Transcript
Our respnsblits wth consumer
Consumer Trends
Good business and good values go hand-in-hand at Cadbury Always have done and always will do We
approach consumer trends with a commitment to put actions before words and to respect and protect the
long history of trust we have with our consumers
Listening to consumers
Listening to customers and consumers is fundamental to our business success - its something we do every
day and it helps us to offer products that are safe delicious and enjoyable
We talk to our customers - the people who sell our products to the people who consume them - to better
understand consumer trends We also deal directly with consumers and have substantial resources at the
business unit level to listen and respond to consumer queries and complaints
Responding to consumer needs
The issues of food and balanced diets are now high on the consumer agenda along with product quality and
safety We use our intuition and consumer insights to understand consumer needs and issues and we
demonstrate our responsibility by taking appropriate action to ensure we create tomorrows business today
We will continue to give consumers the great tasting products they love in a variety of different formats
recipes and sizes Research plays a large role in our innovation agenda exploring opportunities for new
products product enhancement and packaging and were always checking that our recipes and ingredients
are right for todays consumer
What We Are Doing
Responding to consumer health concerns - 12 point plan
In 2004 we rolled out our 12 Point Action Plan which responds to consumer health concerns including a
Global Marketing Code of Practice with special reference to children It is supported by an extensive series
of policies and standards on matters related to food and its content It also aims to contribute to finding
sustainable solutions to obesity and poor lifestyles together with the global consumer research studies we
undertook in 2005 into food health diet nutrition and obesity
Our progress on each of the twelve points is summarised below and examples of the progress we have made
can be found in our section about Todays Topics
Products and innovation - measurable progress
We aim to offer alternative product choices including reduced fat sugar and salt for our core brands
In every market in which we operate we listen to our consumers We make products people feel good
about from sugar-free gum to high-energy bars made for climbers who scale Mount Everest Our products
are as diverse as our consumers
Through innovation we are investing in the development of new products within every category in order to
provide consumers with the right choice We are also renovating many of our products to meet changing
needs In India our beverage Bournvita is fortified with 11 micro-nutrients to specifically address child
nutrition needs In Central America Trident Xtracare gum contains our proprietary ingredient Recaldent
which helps keep teeth strong in response to local concerns about oral care New products also include
lower calorie offerings and new sweetener options Over the past 3 years we have increased the low calorie and low fat choices in our portfolio by 50 through
innovation and acquisition
We have committed to reducing saltsodium in our products
We have a programme in place to reduce trans-fatty acids in our products
Over 70 of our gum is now sugar-free
We continue to expand our range of sugar-free mints
Our chocolate range now includes calorie marked packs smaller sizes sugar-free organic and low carbohydrate options
30 of our candy is now sugar-free or natural in colours and flavours
Our medicated cough sweets include functional andor preventative benefits
Marketing and children - we can help
People are concerned about marketing to children Cadbury supports self-regulation and our Global
Marketing Code of Practice contains a section dedicated specifically to children It was established in 2004
and can be found in our Marketing Code page It also defines the special care to be taken when advertising
to children between ages 8 and 12 Respect the role of parents and not encourage pester power
No use of fantasy characters celebrities or placementscheduling in a way that confuses or encourages inappropriate or over consumption
No collection of personal details or contacts
We have recognised the challenges that new media channels bring and have created additional guidance
and a global team to work alongside marketing colleagues to ensure good practice
We also market in line with local regulations and standards and work with other food companies to advance
best practice
Whats our path timing and tracking
Our updated global Marketing Code of Practice will be re-launched by mid 2007 with Assurance readiness by
end 2007 and limited Public Assurance by end 2008
We are sharing the code with our business partners and asking them to support our position
We will measure our progress internally during annual contract reviews
We also have a range of specific guidelines relating to vending and schools
Portion sizing - variety and moderation
We help our consumers by providing a broader range of options across all our product ranges Cadbury was
the first confectionery manufacturer to discontinue the single-serve king-size lines in 2004 We made this
move as part of our overall efforts to encourage moderation and responsible consumption We also continue
to offer a variety of smaller sizes and options Where we have larger portion sizes we make clear that they
are for sharing or for multi-occasions We have included new portion size and sharing information on our
labelling These steps will give consumers greater choice and flexibility in how they consume our products
Labelling - an industry first
Consumers tell us they know and understand our products We want to continue to be open and transparent
about what is in our products and how these compare to other foods and fit within the context of overall
intake We are providing more information and responsible consumption messaging to help keep consumers
informed We have launched a new global labelling standard together with Be Treatwise - a UK
confectionery industry consumer education campaign designed to educate consumers about the role of
treats in the diet We have also introduced GDAs (guideline daily amounts) in the UK
Vending in schools - by invitation only
We do not sell confectionery through vending machines in primary schools We vend in secondary schools by
invitation only and in line with nutritional guidelines set by the school We do not carry visuals of children
under eight years of age on our vending machines
Consumer insight and research - sharing to help others
We continue to invest in use and willingly share our consumer research and expertise to help improve
understanding of concerns both within and outside the business
In 2005 we undertook global research studies into food health diet nutrition obesity labelling and
marketing covering both developed and developing countries and have shared these studies with
governments and others This builds on work undertaken in 2004 and 2003 We are supporting with untied
and unbranded funds primary scientific research in this area
We recognise that one of the most important things we can do is to contribute to a better understanding of
the facts surrounding both current social trends and our own brands For four consecutive years Cadbury
Trebor Bassett has supported a major study in the UK that tracks annual changes in obesity in adults and
children and specifically assesses the role and position of confectionery in peoples lives - in terms of both
attitudes and behaviours Called The LIBRA Study this large-scale research initiative is part of an ongoing
effort to help improve understanding in this area of public health The study is conducted with leading
research company Taylor Nelson Sofres and supplemented by UK government statistics Previous findings
about diet and exercise from The LIBRA Study have been presented as part of scientific sessions at the
European Congress on Obesity
Energy balance - we support building understanding
We continue to endorse initiatives that promote physical activity responsible consumption of our products
through campaigns like Be Treatwise and an understanding of the energy equation particularly among
children
Community - our people are all part of their local community
We continue to support initiatives that promote physical activity and education that help improve consumer
health and the understanding and prevention of obesity These programmes are often local initiatives led by
our people working as volunteers within their local community
Business Partners - our customers and suppliers
Our efforts do not occur in isolation and we are actively engaging with government non-governmental
organisations business partners customers and our competitors asking them to inform and support our
responses Alone we are limited in what we can do but together the potential to be a force for good is great
Employee health and wellbeing - because our employees are consumers too
We are active in helping our people understand and improve their own health and wellbeing Good
stewardship begins at home We have a long tradition of looking after our employees and part of that
commitment today still involves helping them keep fit healthy and feeling good about themselves
We provide a number of local health and wellbeing programmes for employees ranging from employee
nutrition and health education through to whole-family health management schemes The programmes
include the provision of nutrition-focused on-site cafeterias hygiene and health management education
subsidised activity facilities on or off-site organised sporting and social activities and a range of courses and
counselling on matters such as work-life management relaxation and stress management managing weight
change and reducing smoking or drinking
A large number of local business units have medical facilities for basic health and safety requirements In
addition many offer employees medicals of one kind or another to give an indication of fitness to work
Guiding principles for such employee wellbeing schemes were introduced in 2005 to inform further
development and the introduction of new facilities and programmes
Science nutrition and innovation - we have increased support
Our decision-making around food and health issues is based on the sound application of science As a
company we have a large science capacity and invest significantly in research that enables us to drive
innovation and provide consumers with a wide variety of choice including alternative products (reduced fat
sugar and salt) within our core brands We have significantly increased our scientific and nutritional
resources within our business and now have Around 700 Science and Technology colleagues employed globally
A Global Science Centre at Reading University Campus UK
A new US$ 40m Science Technology and Innovation Centre in New Jersey US
A new pound145m Science Centre opened in Singapore in 2006 to serve the Asia Pacific Region
A newly appointed Director of Nutrition
Global fortification guidelines and nutritional standards
A global external Nutrition Advisory Board
Beyond our in-house research we support hundreds of scientific projects around the world For example
through the support that we give to the International Life Sciences Institute we are increasing the
understanding of how specific components in food affect and improve health
Through this investment we are reducing our reliance on the ingredients consumers are concerned about
and are reformulating products to make sure they continue to taste great and are enjoyed
Stakeholders - we value what others think
Our business decisions are underpinned by sound science together with consumer research We also listen to
the opinions and expectations of others including government shareholders campaigners customers and
our families and friends and incorporate these into our business decision making processes For example in
2001 based on concerns around marketing to children and existing science on the age when children
identify and understand advertising motives we withdrew from advertising to children under eight years of
age where they are the majority of the audience
Our Marketing Code
What is the Cadbury global marketing code
We are proud of our brands They provide fun and enjoyment as treats or refreshment and are valued
for their functional benefits They can be enjoyed as part of a balanced diet and lifestyle We provide
choice by offering variety and through innovation We encourage responsible consumption as this is
central to consumers continuing to enjoy our brands
Our consumers are at the heart of our business We are committed to listening to them and acting
responsibly in their interests and have done this successfully for generations
This Marketing Code of Practice ensures we continue to meet our responsibilities to our consumers1 Accurate and truthful
2 Attentive to local sensitivities
3 Supporting sensible consumption and balanced life style
4 Protecting children
View or download our full Marketing Code of Practice (PDF 74k)
Application and governance1 We will apply these guidelines to all forms of media including print broadcast and cable television radio
video telephone point-of-sale online advertising other internet activities and packaging
2 Prior to release all advertisements and promotions to children will be reviewed at an early stage for the appropriateness of the activity and then checked against this code before being signed off by Legal representatives
3 In addition there will be a periodic review of business unit activity by regional and global management to ensure that interpretation of the code is aligned locally regionally and globally
4 This code is reviewed annually by the groups President of Commercial Strategy and put before the companys Food Strategy Group for policy approval
Sourcesreferences
This code has been developed with reference to the following
General references
International Chamber of Commerce Framework for Responsible Food and Beverage Communications
International Chamber of Commerce httpwwwaanacomauregulatory_overviewhtml (accessed July
2004)
Principles of Food and Beverage Product Advertising Confederation des industries agro-alimentaires de IUE -
the confederation of EU food and drink industry (CIAA)
httpwwwgwadefileadmindownloadKommbranche
CIAA_Principlespdf (accessed July 2004)
World Federation of Advertisers (WFA) wwwwfanetorg
European Advertising Standards Alliance (EASA) httpwwweasa-allianceorgabout_easaenabouthtml
Marketing to Children
Self-Regulatory Guidelines for Childrens Advertising Childrens Advertising Review Unit (CARU)
httpwwwcaruorgguidelinesindexaspx (accessed July 2004)
Code for Advertising to Children Australian Association of National Advertisers (AANA) recommendations
httpwwwaanacomaucodeshtml (accessed July 2004)
Report of the APA Task Force on Advertising and Children American Psychological Association (APA)
February 20th 2004 httpwwwapaorgreleaseschildrenadspdf (accessed July 2004)
Employment Practices
Our success relies on our people Cadbury has a strong heritage in the way it respects its people and its
social responsibilities
Our people practices are guided by our key values which are to be open and honest to act with complete
integrity and to provide quality in products and services
Learn more about how Cadbury promotes diversity amp opportunity reflecting the diversity of the societies in which we operate
encourages consultation amp dialogue with employees
provides leading-edge rewards amp recognition for leading-edge performance
encourages and invests in employee development and training
provides a healthy and safe working environment
Our Business Principles are also an important part of our management processes and inform how we
work all over the world Through them we can protect and perpetuate the ethical standards that make
Cadbury a
great company - to work for and to work with Communication of these principles to all managers enables us
to work together to ensure our company maintains its reputation for ethical standards
Cadbury Cocoa Partnership
Cadbury the worlds leading confectionery company has announced the establishment of the Cadbury
Cocoa Partnership to secure the economic social and environmental sustainability of around a million cocoa
farmers and their communities in Ghana India Indonesia and the Caribbean through Long-term commitment to improving farmer livelihoods and farming communities
Direct farmer involvement alongside NGO partners and governments
Ghanaian President and United Nations pledge their support
This ground-breaking initiative which will be carried out in partnership with the United Nations Development
Programme (UNDP) and other partners marks 100 years since the Cadbury brothers first began trading in
Ghana and aims to holistically support the development of sustainable cocoa growing communities
Research by the Institute of Development Studies Sussex and the University of Ghana Legon into
Sustainable Cocoa Production in Ghana funded by Cadbury showed that the average production for a
cocoa farmer has dropped to only 40 of potential yield and that cocoa farming has become less attractive
to the next potential generation of farmers The Cadbury Cocoa Partnership programme aims to address
some of the root causes of these issues - improving farmer productivity and helping to attract the next
generation into cocoa farming
The Partnership will focus on1 Improving cocoa farmer incomes by helping farmers increase their yields and produce top quality beans
2 Introducing new sources of rural income through microfinance and business support to kick start new rural businesses and introduce additional income streams such as growing other crops
3 Investing in community led development to improve life in cocoa communities eg supporting education through schools and libraries supporting the environment through biodiversity projects and building wells for clean safe water
4 Working in partnership developing a pioneering model which will be led from the grass roots Farmers governments NGOs and international agencies will work together to decide how the funding is spent and work with local organisations to turn plans into action
Find out what our Cadbury Cocoa Partnership partners have to say in this video with our partners or by
reading the associated transcript here
Announcing the partnership Matt Shattock President of Cadbury Britain Ireland the Middle East
and Africa said Sustainable cocoa production is vital to Cadburys commercial success not simply the
supply of our most important ingredient but guaranteeing a reliable long term source of the right quality
cocoa produced to the high standards our business customers and our consumers expect
The majority of the Partnership funds (70) will be invested into small farms and farming villages in Ghana
which provide the cocoa beans for Cadburys UK chocolate giving it its unique and much loved taste Brands
using Ghanaian beans include Cadbury Dairy Milk Wispa Flake Creme Egg and Buttons
James Boateng Managing Director of Cadbury Ghana added In the centenary of our relationship with
the cocoa farming industry in Ghana we are incredibly proud to launch the Cadbury Cocoa Partnership in
Accra today which we hope will have a lasting impact on the lives of cocoa farmers
I grew up on a cocoa farm and owe my education to the prosperity which cocoa brought to my family and
