It was borne out of the collapse of Cadbury, but a Dunedin chocolate maker is trying to avoid bitter times ahead.
Ocho opened its factory doors a year after confectionery company Mondelez closed the doors to Dunedin's Cadbury factory in 2018, with the loss of 350 jobs.
The new company was supported by investors via the crowd-funding platform PledgeMe. It took less than 48 hours for Ocho chocolate to raise $2 million.
Fast-forward a year and things have changed dramatically for the chocolate maker.
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Jim O'Malley, who led the campaign to expand the company, said the nationwide lockdown had caused revenue to drop by as much as 80 per cent.
That was partly driven by many of their retailers linked to the tourism industry, which had been hit hard by the Covid-19 pandemic.
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Ocho chocolate in Dunedin
And signs of recovery were slow, with the market for the boutique chocolate expected to pick up again at Christmas, while some lines could be another year away.
O'Malley said the company was forecasting a drop in predicted sales from almost $1m to a new forecast of $570,000, and a projected loss of $223,000.
That was a disappointing turn of events given at the start of the year Ocho was growing at 35 per cent annually, and was on track to record the first profitable year.
Hamish McNeilly/Stuff
Jim O'Malley working to set-up a new factory after the demise of Cadbury.
In an effort to stem predicted losses, the company had disestablished a general manager's role and reduced work to a four-day week.
That new plan would take effect on Monday, with the Dunedin-based store and tasting room to reopen on Thursday.
O'Malley, who has a background in the pharmaceutical industry and is a current Dunedin City councillor, would step into the role as managing director.
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May 25, 2020 at 01:00AM
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Covid-19 bitter blow for fledgling chocolate maker - Stuff.co.nz
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