A Dunedin group pulled out of a plan to keep production of Pineapple Lumps, Jaffas, Buzz Bars and Pinky bars local.

Consumers faced a stark choice in whether to buy Jaffas, Pineapple Lumps, Buzz Bars and Pinky Bars, after the owners of Cadbury's Dunedin factory decided to move production to Australia.

The move has angered Neville Donaldson, E tū national industry strategy director (Food), who told Stuff the union was "genuinely surprised" by the decision.

He believed the food giant Mondelez was genuine in finding a third-party manufacturer, but "now I'm extremely sceptical".

HAMISH MCNEILLY/STUFF Dunedin's Cadbury factory.

Donaldson now believed that was a delaying tactic by the company in an effort to retain market share and customer loyalty.

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"We have clearly been duped."

He urged consumers to "think where they spent their money."

"New Zealand customers need to consider when purchasing confectionary whether they want to buy Mondelez and Cadbury products and support the Australian and Asian workers, or whether they want to support the job security of New Zealand workers."

Three companies originally expressed interest in making the Kiwi sweets, but Mondelez spokesman James Kane said on Tuesday it had not found a suitable company. Kane said there would be no changes in price.

"We currently import about 80 per cent of our portfolio into New Zealand anyway," he said.

﻿Dunedin South MP Clare Curran also hit out at the company, saying it was "never serious about keeping some local production".

Dunedin Mayor Dave Cull said "It is disappointing that a local manufacturer could not be found, although I believe Mondelez made a genuine effort to do so.

"As I have said previously, I believe the decision to close the Dunedin Cadbury factory is misguided and that Mondelez has underestimated the contribution of our city to its success."

An existing Australian Mondelez factory will pick up production of all lollies that were made in New Zealand.

Mondelez announced earlier this year it would stop manufacturing Cadbury products in Dunedin in March 2018, with the loss of 350 jobs.

"Unfortunately, we only received one formal response to the RFP documents from a local supplier that was interested in manufacturing the full portfolio of Kiwi products in New Zealand," Kane said.

"We've worked very closely with that supplier over the last six months to try and find a way for them to take on the work, however the unique requirements of these products – particularly the marshmallow based products – meant it simply wasn't possible.

"We looked at a range of potential solutions, from partnering to make the full portfolio, through to offering individual products to potential suppliers."

Dr Jim O'Malley launched the Own the Factory campaign, but his Dunedin Manufacturing Holdings canned its plan in June to take over the local manufacturing of Jaffas and other confectionary.

The DMH venture attracted almost $6 million in pledges from about 4500 people who supported a plan to keep iconic Cadbury products made in Dunedin.

Instead the company was focused on merging with a local craft chocolate company.