plastic per year, with potential plans for scaling up to 120,000 tonnes per year. Through its partnership with Amcor, Mondelez anticipates accessing recycled content from the site, which will substantially reduce its reliance on virgin plastic for soft packaging requirements in Australia. Christine Montenegro McGrath, Mondelez’s Chief Global Impact and Sustainability Officer, highlighted the importance of sustainable local recycling solutions, particularly in light of the company’s packaging strategy focused on promoting better packaging and supporting circular economies. Mondelez aims to achieve its goal of net-zero packaging waste and has committed to having all its packaging designed to be recyclable by 2025, along with a 5% reduction in virgin plastic use and a 25% decrease in virgin rigid plastic compared to a 2020 baseline.
Dr. Len Humphreys, CEO of Licella, expressed his enthusiasm for the investment, emphasizing the significant demand for sustainable plastic solutions that contribute to food-grade recycled content—a demand that has been rapidly increasing. This strategic investment will further the advancement of Licella’s Australian facility, aligning with the growing need for environmentally friendly alternatives in the plastic industry. Financial details of the investment were not disclosed at this time.
In their second-quarter financial report for 2023, Mondelez reported revenues of $8.50 billion, marking a 17% YoY increase, while operating income rose by 53.7% to $1.42 billion. The company has revised its full-year 2023 revenue forecast, now expecting organic net revenue growth of +12%, up from the previous guidance of +10%.
By partnering with Licella and Amcor, Mondelez demonstrates its commitment to driving sustainability initiatives within the food and beverage industry. This collaborative effort not only showcases the latest food manufacturing trends and food processing technology but also highlights the importance of food and drink industry innovation and food and drink sustainability. By investing in advanced recycling facilities and reducing the use of virgin plastic, Mondelez is aligning with food and drink industry regulations while addressing food and drink packaging requirements. Furthermore, this investment serves as a testament to Mondelez’s dedication to keeping up with food and drink marketing strategies and understanding food and drink consumer trends.
