Mars is investing AUD $113 million in its petfood factory in Wodonga, with plans to introduce new production facilities focused on pouched cat food for its Whiskas and Dine ranges.
Around AUD $3 million of the investment will be allocated to 10 mobile robots designed to move materials within the plant and automate repetitive tasks. The upgrades are intended to increase throughput without significantly expanding labour or floor space.
The company has identified persistent inflation across its supply chain as a key driver behind the investment. Input costs are estimated to be rising by around 5 percent, with fuel surcharges on freight contributing significantly. Internal projections suggest supply chain inflation could approach 10 percent if diesel prices continue to increase.
To address these pressures, Mars is introducing automation and AI-supported planning tools aimed at reducing waste and improving production scheduling.
The investment also indicates continued strong demand for petfood, supporting significant capital expenditure despite slower profit growth.
The move reflects a broader trend among global manufacturers, which are adapting to ongoing energy and logistics challenges rather than treating them as temporary disruptions. By integrating automation into its Australian operations, Mars is positioning itself to manage sustained increases in fuel and transport costs.