look forward to contributing to the future of cocoa farming In Ghana there is a phrase Kookoo cobatanpa
which means Cocoa is a good parent it looks after you We hope with this initiative Cadbury and our
partners can be a good parent to cocoa
Welcoming the initiative UNDPs Resident Representative in Ghana Daouda Toureacute said UNDP strives
to promote inclusive sustainable development where everyone benefits as a country gets to grips with
fighting poverty Ghana has been producing cocoa for decades now and the industry has certainly gone
some way to improving the lives of the Ghanaian people but with this new public-private partnership
approach developed with Cadbury where both the small producer and the consumer benefit we hope to
show just how effectively sustainable cocoa production can be in generating improved opportunities for local
farmers conserving the environment and building a brighter future for younger generations
Cadbury is initially investing pound1m in 2008 as a seed fund to establish the Cadbury Cocoa Partnership with
annual funding levels rising to a steady rate of pound5m over the next several years
We also note with satisfaction the fact that Ghana signed an Economic Partnership Agreement with the EU
which allows us to continue importing cocoa butter powder and liquor at 0 tariffs This in turn benefits the
Ghanaian economy and further strengthens our partnership and investment in the country
To get a snap shot of some of the work we are doing in Ghana please click through the case
studies below
Earthshare partnership
Ghana Wells programme
Teacher training support with Digital Links International
Free newspaper for cocoa farmers
Enterprise Loans to aid skills development in Cocoa communities
Library programme
Overview
A Socially Responsible Company
Responsible business is underpinned by strong values and has a clear and compelling vision of where it is
going Over many years Cadbury has earned success on the strength of its distinctive values and clear
vision This update sets out the steps we are taking to ensure that in our present and future business as in
the past we continue to live our values
Ultimately our goals and those of our shareowners are similar a responsible and well-run company that
delivers consistently superior profits over the long-term Performance driven values led Good business and
strong values go hand in hand For our long term future and that of all our stakeholders it is in our mutual
interests that we create a world in which our business will grow and thrive
Browse this site to find out more about our CSR programme corporate governance employment practices
ethical trading food and consumer trends environment health and safety and community Discover the
different ways in which we are living up to the demands of good corporate citizenship
You can also download our latest Sustainability report
Cadbury Schweppes was included in the Companies that Count 2006 BiTCs Corporate Responsibility Index
Top 100 in association with The Sunday Times which was the fourth year that we were included in the Top
100 ranking 36th Our performance improved every year and in 2006 we scored 925 up from 89 and
87 in the previous two years
Cadbury has participated in Business in the Community (BiTC) Corporate Responsibility Index since the
Indexs inception in 2002 We use this index to help us measure and manage our global performance in
corporate and social responsibility (CSR) and to benchmark ourselves against other companies
Corporate Governance
In managing the affairs of the Group the Board of Cadbury plc is committed to achieving high standards of
business integrity ethics and professionalism across all its activities As a fundamental part of this
commitment the Board supports the highest standards of corporate governance To help achieve this the
Board has approved a set of Corporate Governance Principles These principles set out our approach to this
area and also provide a summary of our current position
The Group has a Financial Code of Ethics that applies to the Chief Executive Officer and senior financial
officers in the Group and all members of the Board sign the Cadbury Business Principles entitled Our
business principles
Further details of our corporate governance are reported in our Report amp Accounts
Non-executive directors
The Cadbury Board currently consists of seven Non-Executive Directors and three Executive Directors
Collectively they bring a valuable range of international experience and expertise as they all currently
occupy or have occupied senior positions within industry and public life All the Non-Executive Directors are
independent of management and have no relationships which could materially interfere with the exercise of
their independent judgement Subject to satisfactory performance a Non-Executive Director is appointed for an initial term of three years
After the initial three year term they may serve two additional three year terms with a maximum of nine years service on the Board as a general rule
A Non-Executive Director is expected to attend every Board Meeting including those held overseas
A Non-Executive Director is expected to make regular visits to the Groups operations to better understand its workings
Each Non-Executive Director is expected to devote such time as is necessary for the proper performance of their duties However an average time commitment of one to one and one-half days per month is suggested as a guideline
The base fee for a Non-Executive Director is pound55000 per year paid quarterly in arrears however this is increased if they are appointed chairman to a Board Committee
The Company has established a programme which enables a Non-Executive Director to allocate a portion of their fees to the purchase of Cadbury shares Currently all Non-Executive Directors use this facility
A copy of our most recent non-executive director appointment letter can be downloaded as a PDF file The
letter will be updated when any future Cadbury plc appointments are made
Terms of reference
The Board and its committees have adopted terms of reference which define their roles and responsibilities
These together with the Memorandum and Articles of Association for Cadbury plc can also be viewed here
Matters reserved for the Board
Remuneration Committee Terms of Reference
Nomination Committee Terms of Reference
CSR Committee Terms of Reference
Chief Executive Committee Terms of Reference
Memorandum and Articles of Association
Audit Committee Terms of Reference
Community
Growing community value
Growing value in the community is part of our heritage and integral to achieving our core purpose of working
together to create brands people love
We have always recognised that we do not operate in isolation but have responsibilities to our employees
and the society in which we operate Cadbury was well known for its pioneering work in the 19th century
providing housing education welfare and recreation facilities for the local community
As we have grown as a business the expectations of our consumers customers employees and wider
society have also increased Today we recognise that prosperous educated and socially inclusive
communities are central to our success
Why we invest in the community
Healthy highstreets are founded on healthy backstreets It is in the interests of business to have
prosperous communities educated employees and healthy happy consumers
Building and protecting our reputation Our good reputation has always been important to us - because
it is important to our people our brands our customers our regulators and increasingly our investors
Strengthening our company culture Community investment keeps us in touch with consumers makes
us more adaptable and responsive gives us new perspectives and skills and helps us work in more creative
ways
We invite you to find out about our commitments to growing community value throughout our business the
processes we use and see a few of the many people who have benefited from this commitment
Overview Consumer Cadbury Cocoa Partnership Corporate Governance Human Rights Employment Practices Ethical Trading Community
Purple Goes Green
Home Our Responsibilities
Human Rights
Human Rights
In 2007 we initiated a review of our global human rights strategy Following this we articulated our
approach in a document ldquoOur Approach to Human Rightsrdquo which explicitly communicates how our business
activities promote human rights This reflects both our heritage and our conviction that respect for human
rights is crucial to business success Our Approach to Human Rights reinforces the key areas where our
business activities impact on human rights and how we address this through our CSR and wider business
agenda
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
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Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Email Text Size
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Products and innovation - measurable progress
We aim to offer alternative product choices including reduced fat sugar and salt for our core brands
In every market in which we operate we listen to our consumers We make products people feel good
about from sugar-free gum to high-energy bars made for climbers who scale Mount Everest Our products
are as diverse as our consumers
Through innovation we are investing in the development of new products within every category in order to
provide consumers with the right choice We are also renovating many of our products to meet changing
needs In India our beverage Bournvita is fortified with 11 micro-nutrients to specifically address child
nutrition needs In Central America Trident Xtracare gum contains our proprietary ingredient Recaldent
which helps keep teeth strong in response to local concerns about oral care New products also include
lower calorie offerings and new sweetener options Over the past 3 years we have increased the low calorie and low fat choices in our portfolio by 50 through
innovation and acquisition
We have committed to reducing saltsodium in our products
We have a programme in place to reduce trans-fatty acids in our products
Over 70 of our gum is now sugar-free
We continue to expand our range of sugar-free mints
Our chocolate range now includes calorie marked packs smaller sizes sugar-free organic and low carbohydrate options
30 of our candy is now sugar-free or natural in colours and flavours
Our medicated cough sweets include functional andor preventative benefits
Marketing and children - we can help
People are concerned about marketing to children Cadbury supports self-regulation and our Global
Marketing Code of Practice contains a section dedicated specifically to children It was established in 2004
and can be found in our Marketing Code page It also defines the special care to be taken when advertising
to children between ages 8 and 12 Respect the role of parents and not encourage pester power
No use of fantasy characters celebrities or placementscheduling in a way that confuses or encourages inappropriate or over consumption
No collection of personal details or contacts
We have recognised the challenges that new media channels bring and have created additional guidance
and a global team to work alongside marketing colleagues to ensure good practice
We also market in line with local regulations and standards and work with other food companies to advance
best practice
Whats our path timing and tracking
Our updated global Marketing Code of Practice will be re-launched by mid 2007 with Assurance readiness by
end 2007 and limited Public Assurance by end 2008
We are sharing the code with our business partners and asking them to support our position
We will measure our progress internally during annual contract reviews
We also have a range of specific guidelines relating to vending and schools
Portion sizing - variety and moderation
We help our consumers by providing a broader range of options across all our product ranges Cadbury was
the first confectionery manufacturer to discontinue the single-serve king-size lines in 2004 We made this
move as part of our overall efforts to encourage moderation and responsible consumption We also continue
to offer a variety of smaller sizes and options Where we have larger portion sizes we make clear that they
are for sharing or for multi-occasions We have included new portion size and sharing information on our
labelling These steps will give consumers greater choice and flexibility in how they consume our products
Labelling - an industry first
Consumers tell us they know and understand our products We want to continue to be open and transparent
about what is in our products and how these compare to other foods and fit within the context of overall
intake We are providing more information and responsible consumption messaging to help keep consumers
informed We have launched a new global labelling standard together with Be Treatwise - a UK
confectionery industry consumer education campaign designed to educate consumers about the role of
treats in the diet We have also introduced GDAs (guideline daily amounts) in the UK
Vending in schools - by invitation only
We do not sell confectionery through vending machines in primary schools We vend in secondary schools by
invitation only and in line with nutritional guidelines set by the school We do not carry visuals of children
under eight years of age on our vending machines
Consumer insight and research - sharing to help others
We continue to invest in use and willingly share our consumer research and expertise to help improve
understanding of concerns both within and outside the business
In 2005 we undertook global research studies into food health diet nutrition obesity labelling and
marketing covering both developed and developing countries and have shared these studies with
governments and others This builds on work undertaken in 2004 and 2003 We are supporting with untied
and unbranded funds primary scientific research in this area
We recognise that one of the most important things we can do is to contribute to a better understanding of
the facts surrounding both current social trends and our own brands For four consecutive years Cadbury
Trebor Bassett has supported a major study in the UK that tracks annual changes in obesity in adults and
children and specifically assesses the role and position of confectionery in peoples lives - in terms of both
attitudes and behaviours Called The LIBRA Study this large-scale research initiative is part of an ongoing
effort to help improve understanding in this area of public health The study is conducted with leading
research company Taylor Nelson Sofres and supplemented by UK government statistics Previous findings
about diet and exercise from The LIBRA Study have been presented as part of scientific sessions at the
European Congress on Obesity
Energy balance - we support building understanding
We continue to endorse initiatives that promote physical activity responsible consumption of our products
through campaigns like Be Treatwise and an understanding of the energy equation particularly among
children
Community - our people are all part of their local community
We continue to support initiatives that promote physical activity and education that help improve consumer
health and the understanding and prevention of obesity These programmes are often local initiatives led by
our people working as volunteers within their local community
Business Partners - our customers and suppliers
Our efforts do not occur in isolation and we are actively engaging with government non-governmental
organisations business partners customers and our competitors asking them to inform and support our
responses Alone we are limited in what we can do but together the potential to be a force for good is great
Employee health and wellbeing - because our employees are consumers too
We are active in helping our people understand and improve their own health and wellbeing Good
stewardship begins at home We have a long tradition of looking after our employees and part of that
commitment today still involves helping them keep fit healthy and feeling good about themselves
We provide a number of local health and wellbeing programmes for employees ranging from employee
nutrition and health education through to whole-family health management schemes The programmes
include the provision of nutrition-focused on-site cafeterias hygiene and health management education
subsidised activity facilities on or off-site organised sporting and social activities and a range of courses and
counselling on matters such as work-life management relaxation and stress management managing weight
change and reducing smoking or drinking
A large number of local business units have medical facilities for basic health and safety requirements In
addition many offer employees medicals of one kind or another to give an indication of fitness to work
Guiding principles for such employee wellbeing schemes were introduced in 2005 to inform further
development and the introduction of new facilities and programmes
Science nutrition and innovation - we have increased support
Our decision-making around food and health issues is based on the sound application of science As a
company we have a large science capacity and invest significantly in research that enables us to drive
innovation and provide consumers with a wide variety of choice including alternative products (reduced fat
sugar and salt) within our core brands We have significantly increased our scientific and nutritional
resources within our business and now have Around 700 Science and Technology colleagues employed globally
A Global Science Centre at Reading University Campus UK
A new US$ 40m Science Technology and Innovation Centre in New Jersey US
A new pound145m Science Centre opened in Singapore in 2006 to serve the Asia Pacific Region
A newly appointed Director of Nutrition
Global fortification guidelines and nutritional standards
A global external Nutrition Advisory Board
Beyond our in-house research we support hundreds of scientific projects around the world For example
through the support that we give to the International Life Sciences Institute we are increasing the
understanding of how specific components in food affect and improve health
Through this investment we are reducing our reliance on the ingredients consumers are concerned about
and are reformulating products to make sure they continue to taste great and are enjoyed
Stakeholders - we value what others think
Our business decisions are underpinned by sound science together with consumer research We also listen to
the opinions and expectations of others including government shareholders campaigners customers and
our families and friends and incorporate these into our business decision making processes For example in
2001 based on concerns around marketing to children and existing science on the age when children
identify and understand advertising motives we withdrew from advertising to children under eight years of
age where they are the majority of the audience
Our Marketing Code
What is the Cadbury global marketing code
We are proud of our brands They provide fun and enjoyment as treats or refreshment and are valued
for their functional benefits They can be enjoyed as part of a balanced diet and lifestyle We provide
choice by offering variety and through innovation We encourage responsible consumption as this is
central to consumers continuing to enjoy our brands
