Mondelez International is planning to invest approximately $5m in its operations in Pakistan, aiming to boost local production in the Asian country. The US confectionery and snacking giant, known for its Cadbury chocolate and Oreo cookies, intends to localize 50% of the raw materials used in its finished goods production within Pakistan. Previously, the company relied heavily on imported raw materials, but has successfully localized 22% of its sourcing and aims to increase this to 50% by 2025.
In a statement, Mondelez highlighted the importance of sourcing essential ingredients locally, including cocoa, dairy ingredients, sugar, flour, nuts, and packaging materials. The company plans to invest in its manufacturing facilities located in Hub, Baluchistan, to advance localization initiatives and ensure high-quality standards.
“Due to severe macro-economic pressures and a foreign exchange liquidity crunch in the country, Mondelez Pakistan took proactive steps to mitigate the impact by initiating measures to localize 50% of the materials previously imported, with the exception of imports like cocoa beans, which are not locally harvested,” stated Mondelez.
The company is focused on future-proofing its business in Pakistan through localization, export growth, and long-term presence in the market. With a joint venture with Continental Biscuits, Mondelez Pakistan exports products to countries like Qatar and Saudi Arabia. In 2023, Mondelez’s Asia, Middle East, and Africa markets generated $7.1bn in turnover, marking a 4.6% increase from the previous year.
Mondelez has also collaborated with Lotus Bakeries to produce and sell biscuits in India, with a focus on the popular Lotus Biscoff brand. This partnership aims to leverage the success of Lotus Bakeries’ global sales revenue, strengthening Mondelez’s foothold in the competitive food and beverage industry trends. The company’s strategic investments in local capabilities and export opportunities position it as a key player driving sustainable growth in Pakistan’s economy.
