Tuesday, 2 December 2025

Chocolate factory expansion sweetens island attraction

SETTING up a chocolate making business on Phillip Island was no accident for Kondanapanny Letchumanan, known locally, and at his Phillip Island Chocolate Factory as ‘Panny’. Trained as a mechanical engineer in his homeland of Malaysia, Panny...

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by Michael Giles
Chocolate factory expansion sweetens island attraction
Phillip Island Chocolate Factory is in the middle of a major growth phase at its popular site on Phillip Island Road in Newhaven.

A popular tourist attraction and chocolate manufacturer on Philip Island has received support from the State Government to expand its facilities, create more local jobs and boost tourism.

Minister for Industry Support and Recovery Martin Pakula visited the Phillip Island Chocolate Factory on Friday which is being supported by the State Government’s Business Competitiveness Program to expand its production capacity and build new viewing areas for visitors, creating 25 new jobs.

The $1.4 million project involves bringing in new machinery that will significantly boost production from 35 tonnes to 550 tonnes of chocolate each year – roughly the same weight as a full Airbus A380 airplane.

This will help the business to meet rising demand for chocolate through wholesale and export sales.

The project will also create more viewing areas for the public to see how the company’s chocolate treats are made, enhancing the experience for visitors which averaged around 170,000 a year prior to the pandemic.

“We’re supporting businesses like the Phillip Island Chocolate Factory to expand and become more competitive because it drives growth and creates local jobs,” said Minister for Industry Support and Recovery Martin Pakula.

“This program provides Victorian businesses with the support they need to export even more products around the globe – cementing our reputation as Australia’s manufacturing state.”

Tourism is big business in Phillip Island. In 2019, Phillip Island welcomed 2.7 million visitors who stayed 3.1 million nights and contributed $579 million into the local economy.

Phillip Island Chocolate Factory is one of 28 small to medium-sized manufacturers across the state to receive a grant from the Business Competitive Program which aims to improve production and make our manufacturing sector more competitive.

“The Phillip Island Chocolate Factory is already an iconic part of our region, and this expansion means it can welcome more visitors, provide more jobs for locals and make more delicious chocolate for everyone,” said Bass MP Jordan Crugnale.

Philip Island Chocolate Factory Owner Panny Letchumanan was very appreciative of the government support.

“We are passionate about chocolate and the support from the Victorian Government allows us to share our passion with more people from around the world and treat them to some Phillip Island sweetness,” he said.

A full list of Business Competitiveness Program grant recipients is available at business.vic.gov.au/businesscompetitiveness-program-round-1.

Where it all began

Setting up a chocolate making business on Phillip Island was no accident for Kondanapanny Letchumanan, known locally, and at his Phillip Island Chocolate Factory as ‘Panny’.

Trained as a mechanical engineer in his homeland of Malaysia, Panny spent years working in a coconut and cocoa plantation in Papua New Guinea where he first started to experiment chocolate making.

“I always loved chocolate. I often experimented with making chocolate, whenever I found time. I came up with some crude versions,” he said in an interview with Indian language newspaper The Hindu.

“But I was learning.”

When he moved to Australia in 2000, his path was set and the story has been one of going from success to success, from humble beginnings, with hard work, great customer service and a willingness to innovate, among the secrets to success.

And, after battling through the financial challenges posed by the worldwide pandemic, he’s not simply consolidating and standing on his laurels.

There’s a big, new facility taking shape alongside the existing chocolate factory with plans to go further into the manufacture of chocolate over the next few years.

Panny’s Chocolates, as it is known locally, is a consistently strong performer in the visitor economy, adding to the scope and complexity of the offering to holidaymakers and day trippers on Phillip Island.

Exactly what is being planned for the new, expanded facility has not yet been detailed, but it’s all set to come together in time for another big summer season.

Check it out next time you visit Phillip Island.

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