Our consumers are at the heart of our business We are committed to listening to them and acting
responsibly in their interests and have done this successfully for generations
This Marketing Code of Practice ensures we continue to meet our responsibilities to our consumers1 Accurate and truthful
2 Attentive to local sensitivities
3 Supporting sensible consumption and balanced life style
4 Protecting children
View or download our full Marketing Code of Practice (PDF 74k)
Application and governance1 We will apply these guidelines to all forms of media including print broadcast and cable television radio
video telephone point-of-sale online advertising other internet activities and packaging
2 Prior to release all advertisements and promotions to children will be reviewed at an early stage for the appropriateness of the activity and then checked against this code before being signed off by Legal representatives
3 In addition there will be a periodic review of business unit activity by regional and global management to ensure that interpretation of the code is aligned locally regionally and globally
4 This code is reviewed annually by the groups President of Commercial Strategy and put before the companys Food Strategy Group for policy approval
Sourcesreferences
This code has been developed with reference to the following
General references
International Chamber of Commerce Framework for Responsible Food and Beverage Communications
International Chamber of Commerce httpwwwaanacomauregulatory_overviewhtml (accessed July
2004)
Principles of Food and Beverage Product Advertising Confederation des industries agro-alimentaires de IUE -
the confederation of EU food and drink industry (CIAA)
httpwwwgwadefileadmindownloadKommbranche
CIAA_Principlespdf (accessed July 2004)
World Federation of Advertisers (WFA) wwwwfanetorg
European Advertising Standards Alliance (EASA) httpwwweasa-allianceorgabout_easaenabouthtml
Marketing to Children
Self-Regulatory Guidelines for Childrens Advertising Childrens Advertising Review Unit (CARU)
httpwwwcaruorgguidelinesindexaspx (accessed July 2004)
Code for Advertising to Children Australian Association of National Advertisers (AANA) recommendations
httpwwwaanacomaucodeshtml (accessed July 2004)
Report of the APA Task Force on Advertising and Children American Psychological Association (APA)
February 20th 2004 httpwwwapaorgreleaseschildrenadspdf (accessed July 2004)
Employment Practices
Our success relies on our people Cadbury has a strong heritage in the way it respects its people and its
social responsibilities
Our people practices are guided by our key values which are to be open and honest to act with complete
integrity and to provide quality in products and services
Learn more about how Cadbury promotes diversity amp opportunity reflecting the diversity of the societies in which we operate
encourages consultation amp dialogue with employees
provides leading-edge rewards amp recognition for leading-edge performance
encourages and invests in employee development and training
provides a healthy and safe working environment
Our Business Principles are also an important part of our management processes and inform how we
work all over the world Through them we can protect and perpetuate the ethical standards that make
Cadbury a
great company - to work for and to work with Communication of these principles to all managers enables us
to work together to ensure our company maintains its reputation for ethical standards
Cadbury Cocoa Partnership
Cadbury the worlds leading confectionery company has announced the establishment of the Cadbury
Cocoa Partnership to secure the economic social and environmental sustainability of around a million cocoa
farmers and their communities in Ghana India Indonesia and the Caribbean through Long-term commitment to improving farmer livelihoods and farming communities
Direct farmer involvement alongside NGO partners and governments
Ghanaian President and United Nations pledge their support
This ground-breaking initiative which will be carried out in partnership with the United Nations Development
Programme (UNDP) and other partners marks 100 years since the Cadbury brothers first began trading in
Ghana and aims to holistically support the development of sustainable cocoa growing communities
Research by the Institute of Development Studies Sussex and the University of Ghana Legon into
Sustainable Cocoa Production in Ghana funded by Cadbury showed that the average production for a
cocoa farmer has dropped to only 40 of potential yield and that cocoa farming has become less attractive
to the next potential generation of farmers The Cadbury Cocoa Partnership programme aims to address
some of the root causes of these issues - improving farmer productivity and helping to attract the next
generation into cocoa farming
The Partnership will focus on1 Improving cocoa farmer incomes by helping farmers increase their yields and produce top quality beans
2 Introducing new sources of rural income through microfinance and business support to kick start new rural businesses and introduce additional income streams such as growing other crops
3 Investing in community led development to improve life in cocoa communities eg supporting education through schools and libraries supporting the environment through biodiversity projects and building wells for clean safe water
4 Working in partnership developing a pioneering model which will be led from the grass roots Farmers governments NGOs and international agencies will work together to decide how the funding is spent and work with local organisations to turn plans into action
Find out what our Cadbury Cocoa Partnership partners have to say in this video with our partners or by
reading the associated transcript here
Announcing the partnership Matt Shattock President of Cadbury Britain Ireland the Middle East
and Africa said Sustainable cocoa production is vital to Cadburys commercial success not simply the
supply of our most important ingredient but guaranteeing a reliable long term source of the right quality
cocoa produced to the high standards our business customers and our consumers expect
The majority of the Partnership funds (70) will be invested into small farms and farming villages in Ghana
which provide the cocoa beans for Cadburys UK chocolate giving it its unique and much loved taste Brands
using Ghanaian beans include Cadbury Dairy Milk Wispa Flake Creme Egg and Buttons
James Boateng Managing Director of Cadbury Ghana added In the centenary of our relationship with
the cocoa farming industry in Ghana we are incredibly proud to launch the Cadbury Cocoa Partnership in
Accra today which we hope will have a lasting impact on the lives of cocoa farmers
I grew up on a cocoa farm and owe my education to the prosperity which cocoa brought to my family and
look forward to contributing to the future of cocoa farming In Ghana there is a phrase Kookoo cobatanpa
which means Cocoa is a good parent it looks after you We hope with this initiative Cadbury and our
partners can be a good parent to cocoa
Welcoming the initiative UNDPs Resident Representative in Ghana Daouda Toureacute said UNDP strives
to promote inclusive sustainable development where everyone benefits as a country gets to grips with
fighting poverty Ghana has been producing cocoa for decades now and the industry has certainly gone
some way to improving the lives of the Ghanaian people but with this new public-private partnership
approach developed with Cadbury where both the small producer and the consumer benefit we hope to
show just how effectively sustainable cocoa production can be in generating improved opportunities for local
farmers conserving the environment and building a brighter future for younger generations
Cadbury is initially investing pound1m in 2008 as a seed fund to establish the Cadbury Cocoa Partnership with
annual funding levels rising to a steady rate of pound5m over the next several years
We also note with satisfaction the fact that Ghana signed an Economic Partnership Agreement with the EU
which allows us to continue importing cocoa butter powder and liquor at 0 tariffs This in turn benefits the
Ghanaian economy and further strengthens our partnership and investment in the country
To get a snap shot of some of the work we are doing in Ghana please click through the case
studies below
Earthshare partnership
Ghana Wells programme
Teacher training support with Digital Links International
Free newspaper for cocoa farmers
Enterprise Loans to aid skills development in Cocoa communities
Library programme
Overview
A Socially Responsible Company
Responsible business is underpinned by strong values and has a clear and compelling vision of where it is
going Over many years Cadbury has earned success on the strength of its distinctive values and clear
vision This update sets out the steps we are taking to ensure that in our present and future business as in
the past we continue to live our values
Ultimately our goals and those of our shareowners are similar a responsible and well-run company that
delivers consistently superior profits over the long-term Performance driven values led Good business and
strong values go hand in hand For our long term future and that of all our stakeholders it is in our mutual
interests that we create a world in which our business will grow and thrive
Browse this site to find out more about our CSR programme corporate governance employment practices
ethical trading food and consumer trends environment health and safety and community Discover the
different ways in which we are living up to the demands of good corporate citizenship
You can also download our latest Sustainability report
Cadbury Schweppes was included in the Companies that Count 2006 BiTCs Corporate Responsibility Index
Top 100 in association with The Sunday Times which was the fourth year that we were included in the Top
100 ranking 36th Our performance improved every year and in 2006 we scored 925 up from 89 and
87 in the previous two years
Cadbury has participated in Business in the Community (BiTC) Corporate Responsibility Index since the
Indexs inception in 2002 We use this index to help us measure and manage our global performance in
corporate and social responsibility (CSR) and to benchmark ourselves against other companies
Corporate Governance
In managing the affairs of the Group the Board of Cadbury plc is committed to achieving high standards of
business integrity ethics and professionalism across all its activities As a fundamental part of this
commitment the Board supports the highest standards of corporate governance To help achieve this the
Board has approved a set of Corporate Governance Principles These principles set out our approach to this
area and also provide a summary of our current position
The Group has a Financial Code of Ethics that applies to the Chief Executive Officer and senior financial
officers in the Group and all members of the Board sign the Cadbury Business Principles entitled Our
business principles
Further details of our corporate governance are reported in our Report amp Accounts
Non-executive directors
The Cadbury Board currently consists of seven Non-Executive Directors and three Executive Directors
Collectively they bring a valuable range of international experience and expertise as they all currently
occupy or have occupied senior positions within industry and public life All the Non-Executive Directors are
independent of management and have no relationships which could materially interfere with the exercise of
their independent judgement Subject to satisfactory performance a Non-Executive Director is appointed for an initial term of three years
After the initial three year term they may serve two additional three year terms with a maximum of nine years service on the Board as a general rule
A Non-Executive Director is expected to attend every Board Meeting including those held overseas
A Non-Executive Director is expected to make regular visits to the Groups operations to better understand its workings
Each Non-Executive Director is expected to devote such time as is necessary for the proper performance of their duties However an average time commitment of one to one and one-half days per month is suggested as a guideline
The base fee for a Non-Executive Director is pound55000 per year paid quarterly in arrears however this is increased if they are appointed chairman to a Board Committee
The Company has established a programme which enables a Non-Executive Director to allocate a portion of their fees to the purchase of Cadbury shares Currently all Non-Executive Directors use this facility
A copy of our most recent non-executive director appointment letter can be downloaded as a PDF file The
letter will be updated when any future Cadbury plc appointments are made
Terms of reference
The Board and its committees have adopted terms of reference which define their roles and responsibilities
These together with the Memorandum and Articles of Association for Cadbury plc can also be viewed here
Matters reserved for the Board
Remuneration Committee Terms of Reference
Nomination Committee Terms of Reference
CSR Committee Terms of Reference
Chief Executive Committee Terms of Reference
Memorandum and Articles of Association
Audit Committee Terms of Reference
Community
Growing community value
Growing value in the community is part of our heritage and integral to achieving our core purpose of working
together to create brands people love
We have always recognised that we do not operate in isolation but have responsibilities to our employees
and the society in which we operate Cadbury was well known for its pioneering work in the 19th century
providing housing education welfare and recreation facilities for the local community
As we have grown as a business the expectations of our consumers customers employees and wider
society have also increased Today we recognise that prosperous educated and socially inclusive
communities are central to our success
Why we invest in the community
Healthy highstreets are founded on healthy backstreets It is in the interests of business to have
prosperous communities educated employees and healthy happy consumers
Building and protecting our reputation Our good reputation has always been important to us - because
it is important to our people our brands our customers our regulators and increasingly our investors
Strengthening our company culture Community investment keeps us in touch with consumers makes
us more adaptable and responsive gives us new perspectives and skills and helps us work in more creative
ways
We invite you to find out about our commitments to growing community value throughout our business the
processes we use and see a few of the many people who have benefited from this commitment
Overview Consumer Cadbury Cocoa Partnership Corporate Governance Human Rights Employment Practices Ethical Trading Community
Purple Goes Green
Home Our Responsibilities
Human Rights
Human Rights
In 2007 we initiated a review of our global human rights strategy Following this we articulated our
approach in a document ldquoOur Approach to Human Rightsrdquo which explicitly communicates how our business
activities promote human rights This reflects both our heritage and our conviction that respect for human
rights is crucial to business success Our Approach to Human Rights reinforces the key areas where our
business activities impact on human rights and how we address this through our CSR and wider business
agenda
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
From Wikipedia
Jump to navigation search
Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Whats our path timing and tracking
Our updated global Marketing Code of Practice will be re-launched by mid 2007 with Assurance readiness by
end 2007 and limited Public Assurance by end 2008
We are sharing the code with our business partners and asking them to support our position
We will measure our progress internally during annual contract reviews
We also have a range of specific guidelines relating to vending and schools
Portion sizing - variety and moderation
We help our consumers by providing a broader range of options across all our product ranges Cadbury was
the first confectionery manufacturer to discontinue the single-serve king-size lines in 2004 We made this
move as part of our overall efforts to encourage moderation and responsible consumption We also continue
to offer a variety of smaller sizes and options Where we have larger portion sizes we make clear that they
are for sharing or for multi-occasions We have included new portion size and sharing information on our
labelling These steps will give consumers greater choice and flexibility in how they consume our products
Labelling - an industry first
Consumers tell us they know and understand our products We want to continue to be open and transparent
about what is in our products and how these compare to other foods and fit within the context of overall
intake We are providing more information and responsible consumption messaging to help keep consumers
informed We have launched a new global labelling standard together with Be Treatwise - a UK
confectionery industry consumer education campaign designed to educate consumers about the role of
treats in the diet We have also introduced GDAs (guideline daily amounts) in the UK
Vending in schools - by invitation only
We do not sell confectionery through vending machines in primary schools We vend in secondary schools by
invitation only and in line with nutritional guidelines set by the school We do not carry visuals of children
under eight years of age on our vending machines
Consumer insight and research - sharing to help others
We continue to invest in use and willingly share our consumer research and expertise to help improve
understanding of concerns both within and outside the business
In 2005 we undertook global research studies into food health diet nutrition obesity labelling and
marketing covering both developed and developing countries and have shared these studies with
governments and others This builds on work undertaken in 2004 and 2003 We are supporting with untied
and unbranded funds primary scientific research in this area
We recognise that one of the most important things we can do is to contribute to a better understanding of
the facts surrounding both current social trends and our own brands For four consecutive years Cadbury
Trebor Bassett has supported a major study in the UK that tracks annual changes in obesity in adults and
children and specifically assesses the role and position of confectionery in peoples lives - in terms of both
attitudes and behaviours Called The LIBRA Study this large-scale research initiative is part of an ongoing
effort to help improve understanding in this area of public health The study is conducted with leading
research company Taylor Nelson Sofres and supplemented by UK government statistics Previous findings
about diet and exercise from The LIBRA Study have been presented as part of scientific sessions at the
European Congress on Obesity
Energy balance - we support building understanding
We continue to endorse initiatives that promote physical activity responsible consumption of our products
through campaigns like Be Treatwise and an understanding of the energy equation particularly among
children
Community - our people are all part of their local community
