Mondelez International has announced plans to invest US$50 million in its Banbury, UK factory to build two lines that will manufacture Tassimo beverage capsules that will be installed in 2015.
The company says Tassimo is Europe’s fastest growing single-serve system, brewing a wide variety of beverages including Jacobs and Costa coffees and Cadbury hot chocolate.
This decision is part of Mondelez International’s multi-year investment in European manufacturing, under which US$1.5 billion has been invested since 2010.
The planned investment will create close to 80 roles and coincides with the 50th anniversary of the Banbury factory, which produces coffee brands such as Kenco, Carte Noire and Maxwell House.
The Tassimo capsules produced in Banbury will be exported to Western European coffee markets in France and Spain as well as distributed in the UK.
“Over the past 18 months, we’ve made similar investments in Bournville and Sheffield. The proposed investment is part of our vision to manufacture our products on lines that will enable us to meet growing demand while increasing our competitiveness,” said Phil Hodges, senior VP, integrated supply chain, Mondelez Europe.
Continued investment in the plant has created an efficient and modern factory capable of producing both instant and capsule coffees for Mondelez International’s brands.
The Tassimo beverage system, which was developed in Banbury prior to its launch in Europe in 2004, uses barcode technology to calculate the amount of water, brewing time, and temperature for the specific beverage.
Over the past five years, Tassimo achieved strong double-digit growth in Europe through a winning formula of convenience, an unrivalled brand portfolio and quality coffee.
The company’s supply chain reinvention plan is expected to deliver US$3 billion in gross-productivity savings, US$1.5 billion in net savings and US$1 billion in incremental cash over the next three years.
The investment follows Mondelez Europe’s announced US$100 million commitment to build a biscuit factory in Czech Republic earlier this year, as well as the potential new investment of approximately US$100 million for the Bournville chocolate manufacturing site in Birmingham, UK.
