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Thursday, May 24 2012

Business Blog - Cadbury

I was looking at a box of After Eight chocolates last night. I was sure it used to proclaim the brand Terry's. But I see that name has now given way to Nestle.

It reminded me of the possible changes in store for Cadbury now that it is owned by the American conglomerate Kraft.

There is no reason why in time the Kraft name will not be on every bar of Dairy Milk and every box of Milk Tray.

Kraft has already undermined trust by reneging on its pledge to keep open the Fry's factory in Bristol.

It is a shocking decision to axe a loyal workforce with decades of dedication, not to mention a special ethos, and switch production to Poland.

I know Cadbury already had this in mind, but it was wrong of Kraft to raise hopes by saying it would not close under new ownership.

Kraft was always an unwelcome suitor, except to large shareholders looking for big bucks. Ethos and tradition have gone hang. This episode suggests that Kraft assurances are worth precious little. Now Cadbury workers face the reality of life under a conglomerate. And if CDM tastes different when it comes rolling of the Polish production line, investors beware.

In all ways, it leaves a sour taste in the mouth. Never glad confident morning again!

Monday, March 01 2010

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