NOV 30: Cadbury Confectionery yesterday announced a $20 million manufacturing investment at its Dunedin plant, with strong hints more could be in store. Access to fresh milk from around the region is a key element of the decision, which will mean a 200% increase in production of Cadbury's "chocolate crumb" ingredient.
Crumb production will increase from 5000 tonnes per year to potentially 15,000 tonnes worth $30 million, most of which will be exported. Twenty jobs are expected to be created. Finished chocolate crumb is a dry blend of milk, cocoa and sugar which is produced in small pellet form before being ground into a powder and further processed into liquid, then chocolate.
Unlike many of its confectionery competitors, who use milk powder, Cadbury uses fresh milk. In tandem with Cadbury's $18 million investment, the Government's contestable Strategic Investment Fund is contributing $2 million to a chocolate crumb research and development centre in Dunedin, focusing on flavour profiles and efficient processing practices.
"This new state-of-the-art facility will position Dunedin as a leading source of chocolate crumb for Cadbury Schweppes in the Asia Pacific region, which has enormous potential for growth," Cadbury Australia and New Zealand managing director Mark Smith said in Dunedin yesterday. The production facility put Dunedin "in the forefront" of consideration of further expansion in the future, but Mr Smith was unable to give more details.
Minister of Economic Development Trevor Mallard said that in the short term, more milk would be used from the region, jobs would be boosted, and there would be more exports through Port Chalmers. The project would become "a platform for future expansion", he said. "This future-proofs the viability of the factory. It's a clear signal to Cadbury International that Dunedin wants new projects on the drawing board," the minister said.
Mr Smith declined to comment specifically on the international state of Cadbury, which has a $NZ30 billion market capitalisation, and its worldwide restructuring during recent years, or whether Cadbury in Dunedin had faced downsizing.
In late 2003, the London-based parent company told the London and New York stock exchanges that in order to save $1.12 billion by 2007, it planned to cut 10% of its 55,000-strong global workforce and shut a fifth of its 133 factories.
Instead, Mr Smith praised Dunedin's processing facilities, staff and efficiencies and said establishing the research centre was "well placed to attract new business" and would be good for the local economy.
Cadbury has ... 600 full-time staff and a further 200 seasonal workers in Dunedin.