After 186 years, Cadbury's one of Britain's best loved brands, has succumbed to a takeover by US cheese maker Kraft.
John Cadbury, a Quaker started a shop in Bourneville, Birmingham that sold tea, coffee, and hot
chocolate as an alternative to drinking booze. Cadbury's has classics that continue to fill the shelves even after 100 years, such as the Dairy Milk bar that first appeared on shelves in 1905.Yesterday came the news that Cadbury has agreed to an £11.9 billion (about $19 billion) takeover by American company Kraft. While acquisitions are common in the corporate world, this one has quite a few
people riled up. Many Brits are worried about job losses. And indeed, in an interview with the BBC, Cadbury chairman Roger Carr acknowledged that cuts would be an "inevitability," though Kraft has said it plans to invest in Cadbury's U.K. factories.
headquarters, festooned with British flags and reading "Kraft Go to Hell." Kraft's is really good at
making "plastic cheese" and God Forbid that Cadbury's iconic, rich, creamy Dairy Milk bars, will be
replaced by 'plastic chocolate'.
Debt-laden Kraft borrowed money to finance the takeover, so spending cuts will be on the new company's
balance sheet. But will production methods change? There are already international variations in Cadbury's products: For examplein the U.S., Cadbury chocolates are manufactured by Hershey's, in a licensing agreement with the American version tasting sweeter and less creamy.
This difference is partly accounted for by variations in local laws: In the U.K., milk chocolate must contain at least 20 percent cocoa solids, while in the U.S. the percentage can be as low as ten. Hershey's claims it tailors its Cadbury recipes to American tastes for a sweeter product.
With local preferences so ensconced on both sides of the Atlantic, it seems unlikely that Kraft would risk tinkering with so popular a product. However the temptation to cut costs by substituting cheaper ingredients (such as vegetable oil for cocoa butter) is also easy to see.
I'm very bothered by the Kraft takeover of Cadbury. I love chocolate, Brit style.
Now, excuse me as I reach for my Bournville, I believe I've earned it!


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