We continue to support initiatives that promote physical activity and education that help improve consumer
health and the understanding and prevention of obesity These programmes are often local initiatives led by
our people working as volunteers within their local community
Business Partners - our customers and suppliers
Our efforts do not occur in isolation and we are actively engaging with government non-governmental
organisations business partners customers and our competitors asking them to inform and support our
responses Alone we are limited in what we can do but together the potential to be a force for good is great
Employee health and wellbeing - because our employees are consumers too
We are active in helping our people understand and improve their own health and wellbeing Good
stewardship begins at home We have a long tradition of looking after our employees and part of that
commitment today still involves helping them keep fit healthy and feeling good about themselves
We provide a number of local health and wellbeing programmes for employees ranging from employee
nutrition and health education through to whole-family health management schemes The programmes
include the provision of nutrition-focused on-site cafeterias hygiene and health management education
subsidised activity facilities on or off-site organised sporting and social activities and a range of courses and
counselling on matters such as work-life management relaxation and stress management managing weight
change and reducing smoking or drinking
A large number of local business units have medical facilities for basic health and safety requirements In
addition many offer employees medicals of one kind or another to give an indication of fitness to work
Guiding principles for such employee wellbeing schemes were introduced in 2005 to inform further
development and the introduction of new facilities and programmes
Science nutrition and innovation - we have increased support
Our decision-making around food and health issues is based on the sound application of science As a
company we have a large science capacity and invest significantly in research that enables us to drive
innovation and provide consumers with a wide variety of choice including alternative products (reduced fat
sugar and salt) within our core brands We have significantly increased our scientific and nutritional
resources within our business and now have Around 700 Science and Technology colleagues employed globally
A Global Science Centre at Reading University Campus UK
A new US$ 40m Science Technology and Innovation Centre in New Jersey US
A new pound145m Science Centre opened in Singapore in 2006 to serve the Asia Pacific Region
A newly appointed Director of Nutrition
Global fortification guidelines and nutritional standards
A global external Nutrition Advisory Board
Beyond our in-house research we support hundreds of scientific projects around the world For example
through the support that we give to the International Life Sciences Institute we are increasing the
understanding of how specific components in food affect and improve health
Through this investment we are reducing our reliance on the ingredients consumers are concerned about
and are reformulating products to make sure they continue to taste great and are enjoyed
Stakeholders - we value what others think
Our business decisions are underpinned by sound science together with consumer research We also listen to
the opinions and expectations of others including government shareholders campaigners customers and
our families and friends and incorporate these into our business decision making processes For example in
2001 based on concerns around marketing to children and existing science on the age when children
identify and understand advertising motives we withdrew from advertising to children under eight years of
age where they are the majority of the audience
Our Marketing Code
What is the Cadbury global marketing code
We are proud of our brands They provide fun and enjoyment as treats or refreshment and are valued
for their functional benefits They can be enjoyed as part of a balanced diet and lifestyle We provide
choice by offering variety and through innovation We encourage responsible consumption as this is
central to consumers continuing to enjoy our brands
Our consumers are at the heart of our business We are committed to listening to them and acting
responsibly in their interests and have done this successfully for generations
This Marketing Code of Practice ensures we continue to meet our responsibilities to our consumers1 Accurate and truthful
2 Attentive to local sensitivities
3 Supporting sensible consumption and balanced life style
4 Protecting children
View or download our full Marketing Code of Practice (PDF 74k)
Application and governance1 We will apply these guidelines to all forms of media including print broadcast and cable television radio
video telephone point-of-sale online advertising other internet activities and packaging
2 Prior to release all advertisements and promotions to children will be reviewed at an early stage for the appropriateness of the activity and then checked against this code before being signed off by Legal representatives
3 In addition there will be a periodic review of business unit activity by regional and global management to ensure that interpretation of the code is aligned locally regionally and globally
4 This code is reviewed annually by the groups President of Commercial Strategy and put before the companys Food Strategy Group for policy approval
Sourcesreferences
This code has been developed with reference to the following
General references
International Chamber of Commerce Framework for Responsible Food and Beverage Communications
International Chamber of Commerce httpwwwaanacomauregulatory_overviewhtml (accessed July
2004)
Principles of Food and Beverage Product Advertising Confederation des industries agro-alimentaires de IUE -
the confederation of EU food and drink industry (CIAA)
httpwwwgwadefileadmindownloadKommbranche
CIAA_Principlespdf (accessed July 2004)
World Federation of Advertisers (WFA) wwwwfanetorg
European Advertising Standards Alliance (EASA) httpwwweasa-allianceorgabout_easaenabouthtml
Marketing to Children
Self-Regulatory Guidelines for Childrens Advertising Childrens Advertising Review Unit (CARU)
httpwwwcaruorgguidelinesindexaspx (accessed July 2004)
Code for Advertising to Children Australian Association of National Advertisers (AANA) recommendations
httpwwwaanacomaucodeshtml (accessed July 2004)
Report of the APA Task Force on Advertising and Children American Psychological Association (APA)
February 20th 2004 httpwwwapaorgreleaseschildrenadspdf (accessed July 2004)
Employment Practices
Our success relies on our people Cadbury has a strong heritage in the way it respects its people and its
social responsibilities
Our people practices are guided by our key values which are to be open and honest to act with complete
integrity and to provide quality in products and services
Learn more about how Cadbury promotes diversity amp opportunity reflecting the diversity of the societies in which we operate
encourages consultation amp dialogue with employees
provides leading-edge rewards amp recognition for leading-edge performance
encourages and invests in employee development and training
provides a healthy and safe working environment
Our Business Principles are also an important part of our management processes and inform how we
work all over the world Through them we can protect and perpetuate the ethical standards that make
Cadbury a
great company - to work for and to work with Communication of these principles to all managers enables us
to work together to ensure our company maintains its reputation for ethical standards
Cadbury Cocoa Partnership
Cadbury the worlds leading confectionery company has announced the establishment of the Cadbury
Cocoa Partnership to secure the economic social and environmental sustainability of around a million cocoa
farmers and their communities in Ghana India Indonesia and the Caribbean through Long-term commitment to improving farmer livelihoods and farming communities
Direct farmer involvement alongside NGO partners and governments
Ghanaian President and United Nations pledge their support
This ground-breaking initiative which will be carried out in partnership with the United Nations Development
Programme (UNDP) and other partners marks 100 years since the Cadbury brothers first began trading in
Ghana and aims to holistically support the development of sustainable cocoa growing communities
Research by the Institute of Development Studies Sussex and the University of Ghana Legon into
Sustainable Cocoa Production in Ghana funded by Cadbury showed that the average production for a
cocoa farmer has dropped to only 40 of potential yield and that cocoa farming has become less attractive
to the next potential generation of farmers The Cadbury Cocoa Partnership programme aims to address
some of the root causes of these issues - improving farmer productivity and helping to attract the next
generation into cocoa farming
The Partnership will focus on1 Improving cocoa farmer incomes by helping farmers increase their yields and produce top quality beans
2 Introducing new sources of rural income through microfinance and business support to kick start new rural businesses and introduce additional income streams such as growing other crops
3 Investing in community led development to improve life in cocoa communities eg supporting education through schools and libraries supporting the environment through biodiversity projects and building wells for clean safe water
4 Working in partnership developing a pioneering model which will be led from the grass roots Farmers governments NGOs and international agencies will work together to decide how the funding is spent and work with local organisations to turn plans into action
Find out what our Cadbury Cocoa Partnership partners have to say in this video with our partners or by
reading the associated transcript here
Announcing the partnership Matt Shattock President of Cadbury Britain Ireland the Middle East
and Africa said Sustainable cocoa production is vital to Cadburys commercial success not simply the
supply of our most important ingredient but guaranteeing a reliable long term source of the right quality
cocoa produced to the high standards our business customers and our consumers expect
The majority of the Partnership funds (70) will be invested into small farms and farming villages in Ghana
which provide the cocoa beans for Cadburys UK chocolate giving it its unique and much loved taste Brands
using Ghanaian beans include Cadbury Dairy Milk Wispa Flake Creme Egg and Buttons
James Boateng Managing Director of Cadbury Ghana added In the centenary of our relationship with
the cocoa farming industry in Ghana we are incredibly proud to launch the Cadbury Cocoa Partnership in
Accra today which we hope will have a lasting impact on the lives of cocoa farmers
I grew up on a cocoa farm and owe my education to the prosperity which cocoa brought to my family and
look forward to contributing to the future of cocoa farming In Ghana there is a phrase Kookoo cobatanpa
which means Cocoa is a good parent it looks after you We hope with this initiative Cadbury and our
partners can be a good parent to cocoa
Welcoming the initiative UNDPs Resident Representative in Ghana Daouda Toureacute said UNDP strives
to promote inclusive sustainable development where everyone benefits as a country gets to grips with
fighting poverty Ghana has been producing cocoa for decades now and the industry has certainly gone
some way to improving the lives of the Ghanaian people but with this new public-private partnership
approach developed with Cadbury where both the small producer and the consumer benefit we hope to
show just how effectively sustainable cocoa production can be in generating improved opportunities for local
farmers conserving the environment and building a brighter future for younger generations
Cadbury is initially investing pound1m in 2008 as a seed fund to establish the Cadbury Cocoa Partnership with
annual funding levels rising to a steady rate of pound5m over the next several years
We also note with satisfaction the fact that Ghana signed an Economic Partnership Agreement with the EU
which allows us to continue importing cocoa butter powder and liquor at 0 tariffs This in turn benefits the
Ghanaian economy and further strengthens our partnership and investment in the country
To get a snap shot of some of the work we are doing in Ghana please click through the case
studies below
Earthshare partnership
Ghana Wells programme
Teacher training support with Digital Links International
Free newspaper for cocoa farmers
Enterprise Loans to aid skills development in Cocoa communities
Library programme
Overview
A Socially Responsible Company
Responsible business is underpinned by strong values and has a clear and compelling vision of where it is
going Over many years Cadbury has earned success on the strength of its distinctive values and clear
vision This update sets out the steps we are taking to ensure that in our present and future business as in
the past we continue to live our values
Ultimately our goals and those of our shareowners are similar a responsible and well-run company that
delivers consistently superior profits over the long-term Performance driven values led Good business and
strong values go hand in hand For our long term future and that of all our stakeholders it is in our mutual
interests that we create a world in which our business will grow and thrive
Browse this site to find out more about our CSR programme corporate governance employment practices
ethical trading food and consumer trends environment health and safety and community Discover the
different ways in which we are living up to the demands of good corporate citizenship
You can also download our latest Sustainability report
Cadbury Schweppes was included in the Companies that Count 2006 BiTCs Corporate Responsibility Index
Top 100 in association with The Sunday Times which was the fourth year that we were included in the Top
100 ranking 36th Our performance improved every year and in 2006 we scored 925 up from 89 and
87 in the previous two years
Cadbury has participated in Business in the Community (BiTC) Corporate Responsibility Index since the
Indexs inception in 2002 We use this index to help us measure and manage our global performance in
corporate and social responsibility (CSR) and to benchmark ourselves against other companies
Corporate Governance
In managing the affairs of the Group the Board of Cadbury plc is committed to achieving high standards of
business integrity ethics and professionalism across all its activities As a fundamental part of this
commitment the Board supports the highest standards of corporate governance To help achieve this the
Board has approved a set of Corporate Governance Principles These principles set out our approach to this
area and also provide a summary of our current position
The Group has a Financial Code of Ethics that applies to the Chief Executive Officer and senior financial
officers in the Group and all members of the Board sign the Cadbury Business Principles entitled Our
business principles
Further details of our corporate governance are reported in our Report amp Accounts
Non-executive directors
The Cadbury Board currently consists of seven Non-Executive Directors and three Executive Directors
Collectively they bring a valuable range of international experience and expertise as they all currently
occupy or have occupied senior positions within industry and public life All the Non-Executive Directors are
independent of management and have no relationships which could materially interfere with the exercise of
their independent judgement Subject to satisfactory performance a Non-Executive Director is appointed for an initial term of three years
After the initial three year term they may serve two additional three year terms with a maximum of nine years service on the Board as a general rule
A Non-Executive Director is expected to attend every Board Meeting including those held overseas
A Non-Executive Director is expected to make regular visits to the Groups operations to better understand its workings
Each Non-Executive Director is expected to devote such time as is necessary for the proper performance of their duties However an average time commitment of one to one and one-half days per month is suggested as a guideline
The base fee for a Non-Executive Director is pound55000 per year paid quarterly in arrears however this is increased if they are appointed chairman to a Board Committee
The Company has established a programme which enables a Non-Executive Director to allocate a portion of their fees to the purchase of Cadbury shares Currently all Non-Executive Directors use this facility
A copy of our most recent non-executive director appointment letter can be downloaded as a PDF file The
letter will be updated when any future Cadbury plc appointments are made
Terms of reference
The Board and its committees have adopted terms of reference which define their roles and responsibilities
These together with the Memorandum and Articles of Association for Cadbury plc can also be viewed here
Matters reserved for the Board
Remuneration Committee Terms of Reference
Nomination Committee Terms of Reference
CSR Committee Terms of Reference
Chief Executive Committee Terms of Reference
Memorandum and Articles of Association
Audit Committee Terms of Reference
Community
Growing community value
Growing value in the community is part of our heritage and integral to achieving our core purpose of working
together to create brands people love
We have always recognised that we do not operate in isolation but have responsibilities to our employees
and the society in which we operate Cadbury was well known for its pioneering work in the 19th century
providing housing education welfare and recreation facilities for the local community
As we have grown as a business the expectations of our consumers customers employees and wider
society have also increased Today we recognise that prosperous educated and socially inclusive
communities are central to our success
Why we invest in the community
Healthy highstreets are founded on healthy backstreets It is in the interests of business to have
prosperous communities educated employees and healthy happy consumers
Building and protecting our reputation Our good reputation has always been important to us - because
it is important to our people our brands our customers our regulators and increasingly our investors
Strengthening our company culture Community investment keeps us in touch with consumers makes
us more adaptable and responsive gives us new perspectives and skills and helps us work in more creative
ways
We invite you to find out about our commitments to growing community value throughout our business the
processes we use and see a few of the many people who have benefited from this commitment
Overview Consumer Cadbury Cocoa Partnership Corporate Governance Human Rights Employment Practices Ethical Trading Community
Purple Goes Green
Home Our Responsibilities
Human Rights
Human Rights
In 2007 we initiated a review of our global human rights strategy Following this we articulated our
approach in a document ldquoOur Approach to Human Rightsrdquo which explicitly communicates how our business
