Cadbury backlash a victory a rivals

Consumer backlash at Cadbury’s decision to shut its Dunedin factory could be a boon for the company’s competitors.

Since it was revealed that the factory is set to close next year, culling hundreds of jobs, a boycott movement has taken off and actor Sam Neill has encouraged New Zealanders and Australians not to buy Cadbury’s products again.

University of Auckland marketing expert Bodo Lang said it was another in a series of blows to Cadbury’s brand reputation.

Although it stopped using palm oil and restored the size of its family blocks following pressure from consumers, the damage was done.

The furore is a golden opportunity for local brand Whittaker’s, which only had to stay true to its brand values and tap into the New Zealand psyche, he said.

‘‘Negative consumer reactions are inevitable as will be more price discounting by Cadbury.’’

He said Nestle could also benefit if it became more active in the New Zealand market.

‘‘Whatever will happen, the battle for New Zealand chocolate lovers has just entered the next round.’’

Lang’s colleague, Mike Lee, said the outlook for the Cadbury brand depended on a range of factors.

‘‘If a consumer doesn’t trust Cadbury HQ, then some research shows that up to 25 per cent of such consumers will boycott the brand, and further 7 per cent of nonconsumers will definitely not purchase Cadbury, even though they were not fans before,’’ he said.

‘‘The situation is also particularly bad when a factory relocation damages the identity of the local region, which in this case it does.’’