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War has broken out in our supermarkets. Once happy confectionary bars are now slugging it out in an all in brawl to the finish. It isn't a fight we can easily ignore because it concerns our most sacred food – CHOCOLATE. This is not the usual petrol price extortion or unsinkable floating mortgage rates drama. This is the smooth creamy taste that gets us through a dull work day and eases the pain of recession. A friend to watch sad movies with, and provide a tasty distraction from what ever it is we want to be distracted from.
If this were petrol we were talking about, the mere hint of conflict would have doubled the price in a week. Yet there is no danger to the chocolate supply here. If we want to we can pull up a couch, unwrap a block and munch away watching with idle curiosity from the sidelines. Before we do that though we need to remember that CHOC WARS is not just about Whittakers v Cadbury, Kiwi v Aussies, little v big, local v foreign. It’s about profit. Profit is paid by us. It is the difference between the price we pay for stuff and what it really cost to make it. The profit motive often drives supposed business rivals into bed with each other in what can become an unofficial united front in fleecing the punters. Profit first – competition second. A casual glance at petrol prices or mortgage rates reinforces this argument.
This spirit of profitable cooperation has been going on for years. Remember (if you are old enough) the introduction of the metric system in the early 1970’s. The food packets in the supermarkets were transformed into new 'Metric Packs'. The only consistent thing about these new packets apart from the word 'metric' was that the quantity was less than what we got in the old packs but the price was still the same. The fact that all the manufacturers did it meant with safety in numbers the consumer had no choice but to 'bite the bullet' and carry on.
Remember not that long ago when potato chips came in 190g packs and over a short space of time everyone shifted to 150g, but no one told the pricing department who obliviously carried on charging the same for 20% less product. To add salt to the wound so to speak, they came up with weirder flavours and put them into even lighter packs for a higher price. Pure profit genius. We won't even get into the beer cans and bottles that shrunk by 30ml.
The manufacturers behave like they are in a yacht race. One boat goes off in search of more wind (profit) the other yachts keep an eye on it. If they see its going faster than them (making more money) then they change course and join it so they can all take advantage of this new wind shift.
Outwardly they are all supposed to be competitors, yet they manage to move together like a school of fish. Or in the case of petrol suppliers – gold medal winning synchronised swimmers. Seldom does a manufacturer break ranks with the others for richer returns and the others don't follow.
So now the giant Cadbury has made its move. Reducing the size of their king size chocolate bars, altering the recipe and changed the packaging. All with little discernable change to the price. Whittakers - the other main local rival for that class of chocolate bar – would normally be expected to follow suit and tack off to join Cadbury in profit paradise. Not this time. Instead they have looked at the market and seen a wind shift of their own in another direction. Not only have they held their ground but they have gone on the attack with hard hitting advertising unsubtly pointing out the differences between their bars and Cadbury's. I hope there is no one in the upper echelons of Cadbury with the personality type of Mr. Weatherston. They might have an extremely violent response to having inferior size comparisons so mockingly made public.
A kiwi company taking on an international giant is not always the smart business thing to do. Remember what happened when Georgie Pie had a crack at McDonalds head on? McDonalds out-discounted and out marketed them. When Georgie were on their knees Maca's bought them and shut them down. On a cold winters day many of us still hanker after a tasty steak n' cheese. If only Georgie had kept their head down we could still be enjoying them today.
So are Whittakers brave or stupid? To go against a company with annual revenue of NZ$14 billion is a risky venture. Will they go the same way as Georgie Pie? Is the Peanut Slab in danger of extinction?
For once the answer is not in the hands of the clever marketers and multinationals it is in the hands of us. We have a choice - standing there in the supermarket aisle deciding which block of chocolate to buy will decide the outcome of this war. Cadbury or Whittakers - whose side are you on?
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Comments
Whittaker's are NZ made, the
Whittaker's are NZ made, the dark varieties are vegan and they don't use genetically modified ingredients - so the choice is very easy. If they'd use fairly traded cocoa I'd be sold forever. Because they don't I often buy fairtrade organic chocolate.
Cadbury: Before its demerger Cadbury-Schweppes was one of the world's largest food companies and it still is the biggest player on the confectionery market (or maybe the second biggest beside Mars-Wrigley) - why would I throw my money at a company that doesn't care if it sells chocolate or car tyres? I always prefer to support the underdog. And, of course, Cadbury never committed to not using genetically modified ingredients.
