Moro production to move to Australia
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The Moro bar – Cadbury's best-selling chocolate bar in New Zealand – is set to be made in Australia, along with other popular Kiwi treats including Perky Nana, Crunchie, Jet Planes and Eskimos.
However, New Zealand will become a specialist centre for boxed chocolates, exporting 80 per cent of its confectionery to Australia and Asia.
The move is part of a restructuring that includes closing the Cadbury factory in Auckland, another one in Australia, and a new factory in Thailand now making Minties and other chewy lollies.
Once all the changes have been implemented, 265 job will have been lost in New Zealand.
The Aussie-made bars and lollies will be on New Zealand shelves within six months, depending on retailers' stockpiles.
The Thai-made lollies are already on shelves.
Cadbury New Zealand managing director Matthew Oldham said the decision had been signalled two years ago.
"But until it happens it doesn't crystallise in people's minds. It doesn't make sense to have factories in New Zealand making hundreds of lines and factories in Australia that make similar lines but also have equipment up for replacement.
"The future of manufacturing is to have modern factories that can compete globally."
The Dunedin Cadbury factory, which has had about $70 million in upgrades, will specialise in assorted boxed chocolates such as Roses and Milk Tray, which will sell in the Australian market. It will also make marshmallow-type chocolate products, like the Pinky and chocolate fish, and favourites including Jaffas and Pineapple Lumps.
Dunedin will also specialise in "crumb", the sugary chocolate-base made with New Zealand milk. The crumb will be sent to Australia and mixed with their milk, potentially affecting the taste in both countries.
The Press understands a major Australian chain will pick up some of the products typically associated with New Zealand consumers.
It has been a year of confectionery controversy for Cadbury.
In August, Eskimos were slammed by a Canadian tourist who claimed the sweet had a bigoted name and negatively stereotyped shape.
In August, the company backtracked on a disastrous attempt to add palm oil to its famous Dairy Milk chocolate.
In September, fans protested outside the Dunedin factory over the discontinuation of Snifters, Tangy Fruits and Sparkles.
KIWI FARE CHANGES LEAVE BAD TASTE
This week, Kiwi consumers were upset to find production of Minties had moved to Thailand, as the Moro bar prepares to move to Australia.
The foods will not suddenly be laced with minced lemongrass or extract of kangaroo, but something about the changes has left a bad taste.
Many of our traditional foods have been shipped from Australia for years.
Wattie's tomato sauce is marketed as "New Zealand's favourite", and it is – but it is made in Australia and packed here.
The classic party snack of Kiwi chup'n'dup is more of a trans-Tasman affair, with the Maggi onion dip made here while its co-dependent can of Nestle's reduced cream (bearing the tagline "The original Kiwi dip") is produced in Australia.
Buy New Zealand Made Campaign sales and marketing manager Trina Snow said New Zealand manufacturers went through "a lot of red tape" to keep standards high.
"People trust New Zealand products," she said. "You know what goes into things here.
"People can moan and grumble about offshore production all they like but if you don't support it [New Zealand production] in preference to overseas, what are the companies supposed to do?"
Daniel Ellis, spokesman for Cadbury Australia and New Zealand, said the company's decision to close one factory in New Zealand and another in Australia, and make all chewy lollies in Thailand, made sense financially.
"Commodity costs of things like sugar and cocoa have skyrocketed since the global financial crisis. When times are tough, investors put their money into raw commodities ... in the past two years, cocoa has doubled.
"We can either change the way we operate behind the scenes, which is what we're doing, or we can pass that cost on to the consumer. That won't work."
These increases drive shrinking portion sizes. Last year, Nestle's Milo (made in Australia) packets were "adjusted", according to a spokesman.
Ellis believes there is a strong psychological connection between the Cadbury brand and its fans.
"Chocolate and lollies are things you turn to when you're happy and again when you're not so happy.
"If people don't like the change, they can't make their way back to that place."
Consumers say that since being in Thailand Minties are softer and the recipe has changed.
Not true, says Cadbury New Zealand managing director Matthew Oldham. The Thailand factory's new machinery altered the sweets' extrusion process, making the lolly softer, but using the same ingredients.
The softer lolly caused the mint flavour to leach into the mouth faster so the flavour was weaker. The next batch have been given a mint boost.
While many Cadbury's snacks have gone across the Tasman, Australians will be eating our chocolate within months.
All assorted boxed chocolates will be made in Dunedin and exported. Also, Aussie-made bars will have a large amount of New Zealand base product and there are rumours that suggest a boost in the sale of New Zealand favourites from a contract with a major Australian chain.
New Zealand-made products will be judged by the Australian palate next year.
Biscuit-makers Griffin's are planning to move the production of cream-filled biscuits to a factory in Fiji. However, spokesman Barry Ackers would not reveal which biscuits were on the list.
In the past three years, Griffin's has invested $140 million in a "growth programme" including an overhaul of its Auckland factory. Their top five sellers, Cookie Bear biscuits, Huntley & Palmers crackers, wine, toffee pops and gingernuts biscuits are made in New Zealand.
Heinz Wattie's has 1400 lines of produce with 55 per cent of New Zealand production exported. Its cans of baked beans and spaghetti are made in New Zealand and "core frozen vegetable products" are grown on the Canterbury Plains.
New Zealanders have been vocal about their likes and dislikes but when it comes to food, it's clear a change is nowhere near as good as a holiday.
- © Fairfax NZ News
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