Monde Nissin has invested Pesos 1.2 billion (US$21.7 million) to expand production of its facility at Davao City, Mindanao. The plant is set to include a bakery to produce its brands Butter Coconut, a crispy sweet biscuit brand, and Monde Mamon, a traditional Filipino sponge cake brand. The facility had already been producing Lucky Me! noodle products for over a decade.
The project is expected to contribute to the bottom line of Monde Nissin by February 2024. It is also anticipated to shorten inventory cycles and improve product shelf visibility in the Visayas and Mindanao regions. Monde Nissin Chief Financial Officer Jesse Teo said, “This expansion not only enhances our manufacturing capacity but also strengthens our network of partner distributors and retailers. It enables us to supply beloved Monde Nissin products to customers in the region more efficiently, amplifying our impact and reach.”
The expanded production will also aid in building community resilience as Mindanao becomes more prone to natural disasters. Monde Nissin has been an active contributor to disaster relief efforts in the region.
At the same time, Monde Nissing is also eyeing on mergers and acquisitions (M&As) as well as product innovations to drive its growth. Its CEO Henry Soesanto said, “We are looking for portfolios that can create synergies with either territory or product portfolio. Ideally, these are opportunities that will leverage Monde Nissin’s competence in distribution, marketing, consumer insight and brand building. For our Asia-Pacific branded food and beverage (APAC-BFB) business, the group will leverage its expertise on innovation, brand building, health, sustainability and convenience to create products that address consumer demands.”
For the meat alternative business, which includes the Quorn brand, the group will continue with new product development as it aims to address increasing demand for healthier and more sustainable foods.
Soesanto mentioned that the bulk of the group’s capital expenditures of around Pesos 7.42 billion (US$136.4 million) for 2023 will be injected into the Asia Pacific branded food and beverage division. The group also plans to taper capital expenditure on the meat alternative business as the current Quorn capacity is sufficient to meet existing demand. The group is however confident of the long-term potential of the meat alternative space.
In 2022, the group reported a 6.7% growth in revenue to US$1.34 billion. Its Asia Pacific branded food and beverage division made up nearly 80% of the group’s revenue, with its meat alternatives division comprising the remainder.