By the way, there's an interesting book about the chocolate wars between Hershey and Mars: http://www.amazon.co.uk/Chocolate-Wars-Inside-Secret-Hershey/dp/000653239X
Also: Because you mentioned chocolate I had to go and EAT some. BAD BLOGGER, BAD!!!
Enjoyed your input Sabine. I
Enjoyed your input Sabine. I agree it would be great if the choc makers used more fair trade cocoa. Definately a market for it. Thanks for the tip on the book. I will check it out.
From now on I will be buying
From now on I will be buying locally. I will be buying Whittaker and I will be doing my damdest to get my friends and family to as well. Cadbury can take a flying leap with their smaller but still the same price as Whittaker bigger block with more cocoa.
Go Whittakers!
It would be a sad day for me
It would be a sad day for me if Whittakers went under. A Swiss friend of mine, widely travelled, declared it the best chocolate she had eaten outside of Switzerland. I think the South Island milk has something to do with it. They have cleverly made slight variations in their chocolate recipes to complement different types of nuts and fruits. I don't mind paying more for "real" chocolate. Whittakers have been making chocolate for a long time. I hope they can keep out of trouble, avoid extending themselves too far or compromising quality. And I hope NZers retailers and consumers stay loyal to this brand. The article's author is right. Their fate might lie with us, the chocolate buyers.
I started buying Whittakers
I started buying Whittakers awhile back, I have no interest in going back to Cadbury's inferior product.
I hope Whittakers do well, I think their advert is working....
Cadbury had a winning
Cadbury had a winning recipe, winning product, and NZ-made. Then the Australians took control of the NZ business and it changed to be just another Aussie-run factory. Then they 'rationalised' the production run and dropped the NZ block, replacing it with the much poorer Aussie block. Whittakers should now be able to grab and hold the majority of the market.
Let's face it: as far as the Asia-Pacific Cadbury group is concerned, the New Zealand market isn't that big to be overly bothered about. That, and the Aussie decision-makers have no clue about the discerning taste of the NZ consumer!
Good points Purple Refugee.
Good points Purple Refugee. Rationalising production makes profitable business sense, but only if it doesn't fly in the face of what the customers want.
Not a smart move
Not a smart move environmentaly to go with Palm Oil (Cadbury)... don't they notice, people do care. No more Cadbury for me
Yeah the palm oil thing is
Yeah the palm oil thing is interesting judgement. I guess they are hoping it just blows over. People that care about the environment have long memories regarding companies that put profit before the planet. And a lot more consumers care where thier food comes from now.
i would go for wittakers
i would go for wittakers chocolate bigger size than cadburys
Nice article. I think there
Nice article. I think there is a strong consumer revolt against Cadburys and the damage they have done to their brand is immeasurable. Palm Oil. And then they try and defend it. What were they thinking...
Thanks Stu. If Cadbury were
Thanks Stu. If Cadbury were being smart they would have slipped the palm oil in quietly.Instead they downsize the bar, change the packaging and when everyone is focussed negatively on that they announce that they are using palm oil now. Its like they have some kind of death wish. A growing number of peole put the environment first. Their wishes can no longer be ignored.
OMG i just like started
OMG i just like started eating the creamy milk chocolate made by whittakers, this is my first time and how amazing it tasted!!!!. ITs the best chocolate iv'e ever tried cos the only chocolates i had ever had was Cadbury, whittakers peanut slabs as well as hershy kisses Oh and that tolberone, which is not worth the cost!!!! swiss chocs dont always mean top choc cos the best quality tasting choc is made here!!, GOOooo WHITTAKERS
Yes the Big Boys across the
Yes the Big Boys across the ditch have not learnt that the KIWI can bite.But I am sure that in the very near future this will become obvious to them. We like our chocolate to be chocolate and we like our suppliers to be honest. Whittaker's is the way i will be going a true taste of chocolate and more environmentally safe we do care about our world. Just tell them to watch the ads for a certain brand of beer if they wish to know about Kiwi`s attitude to the big bullies.
You are right Gazza. Kiwis
You are right Gazza. Kiwis seem to be good at digging their toes in when getting pushed around by a bigger outfit.