activities promote human rights This reflects both our heritage and our conviction that respect for human
rights is crucial to business success Our Approach to Human Rights reinforces the key areas where our
business activities impact on human rights and how we address this through our CSR and wider business
agenda
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
From Wikipedia
Jump to navigation search
Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
governments and others This builds on work undertaken in 2004 and 2003 We are supporting with untied
and unbranded funds primary scientific research in this area
We recognise that one of the most important things we can do is to contribute to a better understanding of
the facts surrounding both current social trends and our own brands For four consecutive years Cadbury
Trebor Bassett has supported a major study in the UK that tracks annual changes in obesity in adults and
children and specifically assesses the role and position of confectionery in peoples lives - in terms of both
attitudes and behaviours Called The LIBRA Study this large-scale research initiative is part of an ongoing
effort to help improve understanding in this area of public health The study is conducted with leading
research company Taylor Nelson Sofres and supplemented by UK government statistics Previous findings
about diet and exercise from The LIBRA Study have been presented as part of scientific sessions at the
European Congress on Obesity
Energy balance - we support building understanding
We continue to endorse initiatives that promote physical activity responsible consumption of our products
through campaigns like Be Treatwise and an understanding of the energy equation particularly among
children
Community - our people are all part of their local community
We continue to support initiatives that promote physical activity and education that help improve consumer
health and the understanding and prevention of obesity These programmes are often local initiatives led by
our people working as volunteers within their local community
Business Partners - our customers and suppliers
Our efforts do not occur in isolation and we are actively engaging with government non-governmental
organisations business partners customers and our competitors asking them to inform and support our
responses Alone we are limited in what we can do but together the potential to be a force for good is great
Employee health and wellbeing - because our employees are consumers too
We are active in helping our people understand and improve their own health and wellbeing Good
stewardship begins at home We have a long tradition of looking after our employees and part of that
commitment today still involves helping them keep fit healthy and feeling good about themselves
We provide a number of local health and wellbeing programmes for employees ranging from employee
nutrition and health education through to whole-family health management schemes The programmes
include the provision of nutrition-focused on-site cafeterias hygiene and health management education
subsidised activity facilities on or off-site organised sporting and social activities and a range of courses and
counselling on matters such as work-life management relaxation and stress management managing weight
change and reducing smoking or drinking
A large number of local business units have medical facilities for basic health and safety requirements In
addition many offer employees medicals of one kind or another to give an indication of fitness to work
Guiding principles for such employee wellbeing schemes were introduced in 2005 to inform further
development and the introduction of new facilities and programmes
Science nutrition and innovation - we have increased support
Our decision-making around food and health issues is based on the sound application of science As a
company we have a large science capacity and invest significantly in research that enables us to drive
innovation and provide consumers with a wide variety of choice including alternative products (reduced fat
sugar and salt) within our core brands We have significantly increased our scientific and nutritional
resources within our business and now have Around 700 Science and Technology colleagues employed globally
A Global Science Centre at Reading University Campus UK
A new US$ 40m Science Technology and Innovation Centre in New Jersey US
A new pound145m Science Centre opened in Singapore in 2006 to serve the Asia Pacific Region
A newly appointed Director of Nutrition
Global fortification guidelines and nutritional standards
A global external Nutrition Advisory Board
Beyond our in-house research we support hundreds of scientific projects around the world For example
through the support that we give to the International Life Sciences Institute we are increasing the
understanding of how specific components in food affect and improve health
Through this investment we are reducing our reliance on the ingredients consumers are concerned about
and are reformulating products to make sure they continue to taste great and are enjoyed
Stakeholders - we value what others think
Our business decisions are underpinned by sound science together with consumer research We also listen to
the opinions and expectations of others including government shareholders campaigners customers and
our families and friends and incorporate these into our business decision making processes For example in
2001 based on concerns around marketing to children and existing science on the age when children
identify and understand advertising motives we withdrew from advertising to children under eight years of
age where they are the majority of the audience
Our Marketing Code
What is the Cadbury global marketing code
We are proud of our brands They provide fun and enjoyment as treats or refreshment and are valued
for their functional benefits They can be enjoyed as part of a balanced diet and lifestyle We provide
choice by offering variety and through innovation We encourage responsible consumption as this is
central to consumers continuing to enjoy our brands
Our consumers are at the heart of our business We are committed to listening to them and acting
responsibly in their interests and have done this successfully for generations
This Marketing Code of Practice ensures we continue to meet our responsibilities to our consumers1 Accurate and truthful
2 Attentive to local sensitivities
3 Supporting sensible consumption and balanced life style
4 Protecting children
View or download our full Marketing Code of Practice (PDF 74k)
Application and governance1 We will apply these guidelines to all forms of media including print broadcast and cable television radio
video telephone point-of-sale online advertising other internet activities and packaging
2 Prior to release all advertisements and promotions to children will be reviewed at an early stage for the appropriateness of the activity and then checked against this code before being signed off by Legal representatives
3 In addition there will be a periodic review of business unit activity by regional and global management to ensure that interpretation of the code is aligned locally regionally and globally
4 This code is reviewed annually by the groups President of Commercial Strategy and put before the companys Food Strategy Group for policy approval
Sourcesreferences
This code has been developed with reference to the following
General references
International Chamber of Commerce Framework for Responsible Food and Beverage Communications
International Chamber of Commerce httpwwwaanacomauregulatory_overviewhtml (accessed July
2004)
Principles of Food and Beverage Product Advertising Confederation des industries agro-alimentaires de IUE -
the confederation of EU food and drink industry (CIAA)
httpwwwgwadefileadmindownloadKommbranche
CIAA_Principlespdf (accessed July 2004)
World Federation of Advertisers (WFA) wwwwfanetorg
European Advertising Standards Alliance (EASA) httpwwweasa-allianceorgabout_easaenabouthtml
Marketing to Children
Self-Regulatory Guidelines for Childrens Advertising Childrens Advertising Review Unit (CARU)
httpwwwcaruorgguidelinesindexaspx (accessed July 2004)
Code for Advertising to Children Australian Association of National Advertisers (AANA) recommendations
httpwwwaanacomaucodeshtml (accessed July 2004)
Report of the APA Task Force on Advertising and Children American Psychological Association (APA)
February 20th 2004 httpwwwapaorgreleaseschildrenadspdf (accessed July 2004)
Employment Practices
Our success relies on our people Cadbury has a strong heritage in the way it respects its people and its
social responsibilities
Our people practices are guided by our key values which are to be open and honest to act with complete
integrity and to provide quality in products and services
Learn more about how Cadbury promotes diversity amp opportunity reflecting the diversity of the societies in which we operate
encourages consultation amp dialogue with employees
provides leading-edge rewards amp recognition for leading-edge performance
encourages and invests in employee development and training
provides a healthy and safe working environment
Our Business Principles are also an important part of our management processes and inform how we
work all over the world Through them we can protect and perpetuate the ethical standards that make
Cadbury a
great company - to work for and to work with Communication of these principles to all managers enables us
to work together to ensure our company maintains its reputation for ethical standards
Cadbury Cocoa Partnership
Cadbury the worlds leading confectionery company has announced the establishment of the Cadbury
Cocoa Partnership to secure the economic social and environmental sustainability of around a million cocoa
farmers and their communities in Ghana India Indonesia and the Caribbean through Long-term commitment to improving farmer livelihoods and farming communities
Direct farmer involvement alongside NGO partners and governments
Ghanaian President and United Nations pledge their support
This ground-breaking initiative which will be carried out in partnership with the United Nations Development
Programme (UNDP) and other partners marks 100 years since the Cadbury brothers first began trading in
Ghana and aims to holistically support the development of sustainable cocoa growing communities
Research by the Institute of Development Studies Sussex and the University of Ghana Legon into
Sustainable Cocoa Production in Ghana funded by Cadbury showed that the average production for a
cocoa farmer has dropped to only 40 of potential yield and that cocoa farming has become less attractive
to the next potential generation of farmers The Cadbury Cocoa Partnership programme aims to address
some of the root causes of these issues - improving farmer productivity and helping to attract the next
generation into cocoa farming
The Partnership will focus on1 Improving cocoa farmer incomes by helping farmers increase their yields and produce top quality beans
2 Introducing new sources of rural income through microfinance and business support to kick start new rural businesses and introduce additional income streams such as growing other crops
3 Investing in community led development to improve life in cocoa communities eg supporting education through schools and libraries supporting the environment through biodiversity projects and building wells for clean safe water
4 Working in partnership developing a pioneering model which will be led from the grass roots Farmers governments NGOs and international agencies will work together to decide how the funding is spent and work with local organisations to turn plans into action
Find out what our Cadbury Cocoa Partnership partners have to say in this video with our partners or by
reading the associated transcript here
Announcing the partnership Matt Shattock President of Cadbury Britain Ireland the Middle East
and Africa said Sustainable cocoa production is vital to Cadburys commercial success not simply the
supply of our most important ingredient but guaranteeing a reliable long term source of the right quality
cocoa produced to the high standards our business customers and our consumers expect
The majority of the Partnership funds (70) will be invested into small farms and farming villages in Ghana
which provide the cocoa beans for Cadburys UK chocolate giving it its unique and much loved taste Brands
using Ghanaian beans include Cadbury Dairy Milk Wispa Flake Creme Egg and Buttons
James Boateng Managing Director of Cadbury Ghana added In the centenary of our relationship with
the cocoa farming industry in Ghana we are incredibly proud to launch the Cadbury Cocoa Partnership in
Accra today which we hope will have a lasting impact on the lives of cocoa farmers
I grew up on a cocoa farm and owe my education to the prosperity which cocoa brought to my family and
look forward to contributing to the future of cocoa farming In Ghana there is a phrase Kookoo cobatanpa
which means Cocoa is a good parent it looks after you We hope with this initiative Cadbury and our
partners can be a good parent to cocoa
Welcoming the initiative UNDPs Resident Representative in Ghana Daouda Toureacute said UNDP strives
to promote inclusive sustainable development where everyone benefits as a country gets to grips with
fighting poverty Ghana has been producing cocoa for decades now and the industry has certainly gone
some way to improving the lives of the Ghanaian people but with this new public-private partnership
approach developed with Cadbury where both the small producer and the consumer benefit we hope to
show just how effectively sustainable cocoa production can be in generating improved opportunities for local
farmers conserving the environment and building a brighter future for younger generations
Cadbury is initially investing pound1m in 2008 as a seed fund to establish the Cadbury Cocoa Partnership with
annual funding levels rising to a steady rate of pound5m over the next several years
We also note with satisfaction the fact that Ghana signed an Economic Partnership Agreement with the EU
which allows us to continue importing cocoa butter powder and liquor at 0 tariffs This in turn benefits the
Ghanaian economy and further strengthens our partnership and investment in the country
To get a snap shot of some of the work we are doing in Ghana please click through the case
studies below
Earthshare partnership
Ghana Wells programme
Teacher training support with Digital Links International
Free newspaper for cocoa farmers
Enterprise Loans to aid skills development in Cocoa communities
Library programme
Overview
A Socially Responsible Company
Responsible business is underpinned by strong values and has a clear and compelling vision of where it is
going Over many years Cadbury has earned success on the strength of its distinctive values and clear
vision This update sets out the steps we are taking to ensure that in our present and future business as in
the past we continue to live our values
Ultimately our goals and those of our shareowners are similar a responsible and well-run company that
delivers consistently superior profits over the long-term Performance driven values led Good business and
strong values go hand in hand For our long term future and that of all our stakeholders it is in our mutual
interests that we create a world in which our business will grow and thrive
Browse this site to find out more about our CSR programme corporate governance employment practices
ethical trading food and consumer trends environment health and safety and community Discover the
different ways in which we are living up to the demands of good corporate citizenship
You can also download our latest Sustainability report
Cadbury Schweppes was included in the Companies that Count 2006 BiTCs Corporate Responsibility Index
Top 100 in association with The Sunday Times which was the fourth year that we were included in the Top
100 ranking 36th Our performance improved every year and in 2006 we scored 925 up from 89 and
87 in the previous two years
Cadbury has participated in Business in the Community (BiTC) Corporate Responsibility Index since the
Indexs inception in 2002 We use this index to help us measure and manage our global performance in
corporate and social responsibility (CSR) and to benchmark ourselves against other companies
Corporate Governance
In managing the affairs of the Group the Board of Cadbury plc is committed to achieving high standards of
business integrity ethics and professionalism across all its activities As a fundamental part of this
commitment the Board supports the highest standards of corporate governance To help achieve this the
Board has approved a set of Corporate Governance Principles These principles set out our approach to this
area and also provide a summary of our current position
The Group has a Financial Code of Ethics that applies to the Chief Executive Officer and senior financial
officers in the Group and all members of the Board sign the Cadbury Business Principles entitled Our
business principles
Further details of our corporate governance are reported in our Report amp Accounts
Non-executive directors
The Cadbury Board currently consists of seven Non-Executive Directors and three Executive Directors
Collectively they bring a valuable range of international experience and expertise as they all currently
occupy or have occupied senior positions within industry and public life All the Non-Executive Directors are
independent of management and have no relationships which could materially interfere with the exercise of
their independent judgement Subject to satisfactory performance a Non-Executive Director is appointed for an initial term of three years
After the initial three year term they may serve two additional three year terms with a maximum of nine years service on the Board as a general rule
A Non-Executive Director is expected to attend every Board Meeting including those held overseas
A Non-Executive Director is expected to make regular visits to the Groups operations to better understand its workings
Each Non-Executive Director is expected to devote such time as is necessary for the proper performance of their duties However an average time commitment of one to one and one-half days per month is suggested as a guideline
The base fee for a Non-Executive Director is pound55000 per year paid quarterly in arrears however this is increased if they are appointed chairman to a Board Committee
The Company has established a programme which enables a Non-Executive Director to allocate a portion of their fees to the purchase of Cadbury shares Currently all Non-Executive Directors use this facility
A copy of our most recent non-executive director appointment letter can be downloaded as a PDF file The
letter will be updated when any future Cadbury plc appointments are made
Terms of reference
The Board and its committees have adopted terms of reference which define their roles and responsibilities
These together with the Memorandum and Articles of Association for Cadbury plc can also be viewed here
Matters reserved for the Board
Remuneration Committee Terms of Reference
Nomination Committee Terms of Reference
CSR Committee Terms of Reference
Chief Executive Committee Terms of Reference
Memorandum and Articles of Association
Audit Committee Terms of Reference
Community
Growing community value
