Monde Nissin Corp., a prominent food conglomerate, has commenced the construction of a P1.2-billion production plant in Davao, Mindanao, aiming to expand its bakery and biscuit business.
The upcoming factory, set to open in February 2024, will augment the capacity of Monde’s existing manufacturing facility that currently supplies the region with its renowned Lucky Me! instant noodles. The new plant will include a bakery and biscuits facility, enabling the production of popular brands like Butter Coconut and Monde Mamon. With “highly automated” operations, the project is expected to generate an additional 500 job opportunities.
Jesse Teo, Monde Nissin’s Chief Financial Officer, highlighted that this expansion not only strengthens the company’s manufacturing capacity but also enhances its network of partner distributors and retailers.
Romeo Marañon, head of Monde Nissin’s bakery and biscuits unit, emphasized that the increased food supply would have a positive impact on the region. He stated, “Monde Nissin has been actively involved in disaster relief efforts in the region through our noodle brand. With the expansion of the bakery and biscuits segment, we will be able to provide more food products and act as a responsive partner, supplying food to communities in need.”
Monde Nissin’s investment aligns with its objective to develop a robust regional and national distribution network. The company’s distribution channels encompass a wide range of entities, including wholesale distributors, smaller retailers, sari-sari stores, sub-distributors, supermarkets, convenience stores, and groceries. This broad network enables greater accessibility to Monde Nissin’s diverse product portfolio.
The company aims to source production materials such as eggs and flour from local suppliers. In addition to managing manufacturing and logistical costs, the establishment of the bakery and biscuits plant is anticipated to shorten inventory cycles and enhance product visibility in Visayas and Mindanao.
Monde Nissin is intensifying its investments in its core Asia Pacific Branded Food and Beverage segments while restructuring its alternative meat business, which has experienced a slowdown.
In the first quarter of 2023, the company reported a net income of P1.94 billion, a 17 percent decrease compared to the previous year. However, revenues increased by 9.5 percent to P20.05 billion. Gross profit experienced a slight decline of 5 percent, amounting to P6.1 billion.