Mondelēz invests $2.9m in Cadbury 'Spider' production in Austrailia

22-May-2017 - Last updated on 23-May-2017 at 10:51 GMT

Cadbury has the largest share in Australia's chocolate confectionery market. Photo: Mondelēz

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Mondelēz Australia has invested around $2.9m in its Hobart, Tasmania, factory to produce two new lines – Cadbury Dark Milk and Cadbury Dairy Milk Marvelous Creations Spider – with new equipment.

VP for operations across Australia, New Zealand and Japan, Amanda Banfield, said the company has an AUD 25m ($18.69m) annual investment fund for its Hobart plant to improve product development.

“The fact that we can bring to life two brand new products here in Tasmania is a testament to the Claremont site (a suburb in the greater Hobart area),” she said in a statement.

Mondelēz recently introduced Cadbury Dairy Milk Marvelous Creations Spider sharing size for the first time in Australia with three flavors, including raspberry, orange and lemonade. Each variety retails for $3.73 at all major retailers across the country.

Redevelopment of Dunedin tourist attraction

The announcement of the Hobart investment came shortly after the snack giant decided to cease its production at its Dunedin manufacturing site in New Zealand.

The closure is slated for early 2018, but Mondelēz is considering a $3m in redevelopment of Cadbury World, a tourist attraction adjacent to the Dunedin factory.

Cadbury World currently employs 35 people and attracts about 110,000 annual visitors. Mondelēz hopes to increase visitor numbers to 180,000 under the possible redevelopment.

“No final decision on the redevelopment has been made, although feedback from stakeholders and the community has to date been largely positive,” external affairs manager at Mondelēz Australia and New Zealand, Jake Hatton, said.

Mondelēz expects the redeveloped Cadbury World to open in late 2018.

“We’ve already invested about $1m with local suppliers in structural refurbishing of the Old Dairy (The Cadbury World), and we are committed to ensuring that the majority of the remaining budget for the redevelopment will be spent with local contractors,” Mondelēz’s plant manager, Judith Mair, said in a statement.

Trendy flavor combinations in Australia

A recent report from Euromonitor showed that chocolate confectionery posted value growth of 4% in 2016 in Australia, and chocolate pouches and bags continue to perform well with 6% current value growth during the period.

Mondelēz Australia released products such as the Cadbury Dairy Milk with Oreos during the year in response to Millennials’ increasing demand for flavor combinations, according to Euromonitor.

“The combination of sweet and savory flavors has also been particularly prominent in chocolate confectionery within standard and premium varieties. For example, Lindt Creation Luscious Coconut, Cadbury Dairy Milk with Salted Caramel, Nestlé Milkybar with toasted coconut flakes, Darrell Lea bb’s with peanut,” Euromonitor said.

Data from the market research firms shows that the Cadbury brand has the largest share retail value within Australia’s chocolate confectionery market, followed by Lindt, Darrell Lea, Nestlé and Mars.