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Acquisition of Cadbury by Kraft

Cadbury began in 1824 in Birmingham, England as a small chocolate shop and grew to become a global confectionery company, producing iconic brands like Dairy Milk, Roses, and Crunchie. However, in the 2000s Cadbury faced several food safety issues that damaged its brand image and required costly product recalls. In 2010, Kraft Foods acquired Cadbury for $19.5 billion, seeking to expand its global snack food business.

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0% found this document useful (0 votes)
46 views9 pages

Acquisition of Cadbury by Kraft

Cadbury began in 1824 in Birmingham, England as a small chocolate shop and grew to become a global confectionery company, producing iconic brands like Dairy Milk, Roses, and Crunchie. However, in the 2000s Cadbury faced several food safety issues that damaged its brand image and required costly product recalls. In 2010, Kraft Foods acquired Cadbury for $19.5 billion, seeking to expand its global snack food business.

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Pradeesh Kumar.A
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© Attribution Non-Commercial (BY-NC)
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ACQUISITION OF

CADBURY BY
KRAFT
HISTORY OF Cadbury’s:
Headquartered in Cadbury House in the Uxbridge Business Park in
Uxbridge, London Borough of Hillingdon, England and formerly listed on the
London Stock Exchange.
In 1824, John Cadbury began vending tea, coffee, and drinking chocolate,
which he produced himself, at Bull Street in Birmingham, England..
John Cadbury later moved into the production of a variety of Cocoas and
Drinking Chocolates being manufactured from a factory in Bridge Street,
supplying mainly to the wealthy due to the high cost of manufacture at this time.
During this time a partnership was struck between John Cadbury and his
brother Benjamin. At this time the company was known as 'Cadbury Brothers of
Birmingham..
Contd…
In 1905, Cadbury's launched its Dairy Milk bar, with a higher
proportion of milk than previous chocolate bars, and it becomes the
company's best selling product by 1913.
Fruit and Nut was introduced as part of the Dairy Milk line in 1928,
soon followed by Whole Nut in 1933. By this point, Cadbury's was the brand
leader in the United Kingdom.
Cadbury's Milk Tray was first produced in 1915 and continued in
production throughout the remainder of the First World War.
More than 2,000 of Cadbury's male employees joined the Armed
Forces and to support the war effort, Cadbury provided clothing, books and
chocolate to soldiers.
Products of Cadbury around the
world:
 1865: Cocoa Essence
1875: Easter Eggs 1960: Dairy Milk Buttons
1897: Milk Chocolate 1968: Picnic
1897: Cadbury Fingers 1970: Curly Wurly
1905: Dairy Milk 1983: Wispa (relaunched 2007)
1908: Bournville Chocolate 1985: Boost
1915: Milk Tray 1987: Twirl
1920: Flake 1992: Time Out
1923: Creme Egg 1996: Fuse
1929: Crunchie 2001: Brunch Bar, Dream and
1938: Roses Snowflake
1948: Fudge

2010: Cadbury dairy milk silk (richer, finer milk chocolate)


and Wispa Gold
Healthy and safety measures:
In 2006 and 2007 cadbury’s faced much trouble among their
packing and other aspects. 
Main issues are one of its factory affected Salmonella bacteria, in
one of their chock late pipes and then they did’nt noticed transported
to some of their factories causing severe damages to their image....
Then they recalled 10 million bars, and its worth around $1.5
billion.
Then they caught in several cases like breaching health, non safety
regulation and in other 6 cases they caught, for that they paid 1million
pound for offence.
Mainly around 2007-09 they suffered and recalled their products for
Accounting

 In July 2007, Cadbury Schweppes announced that it would be


outsourcing its transactional accounting and order capture
functions to Shared Business Services (SBS) centres run by a
company called Genpact, (a businesses services provider) in
India, China, and Romania.
 This was to affect all business units and be associated with U.S.
and UK functions being transferred to India by the end of 2007,
with all units transferred by mid-2009.
 Depending on the success of this move, other accounting
Human Resources functions may follow. This development is
likely to lead to the loss of several hundred jobs worldwide, but
also to several hundred jobs being created, at lower salaries
commensurate with wages paid in developing countries.
SWOT ANALYSIS
Strengths:
Maximising of its production capacity.
 
And increases economies of scale
 
Has a team to lead the local and global market players.
 
Financially they were looks good.
Weakness:
They were not up to mark in maintaining a factory.
 
And many times they caught in labour problems.
 
Due to the work load the were not concentrated in packing & labelling once.
 
Lack in distribution networks.
 
Total world cadbury’s chock late production dumped from 19% to 9%, due to
economic slump.
Opportunity:
Cadbury has an opportunity to grow in Russia and china.
 
And also france has the leading domestic product manufacture in the
world, and in the time of economic slump it does’nt suffer alot. So
Cadbury has an opportunity to grow over there.
 
Times ago they introduced low calorie bars and now they concentrating
on sugarfree bars..
Threats:
They must understand and upgrade of users taste.
 
Nowadays users switching to differentials.
 
They were under estimating of foreign culture and beliefs.
 
Retailer pressure.
Cadbury’s Indian products are:
Chocolates:
Dairy milk
Gems
5 star
Perk
Celebrations
Temptations
Éclairs
 Snacks:
BYTES.
Beverages:
Bournvita
Boost
Candy:
Halls
Gums:
Bubbaloo

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