Oreo production underway in Russia

Oreo production underway in Russia

Mondelez International has started to manufacture Oreo biscuits in Russia.

The snacks giant said the first "made-in-Russia" biscuits would go on sale in the country next month.

"There were sporadic imports from Europe to Russia in the past with limited distribution. What’s new here, in addition to the Russia-based manufacturing for the local market, will be our significant efforts to continue building Oreo as an iconic brand in the Russian market," the company told just-food.

Oreo biscuits will be available in retail outlets in Russia in three formats: a 38g package for individual consumption, plus larger 95g and 228g packs.

Mondelez has upgraded a line at its plant in Sobinka, a town east of Moscow, to produce the snacks.

The company sells biscuit brands in Russia including Jubilee, Barni and Tuc.

Last year, Mondelez announced plans to build a chocolate and biscuits factory in the Russian city of Novosibirsk. The snacks giant said the plant would manufacture brands including Milka chocolate and Jubilee cookies. The facility will have a capacity of 50,000 tonnes a year. Construction will begin this summer and will be completed by the end of 2015, Mondelez said.

In the second quarter of 2015, Mondelez saw sales in Russia increase by over 20%. Chairman and CEO Irene Rosenfeld said the company upped prices to combat the "sharp devaluation" of the rouble. However, she added: "Vol/mix was flat as we increased brand support and expanded distribution. Performance was strong across all categories."

Mondelez does not provide sales numbers by market but Rosenfeld said a "strong performance" from its biscuits business in Russia was a factor in a 5% rise in global biscuit sales.