Growing value in the community is part of our heritage and integral to achieving our core purpose of working
together to create brands people love
We have always recognised that we do not operate in isolation but have responsibilities to our employees
and the society in which we operate Cadbury was well known for its pioneering work in the 19th century
providing housing education welfare and recreation facilities for the local community
As we have grown as a business the expectations of our consumers customers employees and wider
society have also increased Today we recognise that prosperous educated and socially inclusive
communities are central to our success
Why we invest in the community
Healthy highstreets are founded on healthy backstreets It is in the interests of business to have
prosperous communities educated employees and healthy happy consumers
Building and protecting our reputation Our good reputation has always been important to us - because
it is important to our people our brands our customers our regulators and increasingly our investors
Strengthening our company culture Community investment keeps us in touch with consumers makes
us more adaptable and responsive gives us new perspectives and skills and helps us work in more creative
ways
We invite you to find out about our commitments to growing community value throughout our business the
processes we use and see a few of the many people who have benefited from this commitment
Overview Consumer Cadbury Cocoa Partnership Corporate Governance Human Rights Employment Practices Ethical Trading Community
Purple Goes Green
Home Our Responsibilities
Human Rights
Human Rights
In 2007 we initiated a review of our global human rights strategy Following this we articulated our
approach in a document ldquoOur Approach to Human Rightsrdquo which explicitly communicates how our business
activities promote human rights This reflects both our heritage and our conviction that respect for human
rights is crucial to business success Our Approach to Human Rights reinforces the key areas where our
business activities impact on human rights and how we address this through our CSR and wider business
agenda
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
From Wikipedia
Jump to navigation search
Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
include the provision of nutrition-focused on-site cafeterias hygiene and health management education
subsidised activity facilities on or off-site organised sporting and social activities and a range of courses and
counselling on matters such as work-life management relaxation and stress management managing weight
change and reducing smoking or drinking
A large number of local business units have medical facilities for basic health and safety requirements In
addition many offer employees medicals of one kind or another to give an indication of fitness to work
Guiding principles for such employee wellbeing schemes were introduced in 2005 to inform further
development and the introduction of new facilities and programmes
Science nutrition and innovation - we have increased support
Our decision-making around food and health issues is based on the sound application of science As a
company we have a large science capacity and invest significantly in research that enables us to drive
innovation and provide consumers with a wide variety of choice including alternative products (reduced fat
sugar and salt) within our core brands We have significantly increased our scientific and nutritional
resources within our business and now have Around 700 Science and Technology colleagues employed globally
A Global Science Centre at Reading University Campus UK
A new US$ 40m Science Technology and Innovation Centre in New Jersey US
A new pound145m Science Centre opened in Singapore in 2006 to serve the Asia Pacific Region
A newly appointed Director of Nutrition
Global fortification guidelines and nutritional standards
A global external Nutrition Advisory Board
Beyond our in-house research we support hundreds of scientific projects around the world For example
through the support that we give to the International Life Sciences Institute we are increasing the
understanding of how specific components in food affect and improve health
Through this investment we are reducing our reliance on the ingredients consumers are concerned about
and are reformulating products to make sure they continue to taste great and are enjoyed
Stakeholders - we value what others think
Our business decisions are underpinned by sound science together with consumer research We also listen to
the opinions and expectations of others including government shareholders campaigners customers and
our families and friends and incorporate these into our business decision making processes For example in
2001 based on concerns around marketing to children and existing science on the age when children
identify and understand advertising motives we withdrew from advertising to children under eight years of
age where they are the majority of the audience
Our Marketing Code
What is the Cadbury global marketing code
We are proud of our brands They provide fun and enjoyment as treats or refreshment and are valued
for their functional benefits They can be enjoyed as part of a balanced diet and lifestyle We provide
choice by offering variety and through innovation We encourage responsible consumption as this is
central to consumers continuing to enjoy our brands
Our consumers are at the heart of our business We are committed to listening to them and acting
responsibly in their interests and have done this successfully for generations
This Marketing Code of Practice ensures we continue to meet our responsibilities to our consumers1 Accurate and truthful
2 Attentive to local sensitivities
3 Supporting sensible consumption and balanced life style
4 Protecting children
View or download our full Marketing Code of Practice (PDF 74k)
Application and governance1 We will apply these guidelines to all forms of media including print broadcast and cable television radio
video telephone point-of-sale online advertising other internet activities and packaging
2 Prior to release all advertisements and promotions to children will be reviewed at an early stage for the appropriateness of the activity and then checked against this code before being signed off by Legal representatives
3 In addition there will be a periodic review of business unit activity by regional and global management to ensure that interpretation of the code is aligned locally regionally and globally
4 This code is reviewed annually by the groups President of Commercial Strategy and put before the companys Food Strategy Group for policy approval
Sourcesreferences
This code has been developed with reference to the following
General references
International Chamber of Commerce Framework for Responsible Food and Beverage Communications
International Chamber of Commerce httpwwwaanacomauregulatory_overviewhtml (accessed July
2004)
Principles of Food and Beverage Product Advertising Confederation des industries agro-alimentaires de IUE -
the confederation of EU food and drink industry (CIAA)
httpwwwgwadefileadmindownloadKommbranche
CIAA_Principlespdf (accessed July 2004)
World Federation of Advertisers (WFA) wwwwfanetorg
European Advertising Standards Alliance (EASA) httpwwweasa-allianceorgabout_easaenabouthtml
Marketing to Children
Self-Regulatory Guidelines for Childrens Advertising Childrens Advertising Review Unit (CARU)
httpwwwcaruorgguidelinesindexaspx (accessed July 2004)
Code for Advertising to Children Australian Association of National Advertisers (AANA) recommendations
httpwwwaanacomaucodeshtml (accessed July 2004)
Report of the APA Task Force on Advertising and Children American Psychological Association (APA)
February 20th 2004 httpwwwapaorgreleaseschildrenadspdf (accessed July 2004)
Employment Practices
Our success relies on our people Cadbury has a strong heritage in the way it respects its people and its
social responsibilities
Our people practices are guided by our key values which are to be open and honest to act with complete
integrity and to provide quality in products and services
Learn more about how Cadbury promotes diversity amp opportunity reflecting the diversity of the societies in which we operate
encourages consultation amp dialogue with employees
provides leading-edge rewards amp recognition for leading-edge performance
encourages and invests in employee development and training
provides a healthy and safe working environment
Our Business Principles are also an important part of our management processes and inform how we
work all over the world Through them we can protect and perpetuate the ethical standards that make
Cadbury a
great company - to work for and to work with Communication of these principles to all managers enables us
to work together to ensure our company maintains its reputation for ethical standards
Cadbury Cocoa Partnership
Cadbury the worlds leading confectionery company has announced the establishment of the Cadbury
Cocoa Partnership to secure the economic social and environmental sustainability of around a million cocoa
farmers and their communities in Ghana India Indonesia and the Caribbean through Long-term commitment to improving farmer livelihoods and farming communities
Direct farmer involvement alongside NGO partners and governments
Ghanaian President and United Nations pledge their support
This ground-breaking initiative which will be carried out in partnership with the United Nations Development
Programme (UNDP) and other partners marks 100 years since the Cadbury brothers first began trading in
Ghana and aims to holistically support the development of sustainable cocoa growing communities
Research by the Institute of Development Studies Sussex and the University of Ghana Legon into
Sustainable Cocoa Production in Ghana funded by Cadbury showed that the average production for a
cocoa farmer has dropped to only 40 of potential yield and that cocoa farming has become less attractive
to the next potential generation of farmers The Cadbury Cocoa Partnership programme aims to address
some of the root causes of these issues - improving farmer productivity and helping to attract the next
generation into cocoa farming
The Partnership will focus on1 Improving cocoa farmer incomes by helping farmers increase their yields and produce top quality beans
2 Introducing new sources of rural income through microfinance and business support to kick start new rural businesses and introduce additional income streams such as growing other crops
3 Investing in community led development to improve life in cocoa communities eg supporting education through schools and libraries supporting the environment through biodiversity projects and building wells for clean safe water
4 Working in partnership developing a pioneering model which will be led from the grass roots Farmers governments NGOs and international agencies will work together to decide how the funding is spent and work with local organisations to turn plans into action
Find out what our Cadbury Cocoa Partnership partners have to say in this video with our partners or by
reading the associated transcript here
Announcing the partnership Matt Shattock President of Cadbury Britain Ireland the Middle East
and Africa said Sustainable cocoa production is vital to Cadburys commercial success not simply the
supply of our most important ingredient but guaranteeing a reliable long term source of the right quality
cocoa produced to the high standards our business customers and our consumers expect
The majority of the Partnership funds (70) will be invested into small farms and farming villages in Ghana
which provide the cocoa beans for Cadburys UK chocolate giving it its unique and much loved taste Brands
using Ghanaian beans include Cadbury Dairy Milk Wispa Flake Creme Egg and Buttons
James Boateng Managing Director of Cadbury Ghana added In the centenary of our relationship with
the cocoa farming industry in Ghana we are incredibly proud to launch the Cadbury Cocoa Partnership in
Accra today which we hope will have a lasting impact on the lives of cocoa farmers
I grew up on a cocoa farm and owe my education to the prosperity which cocoa brought to my family and
look forward to contributing to the future of cocoa farming In Ghana there is a phrase Kookoo cobatanpa
which means Cocoa is a good parent it looks after you We hope with this initiative Cadbury and our
partners can be a good parent to cocoa
Welcoming the initiative UNDPs Resident Representative in Ghana Daouda Toureacute said UNDP strives
to promote inclusive sustainable development where everyone benefits as a country gets to grips with
fighting poverty Ghana has been producing cocoa for decades now and the industry has certainly gone
some way to improving the lives of the Ghanaian people but with this new public-private partnership
approach developed with Cadbury where both the small producer and the consumer benefit we hope to
show just how effectively sustainable cocoa production can be in generating improved opportunities for local
farmers conserving the environment and building a brighter future for younger generations
Cadbury is initially investing pound1m in 2008 as a seed fund to establish the Cadbury Cocoa Partnership with
annual funding levels rising to a steady rate of pound5m over the next several years
We also note with satisfaction the fact that Ghana signed an Economic Partnership Agreement with the EU
which allows us to continue importing cocoa butter powder and liquor at 0 tariffs This in turn benefits the
Ghanaian economy and further strengthens our partnership and investment in the country
To get a snap shot of some of the work we are doing in Ghana please click through the case
studies below
Earthshare partnership
Ghana Wells programme
Teacher training support with Digital Links International
Free newspaper for cocoa farmers
Enterprise Loans to aid skills development in Cocoa communities
Library programme
Overview
A Socially Responsible Company
Responsible business is underpinned by strong values and has a clear and compelling vision of where it is
going Over many years Cadbury has earned success on the strength of its distinctive values and clear
vision This update sets out the steps we are taking to ensure that in our present and future business as in
the past we continue to live our values
Ultimately our goals and those of our shareowners are similar a responsible and well-run company that
delivers consistently superior profits over the long-term Performance driven values led Good business and
strong values go hand in hand For our long term future and that of all our stakeholders it is in our mutual
interests that we create a world in which our business will grow and thrive
Browse this site to find out more about our CSR programme corporate governance employment practices
ethical trading food and consumer trends environment health and safety and community Discover the
different ways in which we are living up to the demands of good corporate citizenship
You can also download our latest Sustainability report
Cadbury Schweppes was included in the Companies that Count 2006 BiTCs Corporate Responsibility Index
Top 100 in association with The Sunday Times which was the fourth year that we were included in the Top
100 ranking 36th Our performance improved every year and in 2006 we scored 925 up from 89 and
87 in the previous two years
Cadbury has participated in Business in the Community (BiTC) Corporate Responsibility Index since the
Indexs inception in 2002 We use this index to help us measure and manage our global performance in
corporate and social responsibility (CSR) and to benchmark ourselves against other companies
Corporate Governance
In managing the affairs of the Group the Board of Cadbury plc is committed to achieving high standards of
business integrity ethics and professionalism across all its activities As a fundamental part of this
commitment the Board supports the highest standards of corporate governance To help achieve this the
Board has approved a set of Corporate Governance Principles These principles set out our approach to this
area and also provide a summary of our current position
The Group has a Financial Code of Ethics that applies to the Chief Executive Officer and senior financial
officers in the Group and all members of the Board sign the Cadbury Business Principles entitled Our
business principles
Further details of our corporate governance are reported in our Report amp Accounts
Non-executive directors
The Cadbury Board currently consists of seven Non-Executive Directors and three Executive Directors
Collectively they bring a valuable range of international experience and expertise as they all currently
occupy or have occupied senior positions within industry and public life All the Non-Executive Directors are
independent of management and have no relationships which could materially interfere with the exercise of
their independent judgement Subject to satisfactory performance a Non-Executive Director is appointed for an initial term of three years
After the initial three year term they may serve two additional three year terms with a maximum of nine years service on the Board as a general rule
A Non-Executive Director is expected to attend every Board Meeting including those held overseas
A Non-Executive Director is expected to make regular visits to the Groups operations to better understand its workings
Each Non-Executive Director is expected to devote such time as is necessary for the proper performance of their duties However an average time commitment of one to one and one-half days per month is suggested as a guideline
The base fee for a Non-Executive Director is pound55000 per year paid quarterly in arrears however this is increased if they are appointed chairman to a Board Committee
The Company has established a programme which enables a Non-Executive Director to allocate a portion of their fees to the purchase of Cadbury shares Currently all Non-Executive Directors use this facility
A copy of our most recent non-executive director appointment letter can be downloaded as a PDF file The
letter will be updated when any future Cadbury plc appointments are made
Terms of reference
The Board and its committees have adopted terms of reference which define their roles and responsibilities
These together with the Memorandum and Articles of Association for Cadbury plc can also be viewed here
Matters reserved for the Board
Remuneration Committee Terms of Reference
Nomination Committee Terms of Reference
CSR Committee Terms of Reference
Chief Executive Committee Terms of Reference
Memorandum and Articles of Association
Audit Committee Terms of Reference
Community
Growing community value
Growing value in the community is part of our heritage and integral to achieving our core purpose of working
together to create brands people love
We have always recognised that we do not operate in isolation but have responsibilities to our employees
and the society in which we operate Cadbury was well known for its pioneering work in the 19th century
providing housing education welfare and recreation facilities for the local community
As we have grown as a business the expectations of our consumers customers employees and wider
society have also increased Today we recognise that prosperous educated and socially inclusive
communities are central to our success
Why we invest in the community
