Oreo Maker Mondelez Commits $76 Million To Swiss Toblerone Factory

Mondelez International Inc. MDLZ is strengthening its presence in Switzerland through a planned investment of nearly 65 million Swiss Francs ($76.62 million) to upgrade its Toblerone-making facility in Bern.

The Oreo maker aims to establish the facility as a global hub for high-end chocolate manufacturing.

The investment will elevate the Bern site into a dedicated "Center of Excellence" for Toblerone, a brand that has been crafted in Switzerland's capital since 1908.

As interest in premium chocolate continues to grow, the Bern factory is set to receive an improved production line, which is expected to be operational by fall 2025.

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Alongside increasing output, the company plans to improve its chocolate and nougat processing, modernize the facility's infrastructure, and optimize its logistics systems.

About 90% of Toblerone sold around the world originates from the Bern site, underscoring its strategic importance.

The factory has been a key part of the brand's identity for over a century. As a tribute to this heritage, Toblerone bars made in Bern will soon carry the Swiss flag on their packaging, highlighting their origin.

Mondelez's decision aligns with its target of becoming the global leader in chocolate by 2030. Toblerone, with its iconic triangular shape and heritage dating back to its invention by Theodor Tobler and Emil Baumann, stands at the core of this strategy.

The company plans to use the brand's strong recognition and market dominance, particularly in travel retail, as a launchpad for further growth.

The company's Chocolate Category recorded an 8% growth in 2024. Mondelez CEO Dirk Van de Put projected a 30% to 50% increase in chocolate costs, particularly due to a supply crisis in Africa.

The rising costs could lead to customers dishing higher prices on chocolate products. The company expects FY25 adjusted EPS to decline approximately 10% on a constant currency basis due to unprecedented cocoa cost inflation.

Price Action: MDLZ shares traded lower by 0.91% at $65.59 at the last check on Thursday.

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Photo via Mondelez