Just when the future of Dunedin's Cadbury chocolate factory appeared more secure than ever, the guessing games have started again.
The likely $26.6 billion takeover of Cadbury by American food giant Kraft next month raises the spectre of sweeping changes to the 186-year-old Cadbury empire which could impact on the Dunedin factory.
However, an industry source spoken to by the Otago Daily Times yesterday suggested the recently modernised Dunedin factory is far better placed to withstand the winds of change than it was previously.
"I think we would have been in trouble if we hadn't made these changes."
The source suggested Cadbury's move to turn the Dunedin factory into a "centre of excellence" as part of a $200 million upgrade of its Australia-New Zealand operation had put the factory "in the best possible shape it could be in".
The strong demand for chocolate in the two countries, the proximity to a supply of high-quality milk and Dunedin's cool climate were all factors strengthening the factory's position.
However, Otago Service and Food Workers Union spokesman Neville Donaldson believed nothing could be ruled out with the Kraft takeover.
"Cadbury as an employer in the main had a very good reputation. But that isn't the case with Kraft.
"Kraft have the reputation of buying up companies and sacrificing the staff and workplaces in the name of profit."
Mr Donaldson said Kraft closed 35 workplaces internationally between 2004 and 2008 and laid off 19,000 workers.
He referred the ODT to Cadbury union comments in a British newspaper warning that 30,000 jobs could be at risk because Kraft would be "weighed down" by $49 billion in debt.
Mr Donaldson said 160 jobs were lost at the Dunedin factory last year.
"There has been a major restructuring and significant investment and improvements in that site, but the relevance of that will come down to what Kraft want and that is not necessarily what Cadbury saw."
