Own The Factory
Amount Pledged: $3,513,448
As at 8pm, 9 June, 2017
To have an understanding of the level of public support for “putting our money where our mouth is” Mondelez have given us two weeks to ask you if you are willing to make an investment in keeping industrial scale confectionary and chocolate manufacturing in Dunedin.
Show us your level of support by filling out the form below.
Do you want to Own The Factory?
Who are We?
Dunedin Manufacturing Holdings is the name a group of volunteers organised by Jim O’Malley are using while we move forward to raising the capital we need to save the manufacturing capabilities in Dunedin. We are looking for members of the public to invest anything from $50 upwards into a company that would be owned by the public. If there is enough public support to do this then a formal company filing will occur. At that point, a board will be formed and a name chosen for the company will be chosen from competition we will run at the end of this assessment period
What do we need to do?
Dunedin Manufacturing Holdings (DMH) needs to raise $20 million to buy plant and buildings to establish confectionary production capacity inside the existing Cadbury’s plant in Dunedin. Unfortunately, we do not have much time to raise this money. DMH has asked Mondelez for two weeks to gauge community support for the fundraising component of this proposition. Depending on the level of support expressed DMH will propose to move forward with raising the capital funds or will withdraw at that point.
What will we get for our money?
If we can raise the capital we will have enough to buy the plant that is used to make Jaffas, Pineapple Lumps, Milk Drops, Caramels, Buzz Bar, Chocolate Fish, Pinky Bar and Perky Nana. We will be in a position to buy 336 Castle St. and would be able to move all of the production inside that building. Once we have moved to the building and production has started in late 2018 the company will go through three phases
1)Stabilisation, 2) Expansion and 3) Growth
By owning a running factory staffed by Cadbury workers we will be in a position to bid for the Third Party manufacturing of the Mondelez products. Winning this would give us enough income to employ the staff to run one shift (15 people) and the necessary support staff (10 people). The income generated from the manufacturing will be small and by itself would not be worth the investment. But the equipment can be used to add an additional 2 shifts and allow us to move to the next phase. We will be in a factory we own and the lights will be on.
Our arrangement with Mondelez will not allow for competing manufacturing inside New Zealand or Australia. But there is no limit put on us when it comes to exporting these products, provided we use a different name. For example exporting the bright red Jaffas to China as good luck candies. With a strong marketing push, we plan to open up production into the two shifts that are available to us without the need for any additional capital investment. The expansion can then fund the final stage.
Our long-term aim is to get back to chocolate production. Using the income generated from the expansion phase we will invest in re-establishing chocolate production on the site. At that point, we will be in a place where we see significant growth potential.