My Friend the Chocolate Cake were formed initially as an acoustic side project in 1989 by David Bridie on vocals, piano, harmonium and keyboards and Helen Mountfort on cello and backing vocals. Bridie and Mountfort were members of an ambient, world music ensemble not drowning, waving. In 1989, Bridie had taken a holiday to New Zealand and had written "a few more breezy compositions" that did not fit into the style of not drowning, waving. Upon return to Melbourne, Mountford joined his project with her own writing.