Sector News

New Zealand: Jobs cut as Mondelez moves Cadbury production

October 24, 2017
Consumer Packaged Goods

Around 300 jobs will be lost as Mondelez International is shifting its Cadbury confectionery production from New Zealand to Australia after efforts to stay local failed.

The confectionery giant claims that despite an “exhaustive search and extensive work with a potential supplier” no local manufacturer has been found. Previously Mondelez had said that if a suitable local manufacturer was found, jobs would be saved and local production of iconic New Zealand brands would carry on.

But now that is just not possible and the Cadbury factory in Dunedin, New Zealand, will close in early 2018.

Mondelez New Zealand country head James Kane said the company had invested heavily over the last six months to find a potential local manufacturing partner but the move now means Pineapple Lumps and other Kiwi treats will be made in Australia.

“We looked at a range of potential solutions, from partnering to make the full portfolio, through to offering individual products to potential suppliers,” Kane said.

“We were absolutely hoping we could make a local solution work for the entire portfolio which included multiple visits by members of our Dunedin, ANZ and regional teams to the site to assess their existing technologies and work processes.”

“The iconic Kiwi products require particular technologies, production processes and skills, and very few manufacturers anywhere in the world could take on this work while continuing to match our product requirements.”

During the £11.9 billion (US$15.7 billion) takeover of the Cadbury Group in 2010, Kraft took over the factory.

Source: Food Ingredients First

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