The decision to present this proposal was difficult for the business as we recognise the significant history of Cadbury in Dunedin and its importance to the local community.
$80 million invested in the factory over the last 10 years
The reality behind the decision is that while we have invested over $80 million in the factory in the last 10 years and the team is amongst the best in the Asia-Pacific region, the factory is a long way from its main market with over 70 per cent of its product exported to other countries.
Additionally, the volume produced in Dunedin is small while the portfolio of products we make on the site is complex. While the business has absorbed the additional costs associated with Dunedin production for a number of years, there’s existing capacity in our Australia sites which can deliver these production volumes at the same quality our consumers expect.Want more details? Read the FAQs
This proposal is designed to support the sustainability of our business and the 130 people we would continue to employ across New Zealand even if the proposal is adopted.
We are now in the process of consulting with our Dunedin employees and their representatives to talk through the proposal and seek their views. While we expect this process to take approximately two weeks, there is flexibility in this timeframe to ensure we have the opportunity to consult with all of our people, so that we can make an informed decision.
The proposal would see all of our people remain with the business until late 2017, with production ramping down until it ends in early 2018.
We have initiated consultation now to give our people as much time as possible to consult with us and to consider their options before any potential closure.
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