A new machine is packing the lollies in 50g and 180g plastic bags, much to the ire of a recycling group.
Cadbury Dunedin site manager Judith Mair said the machine that had filled cardboard boxes since the 1950s was removed from the factory last week.
Wanaka Wastebusters project manager Sophie Ward said the new plastic bags were nominated for the worst packaging in the 2013 Unpackit Packaging Awards.
In 2011, the cardboard boxes were nominated for the best packaging award.
''It's just good old-fashioned cardboard with a touch of glue, no hideous plastic. Even the box the boxes come in is cardboard. Light the fire with it or recycle it. Choice,'' the nomination read.
Ms Mair said consumers could freepost the used plastic packaging to TerraCycle in Christchurch to be recycled to make other plastic products, such as utensils and clothes pegs.