To be fair, the Aussies are
To be fair, the Aussies are only doing what the Cad head office is telling them to do... But still, their choc sucks - and I don't mean that in a good way!
Cadbury tried to deal to
Cadbury tried to deal to Whittakers at least once before by having the arrogance to take them on with their version of a peanut slab. They failed miserably. Being a global multi-national doesn't always guarantee local dominance, and Whittakers success is a great example. Cadbury doesnt care much about the local market actually. They're much more interested in growing their presence in China and India. Thankfully we have a much better product available to us in Whittakers, so no loss. It's a shame in one way - Cadbury was once autonomous in the local market, a great company to work for, and did a wonderful job understanding local consumers, producing the products New Zealanders loved. Now they import the products Australians love.
My first trip to Oz in 2000
My first trip to Oz in 2000 I bought a bar of Cadbury Dairy Milk near a Sydney train station. After one bite I threw it in the nearest bin...the only time I ever threw away a bar of Cadbury's Dairy Milk chocolate. I have tasted many different chocolates in a number of European countries and NZ's Dairy Milk was always the best. I have not eaten Dairy Milk for quite a while but if we now have the Palm Oil version already in our bars...I'll probably not eat it again. Shame on Cadbury, trying to pinch a few pennies. Wonder what your sales are gonna be in a years time?
Thanks for the comments
Thanks for the comments Kiwiboy. It will certainly be interesting to see if there is a sustained market swing to Whittakers or if it this episode will just be a temporary blip on Cadbury's sales chart
I have been campaigning to
I have been campaigning to Cadbury for weeks now. Am a chocoholic who always dreamed of visiting the factory in Dunedin (even though I'm now 30 I still wanted to go!)
Unfortunately for Cadbury I am also a passionate Orangutan Conservationist/environmentalist/greenie.
So double whammy for me that my fave choc now tastes awful, and they are helping to destroy the habitat of the Orangs!
My facebook group "Take Palm Oil out of Cadbury chocolate" has close on 2000 members, and my petition about 1400.
We are trying to put the pressure on Cadbury to grasp this opportunity to turn things around - they have the power to set a precedent for the rest of the world by either not using Palm Oil, or proving beyond a shadow of a doubt that they are using 100% CSPO!!
I just read an article out today where the big head of the company says their sales are up since the change? I find that very hard to believe considering I've been investigating this issue very widely for weeks and have yet to find a single person who likes the new chocolate better!?
Carly, Thanks for sharing
Carly, Thanks for sharing what you are doing. Interesting your comment about Cadburys saying their sales were up. I know they dumped the old stock off cheaply to make way for the new recipe. It is possible that has boosted the sales. All the best with your campaign and petition.
Wassup guys, interesting I
Wassup guys, interesting I came across this article on Twitter.
I'd like to add three other sources for this conversation.
www.choclover.org - another website built to aggregate all conversation about Cadbury Boycott ,
www.choclovers.com - Cadbury's answer to the issue.
and
http://www.abc.net.au/news/stories/2009/08/05/2646364.htm?FORM=ZZNR ABC News coverage about the issue.
I don't know whom to believe.
Michael
I've noticed the changes in
I've noticed the changes in the Cadbury products right from the start and especially the change to palm oil puts the cadbury products at the bottom of the shelf for me.
@Michael, I'll keep it short to stay on topic. If you seriously believe that industrial initiatives in such countries mainly benefit the locals do a search for erwin wagenhofer 'lets make money' and 'we feed the world' . Those are 2 excellent , factual documentaries on the subjects of global imbalances.
Yes, the palm oil helps the locals to a small extend. But it helps global companies - that you and I may even own shares of - even more.
Regards
Tobias
Thanks very much for the
Thanks very much for the input Tobias. Often a lot of smoke screens are put up to justify exploitation.
Cadbury's knocked themselves
Cadbury's knocked themselves off my shopping list for good in one easy step. You can't take an iconic brand, products that have been favourites to many of us for 30+ years and suddenly make the formula different - and the size smaller - and expect the same loyal following.
The new chocolate doesn't taste as nice. The packaging and size reminds you second by second of just how you're being ripped off. Especially since the huge, shiny Whittakers bars are right next to them on the shelf, with variety and value beaming from every gold-packed inch.
That's the comsumer side - they destroyed the products we loved and made them smaller - game over. Competition wins.
