New Zealand Cadbury factory set to close
The Dunedin Cadbury factory in New Zealand is set for closure after a suitable bidder could not be found.
The parent company for Cadbury, Mondelez International, put local production out to tender, seeking a supplier, but the only bidder struggled to meet Mondelez’s requirements.
“Unfortunately, we only received one formal response from a local supplier that was interested in manufacturing the full portfolio of Kiwi products in New Zealand,” Mondelez International’s New Zealand Country Head James Kane said.
“We worked very closely with the supplier to try and find a way for them to take on the work, however the unique requirements of these products meant it simply wasn’t possible,” Kane said.
What does the closure mean for Kiwi confectionery favourites?
Iconic Kiwi confectionery products including Pineapple Lumps, Jaffas and Pinky Bars will now be made in Cadbury’s Hobart factory in Tasmania, Australia.
“The Kiwi products require particular technologies, production processes and skills,” Kane said.
A team of 100 people will remain with the business in New Zealand until 2018 to help the business transition to Australia.
Dunedin factory closing after more than 80 years of operation
Kraft acquired the New Zealand factory in 2010 as part of a $NZ 21.9 billion takeover of the global Cadbury group, of which the New Zealand assets were worth more than $US 200 million.
Kraft later renamed the business Mondelez International, and has injected approximately $US 80 million of capital into the business since acquisition.
The famous Dunedin factory has been in the city for more than 130 years, producing chocolate for Cadbury for more than 80 years.
Mondelez International plans to keep the Cadbury World tourism centre in Dunedin open.
The centre employs 36 people and was given $NZ 7 million for redevelopment in August 2017.
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