Why have you made this proposal?
It’s been a particularly difficult decision for our business to announce this proposal. 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 international confectionery industry has never been more competitive.
What is the consultation process?
The consultation process is an opportunity for us to consider feedback from our people, unions, governments, community groups and suppliers before coming to a decision.
What’s the timeline?
We have started consultation now to give our people as much time as possible to consult with us and to consider their options before any potential closure. While we are not setting a hard deadline on consultation, we expect it to take around two weeks, with an outcome announced about a week after consultation ends. If the proposal is adopted, we would end some operations in late 2017, with the rest in early 2018.Still have a question? Contact our Consumer Advisory team
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, which would increase costs. However we welcome discussion and feedback on this during consultation.
If the proposal is adopted, what would happen to Pineapple Lumps, Jaffas and other Kiwi products?
We recognise the passion New Zealanders have for these local products. With this in mind, we will be looking at the potential to continue making them in New Zealand. We will be approaching some local third party manufacturers to gauge their interest in producing these products for us. If we do identify a local maker, we will then need to conduct more detailed work to ensure they can meet our performance and quality benchmarks which are amongst the most stringent in the world.
If the proposal is adopted, where are Cadbury products for the New Zealand market going to be made?
Over 80% of Cadbury products are already made overseas, including our Cadbury Dairy Milk blocks. These products will not be impacted by this proposal. The vast majority of the remaining 20% of products that are currently made in Dunedin will be made in Australia.
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
If the proposal is adopted, 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.
If the proposal is adopted, 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
How will employees be supported?
This is a proposal only at this stage, not a decision. If the proposal is adopted, 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?
If the proposal is adopted, 350 people would be impacted.Still have a question? Contact our Consumer Advisory team
What is happening with Cadbury World?
At this stage, Cadbury World is not directly impacted by this proposal. However, if the proposal is adopted, 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 proposal 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