The company said that the decision was made because the distribution center does not have enough warehousing space to manage the increase in production resulting from the improved efficiencies at their factories.
The shut down will result in a loss of 60 jobs, however the confectioner said that the staff will be paid their full entitlements and the company will re-train them to find another job.
ABC News quoted Daniel Ellis, a spokesman of Cadbury, as saying: "Our factories are now running at a more efficient level and we have more output of products that we've had in the past. We just simply don't have the warehousing space or the expertise to run the facility at Ringwood anymore."
According to Mr Ellis, the job losses followed an investment of $200m made by the company for the upgradation of its sites in Australia and New Zealand. The restructuring process also included the consolidation of three lolly factories into one.