Cadbury is a multinational confectionery company that was founded in Birmingham, England in 1824. In 2010, Cadbury was acquired by the American food and beverage company Kraft Foods. The acquisition of Cadbury by Kraft was a controversial and widely debated topic, with many stakeholders weighing in on the potential effects of the merger on the chocolate industry, the companies involved, and the wider economy.
One of the main reasons for the acquisition was to expand Kraft's presence in the global confectionery market. Cadbury had a strong brand and a large market share in many countries, especially in Europe and developing markets. The acquisition would allow Kraft to leverage Cadbury's expertise and customer base to grow its own confectionery business and increase profits.
However, the acquisition faced significant opposition from many quarters. Some argued that Kraft's corporate culture was incompatible with Cadbury's values, which were rooted in a strong commitment to corporate social responsibility. Others were concerned about the potential for job losses and the potential impact on local economies in countries where Cadbury had a significant presence. There were also concerns about the impact on competition in the confectionery market, with some arguing that the acquisition would create a dominant player that could harm smaller competitors.
Despite these concerns, the acquisition went ahead, and Kraft subsequently rebranded as Mondelez International, with Cadbury becoming one of its divisions. The long-term effects of the acquisition on Cadbury, Kraft, and the confectionery market are still being debated. Some have argued that the acquisition has had a negative impact on the quality and innovation of Cadbury's products, while others have pointed to the company's continued success and growth under Mondelez's ownership.
Overall, the Cadbury acquisition by Kraft was a significant event in the history of both companies and the confectionery industry. It remains to be seen how the acquisition will shape the future of these companies and the wider market, but it is clear that the impact of this merger will be felt for many years to come.
Kraft's Acquisition of Cadbury
Retrieved 10 July 2021. Price Matters Smaller packs are often the key to success in developing markets for a couple of reasons. Mondelez also sells biscuits bearing the Cadbury brand, such as Ice cream based on Cadbury products, like Other Kraft subsidiaries in the UK include Cadbury Two LLP, Cadbury UK Holdings Limited, Cadbury US Holdings Limited, Cadbury Four LLP, Cadbury Holdings Limited, and Cadbury One LLP. Retrieved 21 December 2010. Press Trust of India. On the 5 th of February, 2010, it increased the percentage of shares to reach the target of 75% that was needed so as to enable the de-listing of Cadbury from the stock market and fully integrating it as part of the Kraft Foods Group.
Merger and Acquisition Case Study
Retrieved 23 November 2021. In the 1950s, the Port Elizabeth factory was expanded to include a new laboratory in order to start producing new products, such as the Flake and Crunchie Bar 1960s. Retrieved 11 August 2019. Following a long fight, Cadbury Chairman Roger Carr agreed to a deal in January after extracting a last-minute sweetener. By using the Site, you agree to be bound by our Terms of Use. In addition, some analysts have questioned the true synergies Cadbury will gain from the deal, with market analysts Euromonitor, for example, arguing that the dependency on the troubled Latin American region 40 per cent of 2001 sales and the declining sugarised rather than sugar-free gum sectors could come back to haunt the company. It is home the world's first customer facing 3D Cadbury chocolate printer and aims to offer a premium chocolate experience.
Kraft snares Cadbury for $19.6 billion
Rowntree and the Marketing Revolution, 1862—1969. Retrieved 5 July 2017. Kraft, the US food group, is also said to have looked at Adams. The Cadbury HR Director further promised the employees that there would be a severance package for them and also a job centre would be created for them. However, the request from the Cadbury staff to be offered with the guarantees that the company site would not be shut, their pension scheme would be obeyed and the terms and conditions were to be safe was not offered. EC Competition Law: Text, Cases and Materials Oxford: Oxford University Press.
Kraft’s Cadbury Takeover 10 Years On: Who Really Won?
Retrieved 9 October 2017. NASDAQ and other data delayed 15 minutes unless indicated. Cost and revenue synergies, and the opportunity to drive the business within a global confectionery group, will create significant value for our shareowners. Retrieved 17 March 2019. Kraft could have acquired other smaller companies based in the United States, but since it had hidden interests it decided to explore other options in the United Kingdom. Similarly, in Brazil, the company expanded sales of Kraft products into 650,000 retail outlets.
