FAQs

The Decision

Why have you made this decision?

It’s been a particularly difficult decision for our business. We recognise the significant history of Cadbury in Dunedin and its importance to the local community.

While we have invested over $80 million in the factory in the last 10 years and the team is performing well, the factory is a long way from its main market and the volume is small across a complex range of products.

We've absorbed the higher costs for a long time, however the international confectionery industry has never been more competitive.

To view the closure announcement media release, please click here.

What’s the timeline?

Since we announced the proposal to end manufacturing, over the past few weeks we’ve been through a formal consultation process with our people and their representatives.

While a range of issues were discussed as part of this process, no viable alternatives to the proposal were identified.

We expect the factory to remain open until early 2018, with operations to ramp-down progressively from late this year.

Still have a question? Contact our Consumer Advisory team

Products

Why don’t you make it a factory for the New Zealand market?

This would significantly increase duplication across our Australia and New Zealand sites, making the factory less efficient than it is today.

What will happen to Pineapple Lumps, Jaffas and other Kiwi products?

We recognise the passion New Zealanders have for these local products. While we could make these products in Australia, a working group of members from the company, union, MPs and civic leaders will now look for potential third-party manufacturers that could make the company’s Kiwi brands in New Zealand. Any potential manufacturer would need to meet Mondelēz International’s global taste and quality standards and be cost-effective.

Where are Cadbury products for the New Zealand market going to be made?

Over 80 per cent of Cadbury products are already made overseas, including our Cadbury Dairy Milk blocks. These products will not be impacted by this proposal. We will work with the union and civic leaders on a process to determine whether we can maintain local production of some of our Kiwi icon products (eg. Pineapple Lumps and Jaffas) via a local third party manufacturer, however any potential supplier would need to meet our global quality and cost benchmarks.

Will you be changing the recipes and ingredients for any New Zealand products?

We will not compromise on the taste and quality of our products. While the vast majority of products will remain the same, we may take this opportunity to update the recipes and ingredients of a small number of products to reflect the changing taste preferences of New Zealand consumers. However, any changes will be thoroughly tested with Kiwi consumers.

Still have a question? Contact our Consumer Advisory team

Commitment to New Zealand

What will happen to the site?

We recognise the significance of the site as a Dunedin landmark that occupies a central location in the city. While it has been a privilege for us to occupy this site for the last 80 years, given its size and location, we are hopeful of finding a buyer that will use it in a way that supports the local community and economy.

We will consult with local stakeholders to identify how its future use can support the Dunedin community.

Why has this issue just emerged? The site has always been in Dunedin.

The challenges facing local production have existed for a number of years. While we have been able to absorb the additional costs associated with production in Dunedin, the international confectionery market has never been more competitive.

Are you leaving New Zealand all together?

The proposal is intended to ensure our ongoing commitment to New Zealand. We will continue to employ over 130 people across the country. We will focus on those things that we believe offer a point of difference from our competitors; category insights, innovative product development, and helping our customers grow their businesses.

Still have a question? Contact our Consumer Advisory team

Employees

How will employees be supported?

We will provide significant support to help our people move into the next stage of their lives and careers.

We have employee assistance providers available day and night to discuss concerns and provide counselling during this difficult time.

We will offer retraining, upskilling and individual and group outplacement services including resume writing and review, interview skills and job application assistance.

People will be encouraged to apply for vacancies in our Australian and regional sites. If they are successful in applying for a role, we will provide relocation support to them and their families.

We will work closely with governments to identify areas of the economy that are experiencing growth, and those industries where there are skills shortages.

How many people are impacted?

Around 335 people will be impacted.

Still have a question? Contact our Consumer Advisory team

Cadbury World

What is happening with Cadbury World?

At this stage, Cadbury World is not directly impacted by this decision. However, we are conscious of potential community sensitivities around the continued operation of Cadbury World in the absence of the factory.

The business recognises that with over 110,000 visitors each year, Cadbury World is one of the most popular tourist attractions in Dunedin. As part of the announcement, we will communicate our intention to support Dunedin’s growing tourism sector through an investment in the Cadbury World redevelopment.

While the company is ready to invest in redevelopment work to make Cadbury World an even better visitor experience, we won’t impose it on the community. The company is confident the exciting plans for redevelopment and the prospect of more visitors and jobs at Cadbury World will appeal to the people of Dunedin. If the redevelopment does go ahead and once the work is complete, we will look to partner with a private operator to continue to run Cadbury World into the future (2018/2019).

Still have a question? Contact our Consumer Advisory team