Cadburys Australia receives $59mn investment – but jobs will go

By Andrew Woods
Cadbury’s Australia has received $59mn in investments from its parent company Mondelēz International, but 50 jobs will be lost as part of the shake-u...

Cadbury’s Australia has received $59mn in investments from its parent company Mondelēz International, but 50 jobs will be lost as part of the shake-up at its Claremont plant. Mondelēz is embarking on a cost-cutting drive, which will involve job losses at the Tasmania plant, as it aims to boost efficiency through investment in new technologies, equipment and automation. A specialist training program has also been scheduled for staff as the company battles rising costs and increasing competition.

Mondelēz area vice president Amanda Banfield said: “Our team here has worked hard to help us become more efficient, cut costs and improve our competitiveness and as a result, we’ve reduced the cost of converting raw materials into a block of chocolate by 12%.

Related stories:

Read the latest issue

“But while progress has been made, increasing local and global competition, low domestic growth, rising costs, and Australia’s distance from overseas markets make it difficult to compete against the likes of European factories with lower costs.

“To remain competitive, we need to improve our conversion costs by 30%,” she added, “as we continue to raise the bar as competition increases further.”

The Claremont factory in Hobart was the first to be set up by Cadburys outside of the UK, when it opened in 1922. This summer, Cadburys announced that it was to dispense with the Fairtrade logo on its packaging as it set up a similar initiative called Coca Life.

Parent company Mondelēz International saw its net revenue decrease by 5% during the second quarter to $5.99bn, which it blamed on the global cyber attack last June, which caused major disruption to its shipping and payments systems.




Featured Articles

Careers Passport: flagship programme to help jobseekers

A fast-track job scheme designed to remove barriers to enter the food and drink industry has seen over 1,000 training opportunities created.

Coca-Cola, Diginex & Reckitt tech to support supply chains

Respect for human rights is critical to good business, says Coca-Cola’s Paul Lalli, as the company joins diginexLUMEN to catch supply chain forced labour

Luxury food manufacturer Venchi on sustainable packaging

Cècile Osti, of luxury chocolate manufacturer Venchi, on Easter 2022, Sorrento lemons, sustainable packaging, natural ingredients & the pleasure of food

How has the pandemic affected sales at General Mills?


Morrisons partners with Nestle in sustainability scheme


PepsiCo Launches pep+ a Strategic End-to-End Transformation