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$20 Million Expansion of Dunedin Plant

MEDIA RELEASE
Embargoed until Noon
Wednesday, 29 November 2006

Cadbury Confectionery Announces $20 Million Expansion of Dunedin Plant

Cadbury Confectionery Limited today announced the company will be involved in a NZ $20 million expansion of its factory in Dunedin, New Zealand.

This investment will be used to expand the chocolate crumb processing facility to meet forecast growth in demand from the Asia Pacific region. The expansion will enable the factory to treble its production of crumb, a key ingredient used in the manufacturing of chocolate.

According to Mark Smith, Managing Director, Cadbury Schweppes Australia & New Zealand, this investment is further evidence of Cadbury’s commitment to the future of the Dunedin manufacturing site.

“This new state-of-the-art facility will position Dunedin as a leading source of chocolate crumb for Cadbury Schweppes in the Asia Pacific region, which has enormous potential for growth.

“As part of our investment here, Cadbury will establish a global crumb research and development centre at Dunedin. This site will become a centre of excellence for innovation and development of crumb,” Mark Smith said.

Cadbury Schweppes will invest NZ $18 million on new buildings, plant and environmental work, while the New Zealand Government through Investment New Zealand’s Strategic Investment Fund (SIF), is contributing a grant of NZ $2 million towards the research and development centre.

“We’re very appreciative of the New Zealand Government’s grant which will be used specifically for establishing the research and development centre.

“We’ve been working with the SIF to secure this funding. We’ve chosen to invest in New Zealand, and in particular, in Dunedin because the plant is already highly efficient, and we have access to quality ingredients, such as fresh milk,” Mark Smith said.

Much of the material used for the expansion will be sourced locally. Construction of the crumb facility will begin immediately and it is expected the plant will be ready for production in October 2007.

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CADBURY CONFECTIONERY LTD
DUNEDIN, NEW ZEALAND

BACKGROUNDER

- Cadbury Dunedin is part of the Cadbury Schweppes group, the world’s largest confectionery company, which also has a strong regional presence in beverages in the Americas and Australia. With a history stretching back more than 200 years, today Cadbury Schweppes employs around 60,000 people and its brands are enjoyed in almost every country around the world.

- Cadbury Dunedin is the largest chocolate manufacturing facility in New Zealand, employing 600 full time staff, and up to an additional 200 temporary staff during peak times.

- The factory is highly diversified and incorporates a number of different manufacturing technologies which enables the supply of a wide range of products for the New Zealand market. The factory also supplies product to the Australian market.

- Dunedin manufactures some of New Zealand’s most loved brands including Cadbury® Dairy Milk™, Cadbury® Moro™, Cadbury® Pinky™, Cadbury® Roses™ and Cadbury® Crunchie™.

- The site manufactures moulded (block) chocolate, boxed chocolates, chocolate bars, Easter eggs, seasonal novelties, chocolate cookery, chocolate drinks, Bournvita and industrial chocolate as well as nutritious snacks under the Mother Earth brand.

- A major part of the Dunedin business is producing chocolate crumb used in domestic chocolate production and exported to Cadbury factories in Australia, Pakistan and China.

- The Dunedin factory is home to Cadbury World, a chocolate experience which attracts over 100,000 visitors per year, and is seen as an important part of Dunedin’s tourism industry.

ENDS

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