Cadbury closure leaves 134 jobless

Keikantse Lesemela | Friday August 29, 2014 16:19

 

Mondelez said it had to focus its resources on larger scale manufacturing facilities where it can generate greater efficiencies to reinvest in growth.  In the press statement, the company said the exercise is part of the company’s global transformation strategy to focus their snacking portfolio and reinvent its supply chain.

“The decision was taken as demand for pellet gum produced in Botswana has dropped over the years as there has been a shift in the gum consumer market towards a preference in slab gum,” reads the statement.

In a response to BusinessWeek enquiries, Manager for corporate and government affairs: Southern, Central and Eastern Africa at Mondelez International, Navisha Bechan-Sewkuran, said the intention to cease manufacturing was taken after careful deliberation and extensive due diligence.  He said they realised that the demand for pellet gum produced in Botswana has dropped over the last period, as there has been a shift in the gum consumer market.

Bechan-Sewkuran explained that the company is currently negotiating with the affected employees and their representative body.

“In keeping with our values, we are a company which treats its employees with fairness and respect. We adhere strictly to national labour laws and regulations, as well as international best practices; we will do what we can to support affected employees through this transition period,” she said.

In April, Mondelez announced the closure of a small specialty chocolate manufacturing facility in Namibia. Bechan Sewkuran said globally, the business is focusing its portfolio and reinventing its supply chain.

However she said the Botswana market continues to be essential to the Central and East Africa business, which is focused on explosive growth in the region.

“We recently renewed our contract with a long standing local distributor to grow the commercial business in the country. 

As part of this relationship, we will explore opportunities to transform the environment from a predominately chocolate and gum retail environment to a total snacking retail environment,” said Bechan-Sewkuran.

Cadbury acquired South Africa’s leading chewing gum business from Botswana-based Dan Products in 2006, which was producing and selling Stimorol, Dirol Brands and Chappies.

Mondelez has operations in 165 countries and is a renowned manufacturer of chocolate, biscuits, gum, candy, coffee and powdered beverages, with billion-dollar brands such as Cadbury, Cadbury Dairy Milk and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered beverages and Trident gum.