Mondelēz International to Invest More than $5 Million USD in Biscuit and Baked Snacks Lab and Innovation Kitchen in Singapore
Mondelēz International has inaugurated its Regional Biscuit and Baked Snacks Lab and Innovation Kitchen in Singapore, investing over $5 million USD. This new facility aims to enhance innovation and product development across Southeast Asia, Australia, New Zealand, and Japan. The lab will serve as a Centre of Excellence, promoting co-innovation and creative development in the biscuits and baked snacks category.
Established within the existing Singapore Technical Centre, this lab expands on capabilities in Product Development, Packaging, Process Technology, Consumer Science, Analytical Science, Ingredient Research, and Regulatory Affairs. The facility aims to accelerate Mondelēz’s mission to create 'the right snack, for the right moment, made the right way' and supports the company's focus on mindful snacking, portion balance, and flavor innovation.
- Investment of over $5 million USD into the new lab and innovation kitchen.
- Focus on innovation and product development in Southeast Asia and other regions.
- Expansion of capabilities within the existing Singapore Technical Centre.
- Promotion of mindful snacking and flavor innovation.
- Enhancement of operational effectiveness and upskilling of existing talent.
- Strategic location in Singapore, benefiting from a vibrant food ecosystem.
- Significant capital expenditure of over $5 million USD, which may impact short-term financials.
Insights
The $5 million USD investment in the Biscuit and Baked Snacks Lab and Innovation Kitchen highlights Mondelēz International's commitment to boosting its presence and innovation in the Southeast Asia, Australia, New Zealand and Japan markets. Investors should consider how this type of investment can potentially yield long-term returns through the development of new products and increased market share in growing regions. A key point for retail investors is the strategic location in Singapore, which is known for its robust food ecosystem and as a hub for innovation. The investment signifies a proactive approach to capitalizing on the rising middle class in Asia, who are increasingly seeking premium snacks. This move, while not immediately affecting short-term revenues, aligns well with long-term growth strategies and is an indicator of the company’s focus on sustainable and mindful snacking. Investors should track the progress and outcomes of innovations from this facility to gauge its effectiveness and impact on the company’s financial performance.
From a market research perspective, this investment is strategically sound. Southeast Asia's middle class is expanding rapidly, creating a demand for more varied and premium snacking options. By situating this lab in Singapore, Mondelēz is positioning itself to tap into this growth effectively. The focus on co-innovation and mindful snacking aligns with current consumer trends towards healthier and more responsible eating habits. This not only caters to existing market demands but also places MDLZ ahead in future market trends. Investors should be aware that such strategic moves might lead to a competitive edge over other snack manufacturers who may not be investing as heavily in innovation and regional development. The lab’s emphasis on flavor innovation and product format diversification could also lead to the creation of unique products that can command premium pricing, thus improving margins.
The establishment of this Innovation Kitchen and lab underscores Mondelēz International's focus on consumer-driven research and product development. Understanding the local taste preferences and snacking habits is important in delivering products that resonate with consumers. The investment in developing regional-specific products that are mindful and balanced indicates a deeper connection with consumer demands, potentially leading to better brand loyalty and market penetration. Furthermore, the lab's capabilities in analytical science and ingredient research will likely lead to breakthroughs in product quality and innovation. For investors, this means that Mondelēz is not just expanding its product line but is doing so with a scientific approach that could optimize product acceptance and market success.
SINGAPORE, May 28, 2024 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. (Nasdaq: MDLZ) today announced the inauguration of its Regional Biscuit and Baked Snacks Lab and Innovation Kitchen in Singapore, reaffirming its commitment to innovation and product development across Southeast Asia and Australia, New Zealand and Japan. This new facility was officially opened today by Mr Chan Ih-Ming, Executive Vice President, Singapore Economic Development Board.
The Lab and Innovation Kitchen will serve as a strategic Centre of Excellence and regional hub driving creative development and innovation in the biscuits and baked snacks category. Backed by more than
"At Mondelēz International, we are dedicated to pushing the boundaries of food innovation and product development. Through collaborative efforts, we aim to create a dynamic space where creative ideas can flourish and contribute to the development of new innovative products for our consumers,” said Deepak Iyer, Executive Vice President & President AMEA, Mondelēz International. “This expansion further enhances the capabilities of our Singapore Technical Centre and reaffirms our commitment and contribution to the country, which serves as the headquarters for our Asia Pacific, Middle East and Africa business.”
With a focus on co-innovation, this expansion is designed to help accelerate MDLZ’s mission to create "the right snack, for the right moment, made the right way.” The establishment of the Biscuit and Baked Snacks Lab and Innovation Kitchen marks a significant step in MDLZ's commitment to mindful snacking, including developing products that encourage portion balance and mindful indulgence whilst exploring flavor innovation and different product formats.
Today, the Singapore Technical Centre houses expertise and technical capabilities in Product Development, Packaging, Process Technology Development, Consumer Science, Analytical Science, Ingredient Research, and Scientific and Regulatory Affairs. Through this expansion MDLZ aims to build on these skillsets, upskilling existing talent and evolving employee capabilities to drive deeper consumer-driven innovation and advance operational effectiveness.
Commenting on the inauguration of the Regional Biscuit and Baked Snacks Lab and Innovation Kitchen, Mr Chan said: “The expansion will capitalise on opportunities presented by the rising Asian middle class, and a growing appetite for premium and responsible snacking experiences. Singapore, which is at the heart of Southeast Asia and boasts a vibrant food ecosystem, presents an ideal location for such endeavours. We are proud to stand alongside Mondelēz International as they embark on this new and exciting journey to delight consumers with every bite!”
About Mondelēz International
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2023 net revenues of approximately
| Media contact: | Maninder Kaur +65 9040 6152 maninderjit.kaur@mdlz.com |
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a08d87ab-f286-448d-9458-5dfaeecc79ba
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