Healthy highstreets are founded on healthy backstreets It is in the interests of business to have
prosperous communities educated employees and healthy happy consumers
Building and protecting our reputation Our good reputation has always been important to us - because
it is important to our people our brands our customers our regulators and increasingly our investors
Strengthening our company culture Community investment keeps us in touch with consumers makes
us more adaptable and responsive gives us new perspectives and skills and helps us work in more creative
ways
We invite you to find out about our commitments to growing community value throughout our business the
processes we use and see a few of the many people who have benefited from this commitment
Overview Consumer Cadbury Cocoa Partnership Corporate Governance Human Rights Employment Practices Ethical Trading Community
Purple Goes Green
Home Our Responsibilities
Human Rights
Human Rights
In 2007 we initiated a review of our global human rights strategy Following this we articulated our
approach in a document ldquoOur Approach to Human Rightsrdquo which explicitly communicates how our business
activities promote human rights This reflects both our heritage and our conviction that respect for human
rights is crucial to business success Our Approach to Human Rights reinforces the key areas where our
business activities impact on human rights and how we address this through our CSR and wider business
agenda
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
From Wikipedia
Jump to navigation search
Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Our Marketing Code
What is the Cadbury global marketing code
We are proud of our brands They provide fun and enjoyment as treats or refreshment and are valued
for their functional benefits They can be enjoyed as part of a balanced diet and lifestyle We provide
choice by offering variety and through innovation We encourage responsible consumption as this is
central to consumers continuing to enjoy our brands
Our consumers are at the heart of our business We are committed to listening to them and acting
responsibly in their interests and have done this successfully for generations
This Marketing Code of Practice ensures we continue to meet our responsibilities to our consumers1 Accurate and truthful
2 Attentive to local sensitivities
3 Supporting sensible consumption and balanced life style
4 Protecting children
View or download our full Marketing Code of Practice (PDF 74k)
Application and governance1 We will apply these guidelines to all forms of media including print broadcast and cable television radio
video telephone point-of-sale online advertising other internet activities and packaging
2 Prior to release all advertisements and promotions to children will be reviewed at an early stage for the appropriateness of the activity and then checked against this code before being signed off by Legal representatives
3 In addition there will be a periodic review of business unit activity by regional and global management to ensure that interpretation of the code is aligned locally regionally and globally
4 This code is reviewed annually by the groups President of Commercial Strategy and put before the companys Food Strategy Group for policy approval
Sourcesreferences
This code has been developed with reference to the following
General references
International Chamber of Commerce Framework for Responsible Food and Beverage Communications
International Chamber of Commerce httpwwwaanacomauregulatory_overviewhtml (accessed July
2004)
Principles of Food and Beverage Product Advertising Confederation des industries agro-alimentaires de IUE -
the confederation of EU food and drink industry (CIAA)
httpwwwgwadefileadmindownloadKommbranche
CIAA_Principlespdf (accessed July 2004)
World Federation of Advertisers (WFA) wwwwfanetorg
European Advertising Standards Alliance (EASA) httpwwweasa-allianceorgabout_easaenabouthtml
Marketing to Children
Self-Regulatory Guidelines for Childrens Advertising Childrens Advertising Review Unit (CARU)
httpwwwcaruorgguidelinesindexaspx (accessed July 2004)
Code for Advertising to Children Australian Association of National Advertisers (AANA) recommendations
httpwwwaanacomaucodeshtml (accessed July 2004)
Report of the APA Task Force on Advertising and Children American Psychological Association (APA)
February 20th 2004 httpwwwapaorgreleaseschildrenadspdf (accessed July 2004)
Employment Practices
Our success relies on our people Cadbury has a strong heritage in the way it respects its people and its
social responsibilities
Our people practices are guided by our key values which are to be open and honest to act with complete
integrity and to provide quality in products and services
Learn more about how Cadbury promotes diversity amp opportunity reflecting the diversity of the societies in which we operate
encourages consultation amp dialogue with employees
provides leading-edge rewards amp recognition for leading-edge performance
encourages and invests in employee development and training
provides a healthy and safe working environment
Our Business Principles are also an important part of our management processes and inform how we
work all over the world Through them we can protect and perpetuate the ethical standards that make
Cadbury a
great company - to work for and to work with Communication of these principles to all managers enables us
to work together to ensure our company maintains its reputation for ethical standards
Cadbury Cocoa Partnership
Cadbury the worlds leading confectionery company has announced the establishment of the Cadbury
Cocoa Partnership to secure the economic social and environmental sustainability of around a million cocoa
farmers and their communities in Ghana India Indonesia and the Caribbean through Long-term commitment to improving farmer livelihoods and farming communities
Direct farmer involvement alongside NGO partners and governments
Ghanaian President and United Nations pledge their support
This ground-breaking initiative which will be carried out in partnership with the United Nations Development
Programme (UNDP) and other partners marks 100 years since the Cadbury brothers first began trading in
Ghana and aims to holistically support the development of sustainable cocoa growing communities
Research by the Institute of Development Studies Sussex and the University of Ghana Legon into
Sustainable Cocoa Production in Ghana funded by Cadbury showed that the average production for a
cocoa farmer has dropped to only 40 of potential yield and that cocoa farming has become less attractive
to the next potential generation of farmers The Cadbury Cocoa Partnership programme aims to address
some of the root causes of these issues - improving farmer productivity and helping to attract the next
generation into cocoa farming
The Partnership will focus on1 Improving cocoa farmer incomes by helping farmers increase their yields and produce top quality beans
2 Introducing new sources of rural income through microfinance and business support to kick start new rural businesses and introduce additional income streams such as growing other crops
3 Investing in community led development to improve life in cocoa communities eg supporting education through schools and libraries supporting the environment through biodiversity projects and building wells for clean safe water
4 Working in partnership developing a pioneering model which will be led from the grass roots Farmers governments NGOs and international agencies will work together to decide how the funding is spent and work with local organisations to turn plans into action
Find out what our Cadbury Cocoa Partnership partners have to say in this video with our partners or by
reading the associated transcript here
Announcing the partnership Matt Shattock President of Cadbury Britain Ireland the Middle East
and Africa said Sustainable cocoa production is vital to Cadburys commercial success not simply the
supply of our most important ingredient but guaranteeing a reliable long term source of the right quality
cocoa produced to the high standards our business customers and our consumers expect
The majority of the Partnership funds (70) will be invested into small farms and farming villages in Ghana
which provide the cocoa beans for Cadburys UK chocolate giving it its unique and much loved taste Brands
using Ghanaian beans include Cadbury Dairy Milk Wispa Flake Creme Egg and Buttons
James Boateng Managing Director of Cadbury Ghana added In the centenary of our relationship with
the cocoa farming industry in Ghana we are incredibly proud to launch the Cadbury Cocoa Partnership in
Accra today which we hope will have a lasting impact on the lives of cocoa farmers
I grew up on a cocoa farm and owe my education to the prosperity which cocoa brought to my family and
look forward to contributing to the future of cocoa farming In Ghana there is a phrase Kookoo cobatanpa
which means Cocoa is a good parent it looks after you We hope with this initiative Cadbury and our
partners can be a good parent to cocoa
Welcoming the initiative UNDPs Resident Representative in Ghana Daouda Toureacute said UNDP strives
to promote inclusive sustainable development where everyone benefits as a country gets to grips with
fighting poverty Ghana has been producing cocoa for decades now and the industry has certainly gone
some way to improving the lives of the Ghanaian people but with this new public-private partnership
approach developed with Cadbury where both the small producer and the consumer benefit we hope to
show just how effectively sustainable cocoa production can be in generating improved opportunities for local
farmers conserving the environment and building a brighter future for younger generations
Cadbury is initially investing pound1m in 2008 as a seed fund to establish the Cadbury Cocoa Partnership with
annual funding levels rising to a steady rate of pound5m over the next several years
We also note with satisfaction the fact that Ghana signed an Economic Partnership Agreement with the EU
which allows us to continue importing cocoa butter powder and liquor at 0 tariffs This in turn benefits the
Ghanaian economy and further strengthens our partnership and investment in the country
To get a snap shot of some of the work we are doing in Ghana please click through the case
studies below
Earthshare partnership
Ghana Wells programme
Teacher training support with Digital Links International
Free newspaper for cocoa farmers
Enterprise Loans to aid skills development in Cocoa communities
Library programme
Overview
A Socially Responsible Company
Responsible business is underpinned by strong values and has a clear and compelling vision of where it is
going Over many years Cadbury has earned success on the strength of its distinctive values and clear
vision This update sets out the steps we are taking to ensure that in our present and future business as in
the past we continue to live our values
Ultimately our goals and those of our shareowners are similar a responsible and well-run company that
delivers consistently superior profits over the long-term Performance driven values led Good business and
strong values go hand in hand For our long term future and that of all our stakeholders it is in our mutual
interests that we create a world in which our business will grow and thrive
Browse this site to find out more about our CSR programme corporate governance employment practices
ethical trading food and consumer trends environment health and safety and community Discover the
different ways in which we are living up to the demands of good corporate citizenship
You can also download our latest Sustainability report
Cadbury Schweppes was included in the Companies that Count 2006 BiTCs Corporate Responsibility Index
Top 100 in association with The Sunday Times which was the fourth year that we were included in the Top
100 ranking 36th Our performance improved every year and in 2006 we scored 925 up from 89 and
87 in the previous two years
Cadbury has participated in Business in the Community (BiTC) Corporate Responsibility Index since the
Indexs inception in 2002 We use this index to help us measure and manage our global performance in
corporate and social responsibility (CSR) and to benchmark ourselves against other companies
Corporate Governance
In managing the affairs of the Group the Board of Cadbury plc is committed to achieving high standards of
business integrity ethics and professionalism across all its activities As a fundamental part of this
commitment the Board supports the highest standards of corporate governance To help achieve this the
Board has approved a set of Corporate Governance Principles These principles set out our approach to this
area and also provide a summary of our current position
The Group has a Financial Code of Ethics that applies to the Chief Executive Officer and senior financial
officers in the Group and all members of the Board sign the Cadbury Business Principles entitled Our
business principles
Further details of our corporate governance are reported in our Report amp Accounts
Non-executive directors
The Cadbury Board currently consists of seven Non-Executive Directors and three Executive Directors
Collectively they bring a valuable range of international experience and expertise as they all currently
occupy or have occupied senior positions within industry and public life All the Non-Executive Directors are
independent of management and have no relationships which could materially interfere with the exercise of
their independent judgement Subject to satisfactory performance a Non-Executive Director is appointed for an initial term of three years
After the initial three year term they may serve two additional three year terms with a maximum of nine years service on the Board as a general rule
A Non-Executive Director is expected to attend every Board Meeting including those held overseas
A Non-Executive Director is expected to make regular visits to the Groups operations to better understand its workings
Each Non-Executive Director is expected to devote such time as is necessary for the proper performance of their duties However an average time commitment of one to one and one-half days per month is suggested as a guideline
The base fee for a Non-Executive Director is pound55000 per year paid quarterly in arrears however this is increased if they are appointed chairman to a Board Committee
The Company has established a programme which enables a Non-Executive Director to allocate a portion of their fees to the purchase of Cadbury shares Currently all Non-Executive Directors use this facility
A copy of our most recent non-executive director appointment letter can be downloaded as a PDF file The
letter will be updated when any future Cadbury plc appointments are made
Terms of reference
The Board and its committees have adopted terms of reference which define their roles and responsibilities
These together with the Memorandum and Articles of Association for Cadbury plc can also be viewed here
Matters reserved for the Board
Remuneration Committee Terms of Reference
Nomination Committee Terms of Reference
CSR Committee Terms of Reference
Chief Executive Committee Terms of Reference
Memorandum and Articles of Association
Audit Committee Terms of Reference
Community
Growing community value
Growing value in the community is part of our heritage and integral to achieving our core purpose of working
together to create brands people love
We have always recognised that we do not operate in isolation but have responsibilities to our employees
and the society in which we operate Cadbury was well known for its pioneering work in the 19th century
providing housing education welfare and recreation facilities for the local community
As we have grown as a business the expectations of our consumers customers employees and wider
society have also increased Today we recognise that prosperous educated and socially inclusive
communities are central to our success
Why we invest in the community
Healthy highstreets are founded on healthy backstreets It is in the interests of business to have
prosperous communities educated employees and healthy happy consumers
Building and protecting our reputation Our good reputation has always been important to us - because
it is important to our people our brands our customers our regulators and increasingly our investors
Strengthening our company culture Community investment keeps us in touch with consumers makes
us more adaptable and responsive gives us new perspectives and skills and helps us work in more creative
ways
We invite you to find out about our commitments to growing community value throughout our business the
processes we use and see a few of the many people who have benefited from this commitment
Overview Consumer Cadbury Cocoa Partnership Corporate Governance Human Rights Employment Practices Ethical Trading Community
Purple Goes Green
Home Our Responsibilities
Human Rights
Human Rights
In 2007 we initiated a review of our global human rights strategy Following this we articulated our
approach in a document ldquoOur Approach to Human Rightsrdquo which explicitly communicates how our business
activities promote human rights This reflects both our heritage and our conviction that respect for human
rights is crucial to business success Our Approach to Human Rights reinforces the key areas where our
business activities impact on human rights and how we address this through our CSR and wider business
agenda
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
From Wikipedia
Jump to navigation search
Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
httpwwwgwadefileadmindownloadKommbranche
CIAA_Principlespdf (accessed July 2004)
World Federation of Advertisers (WFA) wwwwfanetorg
European Advertising Standards Alliance (EASA) httpwwweasa-allianceorgabout_easaenabouthtml
Marketing to Children
Self-Regulatory Guidelines for Childrens Advertising Childrens Advertising Review Unit (CARU)
httpwwwcaruorgguidelinesindexaspx (accessed July 2004)
Code for Advertising to Children Australian Association of National Advertisers (AANA) recommendations
httpwwwaanacomaucodeshtml (accessed July 2004)
Report of the APA Task Force on Advertising and Children American Psychological Association (APA)
February 20th 2004 httpwwwapaorgreleaseschildrenadspdf (accessed July 2004)
Employment Practices
Our success relies on our people Cadbury has a strong heritage in the way it respects its people and its
social responsibilities
Our people practices are guided by our key values which are to be open and honest to act with complete
integrity and to provide quality in products and services
Learn more about how Cadbury promotes diversity amp opportunity reflecting the diversity of the societies in which we operate
encourages consultation amp dialogue with employees
provides leading-edge rewards amp recognition for leading-edge performance
encourages and invests in employee development and training
provides a healthy and safe working environment
Our Business Principles are also an important part of our management processes and inform how we
work all over the world Through them we can protect and perpetuate the ethical standards that make
Cadbury a
great company - to work for and to work with Communication of these principles to all managers enables us
to work together to ensure our company maintains its reputation for ethical standards
Cadbury Cocoa Partnership
