Mondelēz abandons Kenyan manufacturing

By Oliver Nieburg contact

- Last updated on GMT

Cadbury Kenya to be sales & marketing arm for East Africa, but will no longer produce goods
Cadbury Kenya to be sales & marketing arm for East Africa, but will no longer produce goods

Related tags: Africa, Investment

Mondelēz International will stop manufacturing from its Cadbury Kenya plant at the end of this month as it shifts capacity for Cadbury Drinking Chocolate to Egypt.

Twenty-four employees will be affected by the plant closure. Mondelēz said in a statement that it was committed to Kenya and West Africa in spite of the move.

Cadbury Kenya: Sales & marketing only

“The decision has been taken after careful consideration and extensive due diligence, and allows Cadbury Kenya to invest in creating a more commercially focused business in East Africa, with Kenya as its hub,”​ it said.

The company added that it planned to double its sales in the region over the next three years. “To achieve this, we plan to invest substantially in marketing and our distribution network to reach more and more consumers."

The closure forms part of Mondelēz’s global restructuring of its manufacturing footprint. At the Barclay's Capital Back to School Conference last year​, the firm said it would close smaller sub-scale facilities and look to produce a mix of categories in larger facilities.

In Egypt, Mondelēz has two factories in 10th of Ramadan area for chocolate (Cadbury) and biscuits (Oreo and Tuc). Its other two factories are near Alexandria - one for gum (Trident, Clorets & Chiclets) and the other for candy (Halls and Éclairs).

Egyptian invest-mode

Other confectioners have also been investing in Egypt after political tensions improved following unrest between 2011 and 2013.

Last year, Mars invested $83m (EGP 580m) for its first Twix production line​ at its factory in the 6th of October City facility.

Nestlé also spent $9m this year at its own facility in 6th​ of October City for a Crunch production line​, marking the first time it had produced chocolate in Egypt.

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