-
Chocolate on production line - Source: ONE News -
Watch Video
-
Related
Cadbury has learned a valuable brand lesson after introducing a new ingredient to its chocolate, says New Zealand managing director Matthew Oldham.
Cadbury in May launched a new recipe which replaced cocoa butter with vegetable fat, including palm oil.
Palm oil has been linked with deforestation of native habitat in developing countries.
Soon after the launch Cadbury received upward of 1,000 complaints on the new recipe and other changes it had made.
"I think it's a reflection on the brand of Cadbury, what people feel about that brand. They have a lot of closeness and love and trust for the Cadbury.
'We all grew up with the products so when a change was made that didn't agree, I think it reflects the strength that the brand has," he says.
The palm oil was used to make the chocolate slightly softer and more affordable.
The palm oil was also sustainably sourced.
"But the public pretty quickly got off the mark and said sustainable or otherwise we don't want vegetable fats and palm oil in our chocolate...and it got to the point where we realised that we had to change," he says.
Oldham says only a small amount of palm oil produced is sustainable, less than 1% of the total produced world wide. However, only a small amount of that 1% is purchased, leaving plenty of availability for other buyers to use sustainable product rather than the uncertified product.
But he says if people do not believe there is such thing as sustainable palm oil, or do not want the ingredient in its product, the company needed to listen.
He says the reversal of the decision to use palm oil has not cost the company a significant amount of money but it has learnt a whole lot about changing something people love.
"No amount of consumer research, which we did a lot of, can actually replace trying things in the market," he says.
Cadbury expects it will be several weeks before the new chocolate bars using the old recipe are on the shelf.
To see Matthew Oldham's interview with Breakfast host Paul Henry, click on the WATCH tab.
