Cadbury's Dunedin factory will close early next year, owner Mondelez has confirmed.
The company told staff on February 16 about the potential closure.
Amanda Banfield, area vice-president of Mondelez for Australia, New Zealand and Japan, said no alternative to closure could be found.
"Following four weeks of detailed consultation with the union and employees to assess
alternatives, we could not find a viable option that met global benchmarks and ensured the ongoing sustainable operation of the factory.
"Our focus is now on helping our team and minimising the impact of this decision on
them and the broader Dunedin community."
The decision spells the end for some 350 jobs at the factory, which was a major employer in the South Island city, and Mondelez said it will support relocating as many as possible for roles in Australia and the region. The company plans to keep the Cadbury World tourism venture, which employs 36 people, and is considering redeveloping the site.