Mondelēz International, makers of iconic brands including Cadbury Dairy Milk, OREO cookies and Philadelphia Cream Cheese, has launched its first economic and social report – ‘Mondelez Australia Making the Right Impact’ – detailing its economic contribution totalling nearly A$1 billion in overall gross value added to the Australian economy and local communities in 2022.
Mondelēz Australia Japan, Australia, New Zealand President Darren O’Brien.
“Being local is important to our consumers and to us,” says Mondelēz Australia Japan, Australia, New Zealand President Darren O’Brien. “Ninety per cent of what we sell in Australia is made right here across our seven plants. On top of that, much of the produce we source is Australian, from the sugar cane in Queensland, to the fresh milk from our fifty-two dairy farmers in Tasmania.”
“We’re a global company with local roots and a national focus.”
“Australian consumers are taking a view right across our value chain. They want to know where their snacks come from, how they’re made and who makes them. That’s why we’re releasing our 2022 economic and social contribution report: Mondelez Australia Making the Right Impact.”
During 2022, the company elevated sustainability as the fourth pillar of its long-term growth strategy, prioritising key areas of its value chain to drive innovative, more sustainable growth the right way. The report details how Mondelēz Australia contributed to the Australian economy and communities across the value chain.
Working with farmers, ingredients and service suppliers
The manufacturer has significantly boosted its annual domestic procurement by 46% since 2019.
Last year, the company sourced $970 million from more than 700 local producers and service suppliers. Over 110 million litres of top-quality milk is supplied by fifty-two Tasmanian farmers for Cadbury Dairy Milk milk chocolate, while sugar cane is sourced from Far North Queensland growers. Together with 10 farmers, the company is piloting how to measure its dairy farmers’ baseline carbon emissions and implementing strategies to reduce their footprint.
Third generation Mondelez supplier Darren Fielding.
“The company has always been good to us – they appreciate family farms, value the high-quality milk we produce and take care of their farmers through thick and thin. It’s a true partnership, based on collaboration and trust,” says third generation Mondelez supplier Darren Fielding.
Sustaining capital investment
Mondelēz Australia has seven manufacturing facilities: four in Melbourne, Victoria, one each in Hobart and Burnie, Tasmania and one in Suttontown, South Australia. The company has invested $402 million since 2019 in Australian manufacturing, including site and equipment upgrades, training, and processes to improve sustainability and reduce carbon emissions.
Mondelez Ringwood plant.
Its Ringwood, Scoresby and Dandenong manufacturing sites use 100% renewable electricity, and the company continues to work with its partners to streamline distribution processes and practices to improve its sustainability footprint. Against a 2018 baseline, Mondelēz Australia reduced its carbon emissions across its supply chain by 62%.
In 2024, Mondelēz will open a 43,000sqm manufacturing and distribution facility in Truganina, in Melbourne’s west, adding an eighth facility to its network.
Becoming the most sustainable snacking company Australia
“Mondelēz is striving to become the most sustainable snacking company Australia because we know it’s our responsibility to help lead the way. Sustainability is now the fourth pillar of our growth strategy, and we’re already making solid progress,” Mr O’Brien said.
Recently, the company announced a major investment in Licella Holdings, to progress construction of one of the first advanced recycling facilities in Australia. Licella will use its innovative Catalytic Hydrothermal Reactor (Cat-HTR™) technology to create a circular economy for soft plastic waste.
Mondelēz Australia is also contributing to the Australian Food and Grocery Council’s National Plastics Recycling Scheme trials for kerbside recycling and is sourcing recycled content to wrap many of its products.
In 2022 over 6000 people were employed across Mondelēz Australia’s value chain to make its products available on shelves for consumers. The company directly employed 2050 people and indirectly supported 4024 jobs.
At Mondelēz Australia’s Hobart factory, the average employee tenure is 21 years, demonstrating the passion people have for the company and its brands. Manufacturing Manager Jamie Salter says sustained investment in people and its Hobart plant has enabled the site to maintain its competitive edge and adapt to changing consumer preferences.
“Over the 37 years I’ve worked at Claremont, I’ve gained experience in health and safety, quality, manufacturing, and management. I’m proud to say that my family has 214 years of experience working with Cadbury and Mondelēz,” Mr Salter said.
In addition to the company’s direct and indirect contributions through employment, investment and procurement, Mondelēz Australia continues to support local communities.
Now in its fourth year, the Cadbury Women in Sport program supports the CommBank Matildas, the AFLW and Rugby Australia’s Wallaroos team, as well as community programs nationally. Over a ten-year period, Mondelēz Australia has invested nearly $50 million in Australian sport.
Mondelēz Australia also supports food rescue organisation SecondBite, this year pledging one million meals for families in-need ahead of Christmas. Since 2019, the business has also invested more than $1 million to support Zoos Victoria, Taronga Zoo and Conservation Volunteers through its Freddo Save the Frogs program.
And in 2022, OREO commenced a three-year investment in the Sydney Gay & Lesbian Mardi Gras.