And then there's the fair trade argument, which up until recently wasn't even on my radar. That's just the final nail in the Cadbury's chocolate coffin. Their iconic brand is no longer recognisable in its tiny, cardboard packaging. They look like cheap swindlers out to make a fast buck.
Unless they formulate a massively spectacular marketing strategy that involves an apology (sorry to take advantage of your loyalty and insult your intelligence) and a return to the previous state of affairs, I estimate they will may fade into obscurity here in NZ.
I don't know if their profit margin will help sustain them, but secretly, I hope not.
i love cadbury bars but they
i love cadbury bars but they are getting too small
Its all about profit
Its all about profit folks.
Big business cuts down the rainforests to get more palms planted for the oil they are now using in their chocolate and probably use the timber for their new packaging!
Its a win win situation as far as Cadburys is concerned. environment and customer be dammed!
Its all about profit
Its all about profit folks.
Big business cuts down the rainforests to get more palms planted for the oil they are now using in their chocolate and probably use the timber for their new packaging!
Its a win win situation as far as Cadburys is concerned. environment and customer be dammed!
cadburys should get real and
cadburys should get real and make the chocolate bigger brought a block the other day on special disapointed
whittakers are best
whittakers are best
whitakers, all night long
whitakers, all night long
I agree Chocoholic. The dark
I agree Chocoholic. The dark choc, caramel is my favourite.
We swapped to Whittakers
We swapped to Whittakers eons ago essentially it is a better product and a funkier range - my chinese friends in Shanghai like to have Whittakers ginger and the Whittakers Kiwifruit bars sent to them!! Cadbury is a faceless multinational run from Melbourne. It is utterly unbeliveable that they have shifted production of the iconic Moro bar to Australia from NZ - utterly unbelievable that kiwis have let them. No cadbury product has graced our home for some years. All power to Whittakers!!!
Thanks for the comments
Thanks for the comments Chinaboy. I have got angry lately with Cadbury's. They switched their Dairy Milk bar to fair trade. Now they have switched the rest of the major labeling of the rest of the range to 'Dairy Milk' with the actual flavour (i.e Crunchie) being secondary. These bars are not fair trade but appear to be cashing in on the goodwill created by having Dairy Milk as a fair trade bar. That is just corporate greed and deception. But they would call it marketing.
'funkier' is a dumb word
'funkier' is a dumb word that New Zealanders like to use.
Let Cadbury have the colour
Let Cadbury have the colour 'Purple', buy Whittakers, they have the Fair Trade, and may I say that the Creamy Milk Chocolate Bar is just mmmmm!
Dark chocolate caramel for
Dark chocolate caramel for me.
We have travelled the world
We have travelled the world and are yet to find better or better value than Whittakers chocolate,, dark for ourselves, peanut slabs for our English daughter-in-law (expensive to ship but always on the wanted list)!
Two questions:
What is it about NZ airports that they want tourists to buy every other countries chocolate product, Whitttakers is SOOOO expensive? Surely this is an opportunity we are missing to educate overseas visitors?
Am I right in thinking Whittakers chocolate is glutenfree? Would be a great help if they labelled it so.
poor poor kiwis, neither of
poor poor kiwis, neither of these make real chocolates.
fortunately for those of us who have been exposed to actual chocolate, we can buy Lindt, albeit at fantastic prices...
Hey Eppie Your'e right - I
Hey Eppie
Your'e right - I also love Lindt choccie esp the gold bar you can buy duty free at AKL Int Airport, put it in the fridge then eat it. Its great BUT it's also $18 a smallish bar!!!!!!! Also it's not alot cheaper overseas either. So apple for apples here - Whittakers is terrific value for a good tasting range. Can you believe our local City Shop up here in Shanghai has some of the Whittakers large block for sale - albiet at 49 rmb per block (about $9 a bar)Whittakers is still our fav and its NZ production and ingredients matter bery much to us.
Eppie - Sounds quite
Eppie - Sounds quite patronising..poor poor kiwis? what does that mean? FYI NZ has any number of utterly 'real chocolates' as you put it. Thats not the discussion point here. Take a trip to central Queen St Auckland at the old Mid City there is a little chocolate shop opp the Subway and they sell NZ boutique chocolates - so a good range at various price points and this store is by no means exhaustive in it's range. Now you to can be 'exposed to actual chocolate' in NZ!