Mondelēz to invest 40 million dollars in new production line in Bulgaria

In the last 10 years, the chocolate factory of Mondelēz in Svoge have been boosted with BGN 150 million worth of investment

Mondelēz to invest 40 million dollars in new production line in Bulgaria

The project in the Svoge-based factory is expected to be completed within two years

In the last 10 years, the chocolate factory of Mondelēz in Svoge have been boosted with BGN 150 million worth of investment

© Монделийз България


Mondelēz International's chocolate factory in the Bulgarian town of Svoge will be expanded with a new line for molding of chocolate tablets. The planned investment amounts to 40 million dollars and is expected to be completed within two years, plant director Anna Marinkova told the Capital Weekly. "This is a high-tech 'line of the future' that will create new jobs and ensure well-controlled and optimized processes," Marinkova said.

Pocket-size chocolate bars

The factory in Svoge turned out 34,000 tonnes of various chocolate products in 2023, up 15% year on year. Production growth expectations for this year, however, are more cautious due to the rising price of cocoa and the war in Ukraine. Over 10% of the output used to be destined for Russia but the company no longer exports there. "We are seeking solutions to make up for the quantities intended for the Russian market," Marinkova said. "We are developing a pocket-sized chocolate option, which should go into production by the middle of next year. We will offer different varieties of the Milka brand," Marinkova added.

Anna Marinkova, Director of the Mondelēz Chocolate Factory in Svoge
Source: Монделийз България

The factory in Svoge is a pilot for Mondelēz, because it is a center for the development of numerous products and the testing of processes before they are established and expanded globally within the corporation's system in Europe and worldwide.

Ongoing investments

The plant employs over 400 people and operates more than 10 technological lines churning out 171 types of products. The factory makes 80% of the chocolate mass needed for its operations, ensuring a closed-loop process. Investments in the plant for the past 10 years have exceeded 150 million levs (75 million euro), Marinkova explained. The factory is known for its brands Svoge, Mlechen, Sezoni, Suchard and Moreni. Products are also made for the extensive Milka portfolio, as well as various local brands for foreign markets, including Poiana for Romania, Alpen Gold for Poland, Cadbury for the UK, Lacta and Pavlidis for Greece, Karuna for Lithuania and Figaro for Slovakia. About 30% of the output is intended for the Bulgarian market, the rest is exported to more than 25 markets worldwide across all continents.

The Svoge factory has specialized production capabilities that are not replicated at other Mondelēz locations. The plant can make more complex products with cream, additives, peanuts and fillings. For example, Mondelēz International exclusively produces Milka Peanut Caramel chocolate in Svoge, which is sold in 27 countries in Europe, Australia, South America and Asia.

The factory also houses the world's fastest packaging line for chocolates, in which 22 million levs has been invested. It is the size of a football field and can produce up to 6,600 chocolates per minute (compared to 3,136 on the old line). Besides speed, the new packaging technology reduces packaging by 20% and makes it easier to recycle, optimizing the storage and preservation of product flavors.

100th anniversary

The factory was founded in 1924 by Velizar Peev, who had been making sugar products and chocolate in Sofia since 1901. In 1935 he moved all production operations to Svoge. The factory was nationalized in 1947 and renamed Republic Chocolate Factory. In 1994 it was privatized by Kraft Jacobs Suchard (now Mondelēz). In 2009 the corporation chose Svoge for the establishment of a center for local brands. New technologies and production equipment have allowed the Mondelēz plant in Bulgaria to become a center for producing Milka chocolates for the entire world.

Today Mondelēz's business in Bulgaria is managed by six companies covering 12 markets in Southeast Europe. In 2021 Mondelēz International acquired Greece's croissant and bake-rolls producer Chipita for about 2 billion dollars. Following the merger, the enterprises in Southeast Europe have a combined turnover of over 1 billion dollars annually and more than 4,000 employees.

Mondelēz International's chocolate factory in the Bulgarian town of Svoge will be expanded with a new line for molding of chocolate tablets. The planned investment amounts to 40 million dollars and is expected to be completed within two years, plant director Anna Marinkova told the Capital Weekly. "This is a high-tech 'line of the future' that will create new jobs and ensure well-controlled and optimized processes," Marinkova said.

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