Dive Summary:

• Mondelez will add five new, previously unnannounced factories by 2020. This is in addition to eight other new factories announced previously.
• The company also plans to double capacity at 16 existing facilities around the globe..
• Older, substandard plants are destined for the wrecking ball.
• The company says the supply-chain revamp may boost operating margins by as many as 4.5 percentage points.

Dive Insight:

The production overhaul comes roughly one year after Kraft announced it would split into two companies. Mondelez, which inherited the Kraft snack food brands in the split, also inherited some 170 production facilities around the globe. Changing technology, shifting demographics and the aging of equipment all dictated that Mondelz revamp its supply chain.