Food conglomerate Monde Nissin Corp. started work on a P1.2-billion production plant in Davao, Mindanao that will expand its bakery and biscuit business.
Monde said the new factory, which opens in February 2024, will add capacity to its existing manufacturing facility that has been supplying the region with its flagship Lucky Me! instant noodles.
It will include a bakery and biscuits facility to produce brands like Butter Coconut and Monde Mamon. The company said the project, described as having “highly automated” operations, will create an additional 500 jobs.
“This expansion not only enhances our manufacturing capacity, but also strengthens our network of partner distributors and retailers,” Monde Nissin chief financial officer Jesse Teo said in a statement.
Romeo Marañon, head of Monde Nissin’s bakery and biscuits unit, said the added food supply would also benefit the region.
“Monde Nissin has been a very active contributor to disaster relief in the region through the noodle brand. With the bakery and biscuits expansion, we’ll be able to provide more food products and act as a quick response partner in providing food to communities in need,” he said in the same statement.
According to the Monde, the investment was in line with its goal to build a “regional and national distribution network”.
“The company’s distribution channels encompass wholesale distributors, smaller retailers and sari-sari stores, sub-distributors, supermarkets, convenience stores, and groceries, enabling broader access to their diverse product portfolio,” it said.
“The company seeks to find local sources for production materials such as eggs and flour. Aside from managing manufacturing and logistical costs, the bakery and biscuits plant is anticipated to shorten inventory cycles and improve product shelf visibility in Visayas and Mindanao,” it added.
Monde is ramping up investments at its core Asia Pacific Branded Food and Beverage segments amid a slowdown in its alternative meat business, which is being restructured.
It ended the first quarter of 2023 with a net income of P1.94 billion, down 17 percent from last year, while revenues climbed 9.5 percent to P20.05 billon. Gross profit slipped 5 percent to P6.1 billion.
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