Home Uncategorised Cadbury's owner Mondelez sees NZ business shrink 29 per cent

Cadbury’s owner Mondelez sees NZ business shrink 29 per cent

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The local sales of Cadbury’s owner Mondelez have taken a knock following the closure of its Dunedin chocolate factory last year.

Mondelez New Zealand’s total sales fell 29 per cent to $212 million, in the year to the end of December, from $297m in 2017, according to accounts filed with the Companies Office.

About $60m of that $85m drop appeared to be the result of the loss of exports to other companies in the Mondelez group.

But the remaining $25m decline appeared to be caused by other factors which may include Kiwis reducing their spending. Mondelez did not comment on whether its sales figures might reflect a consumer backlash from the factory closure.

But Mondelez New Zealand managing director Cara Liebrock said there were “a range of factors” separate to the closure that impacted its revenues last year.

These included changes to customer inventory management and the closure of the Cadbury World attraction in Dunedin “which was unfortunately out of our control”, she said.

“Our business continues to perform strongly in New Zealand. We’re committed to investing in our Kiwi team who work closely with thousands of local retail partners to support their growth,” she said.

“We’ve increased our investment in our business in 2019 with some new team members joining the business and we’re seeing some great results across both our new products, and much loved Kiwi brands.”

A spokesman added the company continued to employ more than 100 Kiwis “and sells more confectionery – and chocolate – than anyone else in New Zealand”.

Cadbury rankled some consumers over the past several months with changes to some of its best-known product lines, such as Roses chocolates and its marshmallow Easter eggs.

This year it reduced the size of some of its “king sized” chocolate blocks by 10 per cent, to 180g.

Worldwide, chocolate sales have periodically dipped – for example in 2001 when children were reported to be preferring to spend their money on mobile phones and text messaging, and again in 2015 and 2016.

But they have since returned to a rising trend.

Speaking to a former employee of Cadbury, she said the staff are totally disillusioned at the bullshit being put out about the reason for shifting to Melbourne. Cadbury stated that the processing equipment was outdated and it was cheaper to manufacture from Melbourne than replace the equipment in Dunedin. Well it turns out that the equipment in Dunedin was taken to Melbourne, and is being used to manufacture the same products as before.

If any budding business person ever wanted to see how not to run a business, then this is a classic. You do not continually piss off your clients by changing the composition, flavour, and size of your products and expect sales to continue.


16 COMMENTS

  1. Another bullshit PR job.
    Why do people lie?
    They are dumping crappy product into the super markets, buying thier space and like Milo they are losing.
    Milo went from No.1 brand in NZ to nothing anymore.
    Cadbury’s is going down the same track.

    The worst part is that what was made in NZ and the component that was exported has now all been replaced with imports which are going to get dearer and dearer as the dollar drops.
    NZ loses with their behavoir.
    They will be fiddling their taxes as well so all round the NZ consumer and taxpayer should just not buy their product.
    Nett result we would all be better off.

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    • I haven’t bought Milo since they changed the recipe and stopped buying Cadbury when it became an oily mess with the addition of palm oil. Dark chocolate is my preference, and deliciously melts in hot milk for a hot chocolate.

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      • Milo is hideous stuff made by Nestle.
        Haven’t forgiven Cadbury for messing with Bournvita, then they messed with dairy milk and they are off my shopping list now they’ve ruined Roses too.
        Whittaker’s chocolate is better, but Lindt is ace in my view.

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  2. An excellent example that big business can make major f-ups and can die as a result. However, unlike the government, they don’t have the generous tax payers or rate payers to prop them up (unless you’re Goldman Sachs & Co.).

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  3. “You do not continually piss off your clients by changing the composition, flavour, and size of your products and expect sales to continue. “

    You certainly do not just keep producing the same product with the same size at the same price, all the time paying higher costs and expect to keep making a profit.

    Even large businesses make mistakes but they own the business, they pay for the mistakes.

    If I was Mondelez I would have got the fuck out of Dunedin (and NZ) as well.

    Not sure I would have gone to another small-minded communist country though.

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    • No you just keep making the same product and size and recipe and ut the price up when you need to.
      Wait to see if sales fall or pic up again.
      Don’t ruin your product then expect to see good sales!
      I will never touch Cadburys again, and never buy Milo now as it is full of sugar.
      We can add sugar if we want to!

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      • Havn’t bought any Cadbury products since Dunedin’s closure, Whitakers & Nestle chocolate taste real good, Cadburys was awful, perhaps the Aussie taste buds ca’t tell the difference between quality chocolate and brown oily shit.

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        • I haven’t bought any chocolate products at all except for a small bag of chocolate pieces to sprinkle on my ice cream. One year later I’ve still got 90% of the bag left.

          Wouldn’t know the difference and I bet those fat slags I see stuffing trollies with chocolate at the supermarket wouldn’t either.

          I suspect any serious reduction in revenue has been more due to fashion and dietary fads than any anti-Cadbury movement.

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          • Once upon a time, Cadbury was NZ’s most trusted brand (according to Reader’s Digest). In 2007, Cadbury was the most trusted brand fives years in a row.

            http://www.scoop.co.nz/stories/BU0705/S00650/cadbury-named-nz-most-trusted-brand.htm

            I’ve found it difficult to determine when they dropped, but certainly in 2010 they weren’t doing so well reputation-wise according to NBR.

            So, it appears that Cadbury has been suffering for some years and quite possibly represents a sustained anti-Cadbury movement.

            (Whittakers was 2018’s most trusted NZ brand according to Reader’s Digest).

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            • I’m not sure about the date, but it was when it was found out they had dropped the cocoa and cocoa oil and substituted palm oil and more sugar, and then said that kiwis liked the new taste, and then said that they had removed the palm oil. Liars, no one believes them.

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              • 2009 was the year of the big palm-oil scandal. They’ve simply never recovered from that, with Mondelez intent on detonating the brand’s goodwill. Cadbury in the UK is going through similar convulsions under Mondelez ownership.

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          • “I suspect any serious reduction in revenue has been more due to fashion and dietary fads than any anti-Cadbury movement.” I believe our per capita chocolate consumption hasn’t decreased – it’s still among the highest in the world. That, and the rise in Whittaker’s fortunes over the last few years, might disprove your notion.

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      • Cadbury products are banned in our house. The last straw was when the bloody awful Aussie-made Roses started circulating here. We’ve voted with our wallets and support Kiwi brands such as Whittaker’s and Rainbow Confectionary. The products are far superior anyway.

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    • They broke the first rule of selling. You put the price up. People will tolerate inflation, but if you start stripping out the quality and/or quantity they feel ripped off and their faith in the product is detonated.

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  4. Lindt for me as they refuse to make their chocolate halal. UK Cadbury tastes better than the crap served here. Italian chocolate rocks too

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