Mondelez International, the parent company of Cadbury, has opened a new $22 million chocolate ingredient facility in Shah Alam, Malaysia, in a move expected to reduce supply-chain lead times by at least two months.
The new facility will produce chocolate crumb, an important ingredient used in Cadbury chocolate products to help deliver their characteristic taste and texture.
Previously, the ingredient was imported from Australia and South Africa. Local production in Malaysia will allow Mondelez to bring the ingredient closer to its manufacturing operations in Southeast Asia, reducing transportation requirements and improving supply-chain efficiency.
According to Nitin Binnani, Vice President of Integrated Supply Chain for Southeast Asia at Mondelez International, producing chocolate crumb locally removes at least two months from the company’s supply-chain lead time.
The investment is also expected to help lower import and transportation costs while providing additional capacity to support the company’s anticipated growth in the Southeast Asian snacking market.
Shah Alam strengthens its role as a Cadbury hub
The Shah Alam facility is home to Mondelez’s sole Cadbury manufacturing hub for Southeast Asia.
The site produces more than 130 varieties of chocolate and approximately 100 million chocolate bars every year, making it a strategically important part of the company’s regional manufacturing network.
Southeast Asia has become an increasingly important region for Mondelez, both as a consumer market and as a manufacturing base.
The company’s Cikarang plant in Indonesia supplies products to nearly 40 countries, including Australia and Japan, while its operations in Thailand serve as an export-oriented hub for gum and candy products.
Building a more resilient supply chain
The investment comes at a time when food manufacturers are placing greater emphasis on shorter supply chains, regional sourcing and manufacturing flexibility.
Mondelez is also currently exporting chocolate crumb from Malaysia to Pakistan, helping address supply disruptions caused by interrupted shipping routes.
By producing a key ingredient closer to its manufacturing operations, Mondelez can potentially respond more quickly to changes in demand while reducing its dependence on long-distance imports.
Southeast Asia attracts more chocolate-related investment
Mondelez’s investment is part of a broader trend of international food and ingredient companies expanding their manufacturing capabilities in Malaysia.
Earlier this year, Cargill expanded its specialty fats production facility in Port Klang, adding capacity for ingredients used in chocolate manufacturing.
With consumer demand for snacks continuing to grow across Southeast Asia, the region is becoming increasingly important to global food companies seeking to expand production, improve supply-chain resilience and serve regional markets more efficiently.
Key Highlights
- Investment: $22 million
- Location: Shah Alam, Malaysia
- Company: Mondelez International
- Brand: Cadbury
- Ingredient: Chocolate crumb
- Supply-chain saving: At least two months in lead time
- Annual Cadbury production: Around 100 million bars
- Regional production: More than 130 chocolate varieties
What This Means for the Food Industry
Mondelez’s latest investment demonstrates how major food manufacturers are increasingly localizing ingredient production to build faster, more flexible and resilient supply chains.
Producing chocolate crumb in Malaysia can help the company respond more efficiently to regional demand while reducing dependence on overseas shipments. It also highlights the growing importance of Southeast Asia as both a manufacturing base and a major growth market for the global snacking industry.
For food manufacturers, investments in local ingredient capabilities can provide several advantages, including shorter lead times, lower logistics costs, improved supply continuity and greater production flexibility.
As companies continue to navigate raw-material volatility, shipping disruptions and changing consumer demand, strengthening regional supply networks is likely to remain an important part of the global food industry’s strategy.
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