Cadbury the worlds leading confectionery company has announced the establishment of the Cadbury
Cocoa Partnership to secure the economic social and environmental sustainability of around a million cocoa
farmers and their communities in Ghana India Indonesia and the Caribbean through Long-term commitment to improving farmer livelihoods and farming communities
Direct farmer involvement alongside NGO partners and governments
Ghanaian President and United Nations pledge their support
This ground-breaking initiative which will be carried out in partnership with the United Nations Development
Programme (UNDP) and other partners marks 100 years since the Cadbury brothers first began trading in
Ghana and aims to holistically support the development of sustainable cocoa growing communities
Research by the Institute of Development Studies Sussex and the University of Ghana Legon into
Sustainable Cocoa Production in Ghana funded by Cadbury showed that the average production for a
cocoa farmer has dropped to only 40 of potential yield and that cocoa farming has become less attractive
to the next potential generation of farmers The Cadbury Cocoa Partnership programme aims to address
some of the root causes of these issues - improving farmer productivity and helping to attract the next
generation into cocoa farming
The Partnership will focus on1 Improving cocoa farmer incomes by helping farmers increase their yields and produce top quality beans
2 Introducing new sources of rural income through microfinance and business support to kick start new rural businesses and introduce additional income streams such as growing other crops
3 Investing in community led development to improve life in cocoa communities eg supporting education through schools and libraries supporting the environment through biodiversity projects and building wells for clean safe water
4 Working in partnership developing a pioneering model which will be led from the grass roots Farmers governments NGOs and international agencies will work together to decide how the funding is spent and work with local organisations to turn plans into action
Find out what our Cadbury Cocoa Partnership partners have to say in this video with our partners or by
reading the associated transcript here
Announcing the partnership Matt Shattock President of Cadbury Britain Ireland the Middle East
and Africa said Sustainable cocoa production is vital to Cadburys commercial success not simply the
supply of our most important ingredient but guaranteeing a reliable long term source of the right quality
cocoa produced to the high standards our business customers and our consumers expect
The majority of the Partnership funds (70) will be invested into small farms and farming villages in Ghana
which provide the cocoa beans for Cadburys UK chocolate giving it its unique and much loved taste Brands
using Ghanaian beans include Cadbury Dairy Milk Wispa Flake Creme Egg and Buttons
James Boateng Managing Director of Cadbury Ghana added In the centenary of our relationship with
the cocoa farming industry in Ghana we are incredibly proud to launch the Cadbury Cocoa Partnership in
Accra today which we hope will have a lasting impact on the lives of cocoa farmers
I grew up on a cocoa farm and owe my education to the prosperity which cocoa brought to my family and
look forward to contributing to the future of cocoa farming In Ghana there is a phrase Kookoo cobatanpa
which means Cocoa is a good parent it looks after you We hope with this initiative Cadbury and our
partners can be a good parent to cocoa
Welcoming the initiative UNDPs Resident Representative in Ghana Daouda Toureacute said UNDP strives
to promote inclusive sustainable development where everyone benefits as a country gets to grips with
fighting poverty Ghana has been producing cocoa for decades now and the industry has certainly gone
some way to improving the lives of the Ghanaian people but with this new public-private partnership
approach developed with Cadbury where both the small producer and the consumer benefit we hope to
show just how effectively sustainable cocoa production can be in generating improved opportunities for local
farmers conserving the environment and building a brighter future for younger generations
Cadbury is initially investing pound1m in 2008 as a seed fund to establish the Cadbury Cocoa Partnership with
annual funding levels rising to a steady rate of pound5m over the next several years
We also note with satisfaction the fact that Ghana signed an Economic Partnership Agreement with the EU
which allows us to continue importing cocoa butter powder and liquor at 0 tariffs This in turn benefits the
Ghanaian economy and further strengthens our partnership and investment in the country
To get a snap shot of some of the work we are doing in Ghana please click through the case
studies below
Earthshare partnership
Ghana Wells programme
Teacher training support with Digital Links International
Free newspaper for cocoa farmers
Enterprise Loans to aid skills development in Cocoa communities
Library programme
Overview
A Socially Responsible Company
Responsible business is underpinned by strong values and has a clear and compelling vision of where it is
going Over many years Cadbury has earned success on the strength of its distinctive values and clear
vision This update sets out the steps we are taking to ensure that in our present and future business as in
the past we continue to live our values
Ultimately our goals and those of our shareowners are similar a responsible and well-run company that
delivers consistently superior profits over the long-term Performance driven values led Good business and
strong values go hand in hand For our long term future and that of all our stakeholders it is in our mutual
interests that we create a world in which our business will grow and thrive
Browse this site to find out more about our CSR programme corporate governance employment practices
ethical trading food and consumer trends environment health and safety and community Discover the
different ways in which we are living up to the demands of good corporate citizenship
You can also download our latest Sustainability report
Cadbury Schweppes was included in the Companies that Count 2006 BiTCs Corporate Responsibility Index
Top 100 in association with The Sunday Times which was the fourth year that we were included in the Top
100 ranking 36th Our performance improved every year and in 2006 we scored 925 up from 89 and
87 in the previous two years
Cadbury has participated in Business in the Community (BiTC) Corporate Responsibility Index since the
Indexs inception in 2002 We use this index to help us measure and manage our global performance in
corporate and social responsibility (CSR) and to benchmark ourselves against other companies
Corporate Governance
In managing the affairs of the Group the Board of Cadbury plc is committed to achieving high standards of
business integrity ethics and professionalism across all its activities As a fundamental part of this
commitment the Board supports the highest standards of corporate governance To help achieve this the
Board has approved a set of Corporate Governance Principles These principles set out our approach to this
area and also provide a summary of our current position
The Group has a Financial Code of Ethics that applies to the Chief Executive Officer and senior financial
officers in the Group and all members of the Board sign the Cadbury Business Principles entitled Our
business principles
Further details of our corporate governance are reported in our Report amp Accounts
Non-executive directors
The Cadbury Board currently consists of seven Non-Executive Directors and three Executive Directors
Collectively they bring a valuable range of international experience and expertise as they all currently
occupy or have occupied senior positions within industry and public life All the Non-Executive Directors are
independent of management and have no relationships which could materially interfere with the exercise of
their independent judgement Subject to satisfactory performance a Non-Executive Director is appointed for an initial term of three years
After the initial three year term they may serve two additional three year terms with a maximum of nine years service on the Board as a general rule
A Non-Executive Director is expected to attend every Board Meeting including those held overseas
A Non-Executive Director is expected to make regular visits to the Groups operations to better understand its workings
Each Non-Executive Director is expected to devote such time as is necessary for the proper performance of their duties However an average time commitment of one to one and one-half days per month is suggested as a guideline
The base fee for a Non-Executive Director is pound55000 per year paid quarterly in arrears however this is increased if they are appointed chairman to a Board Committee
The Company has established a programme which enables a Non-Executive Director to allocate a portion of their fees to the purchase of Cadbury shares Currently all Non-Executive Directors use this facility
A copy of our most recent non-executive director appointment letter can be downloaded as a PDF file The
letter will be updated when any future Cadbury plc appointments are made
Terms of reference
The Board and its committees have adopted terms of reference which define their roles and responsibilities
These together with the Memorandum and Articles of Association for Cadbury plc can also be viewed here
Matters reserved for the Board
Remuneration Committee Terms of Reference
Nomination Committee Terms of Reference
CSR Committee Terms of Reference
Chief Executive Committee Terms of Reference
Memorandum and Articles of Association
Audit Committee Terms of Reference
Community
Growing community value
Growing value in the community is part of our heritage and integral to achieving our core purpose of working
together to create brands people love
We have always recognised that we do not operate in isolation but have responsibilities to our employees
and the society in which we operate Cadbury was well known for its pioneering work in the 19th century
providing housing education welfare and recreation facilities for the local community
As we have grown as a business the expectations of our consumers customers employees and wider
society have also increased Today we recognise that prosperous educated and socially inclusive
communities are central to our success
Why we invest in the community
Healthy highstreets are founded on healthy backstreets It is in the interests of business to have
prosperous communities educated employees and healthy happy consumers
Building and protecting our reputation Our good reputation has always been important to us - because
it is important to our people our brands our customers our regulators and increasingly our investors
Strengthening our company culture Community investment keeps us in touch with consumers makes
us more adaptable and responsive gives us new perspectives and skills and helps us work in more creative
ways
We invite you to find out about our commitments to growing community value throughout our business the
processes we use and see a few of the many people who have benefited from this commitment
Overview Consumer Cadbury Cocoa Partnership Corporate Governance Human Rights Employment Practices Ethical Trading Community
Purple Goes Green
Home Our Responsibilities
Human Rights
Human Rights
In 2007 we initiated a review of our global human rights strategy Following this we articulated our
approach in a document ldquoOur Approach to Human Rightsrdquo which explicitly communicates how our business
activities promote human rights This reflects both our heritage and our conviction that respect for human
rights is crucial to business success Our Approach to Human Rights reinforces the key areas where our
business activities impact on human rights and how we address this through our CSR and wider business
agenda
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
From Wikipedia
Jump to navigation search
Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Cadbury the worlds leading confectionery company has announced the establishment of the Cadbury
Cocoa Partnership to secure the economic social and environmental sustainability of around a million cocoa
farmers and their communities in Ghana India Indonesia and the Caribbean through Long-term commitment to improving farmer livelihoods and farming communities
Direct farmer involvement alongside NGO partners and governments
Ghanaian President and United Nations pledge their support
This ground-breaking initiative which will be carried out in partnership with the United Nations Development
Programme (UNDP) and other partners marks 100 years since the Cadbury brothers first began trading in
Ghana and aims to holistically support the development of sustainable cocoa growing communities
Research by the Institute of Development Studies Sussex and the University of Ghana Legon into
Sustainable Cocoa Production in Ghana funded by Cadbury showed that the average production for a
cocoa farmer has dropped to only 40 of potential yield and that cocoa farming has become less attractive
to the next potential generation of farmers The Cadbury Cocoa Partnership programme aims to address
some of the root causes of these issues - improving farmer productivity and helping to attract the next
generation into cocoa farming
The Partnership will focus on1 Improving cocoa farmer incomes by helping farmers increase their yields and produce top quality beans
2 Introducing new sources of rural income through microfinance and business support to kick start new rural businesses and introduce additional income streams such as growing other crops
3 Investing in community led development to improve life in cocoa communities eg supporting education through schools and libraries supporting the environment through biodiversity projects and building wells for clean safe water
4 Working in partnership developing a pioneering model which will be led from the grass roots Farmers governments NGOs and international agencies will work together to decide how the funding is spent and work with local organisations to turn plans into action
Find out what our Cadbury Cocoa Partnership partners have to say in this video with our partners or by
reading the associated transcript here
Announcing the partnership Matt Shattock President of Cadbury Britain Ireland the Middle East
and Africa said Sustainable cocoa production is vital to Cadburys commercial success not simply the
supply of our most important ingredient but guaranteeing a reliable long term source of the right quality
cocoa produced to the high standards our business customers and our consumers expect
The majority of the Partnership funds (70) will be invested into small farms and farming villages in Ghana
which provide the cocoa beans for Cadburys UK chocolate giving it its unique and much loved taste Brands
using Ghanaian beans include Cadbury Dairy Milk Wispa Flake Creme Egg and Buttons
James Boateng Managing Director of Cadbury Ghana added In the centenary of our relationship with
the cocoa farming industry in Ghana we are incredibly proud to launch the Cadbury Cocoa Partnership in
Accra today which we hope will have a lasting impact on the lives of cocoa farmers
I grew up on a cocoa farm and owe my education to the prosperity which cocoa brought to my family and
look forward to contributing to the future of cocoa farming In Ghana there is a phrase Kookoo cobatanpa
which means Cocoa is a good parent it looks after you We hope with this initiative Cadbury and our
partners can be a good parent to cocoa
Welcoming the initiative UNDPs Resident Representative in Ghana Daouda Toureacute said UNDP strives
to promote inclusive sustainable development where everyone benefits as a country gets to grips with
fighting poverty Ghana has been producing cocoa for decades now and the industry has certainly gone
some way to improving the lives of the Ghanaian people but with this new public-private partnership
approach developed with Cadbury where both the small producer and the consumer benefit we hope to
show just how effectively sustainable cocoa production can be in generating improved opportunities for local
farmers conserving the environment and building a brighter future for younger generations
Cadbury is initially investing pound1m in 2008 as a seed fund to establish the Cadbury Cocoa Partnership with
annual funding levels rising to a steady rate of pound5m over the next several years
We also note with satisfaction the fact that Ghana signed an Economic Partnership Agreement with the EU
which allows us to continue importing cocoa butter powder and liquor at 0 tariffs This in turn benefits the
Ghanaian economy and further strengthens our partnership and investment in the country
To get a snap shot of some of the work we are doing in Ghana please click through the case
studies below
Earthshare partnership
Ghana Wells programme
Teacher training support with Digital Links International
Free newspaper for cocoa farmers
Enterprise Loans to aid skills development in Cocoa communities
Library programme
Overview
A Socially Responsible Company
Responsible business is underpinned by strong values and has a clear and compelling vision of where it is
going Over many years Cadbury has earned success on the strength of its distinctive values and clear
vision This update sets out the steps we are taking to ensure that in our present and future business as in
the past we continue to live our values
Ultimately our goals and those of our shareowners are similar a responsible and well-run company that
delivers consistently superior profits over the long-term Performance driven values led Good business and
strong values go hand in hand For our long term future and that of all our stakeholders it is in our mutual
interests that we create a world in which our business will grow and thrive
Browse this site to find out more about our CSR programme corporate governance employment practices
ethical trading food and consumer trends environment health and safety and community Discover the
different ways in which we are living up to the demands of good corporate citizenship
You can also download our latest Sustainability report
Cadbury Schweppes was included in the Companies that Count 2006 BiTCs Corporate Responsibility Index
Top 100 in association with The Sunday Times which was the fourth year that we were included in the Top
100 ranking 36th Our performance improved every year and in 2006 we scored 925 up from 89 and
87 in the previous two years
Cadbury has participated in Business in the Community (BiTC) Corporate Responsibility Index since the
Indexs inception in 2002 We use this index to help us measure and manage our global performance in
corporate and social responsibility (CSR) and to benchmark ourselves against other companies
Corporate Governance
In managing the affairs of the Group the Board of Cadbury plc is committed to achieving high standards of
business integrity ethics and professionalism across all its activities As a fundamental part of this
commitment the Board supports the highest standards of corporate governance To help achieve this the
Board has approved a set of Corporate Governance Principles These principles set out our approach to this
area and also provide a summary of our current position
The Group has a Financial Code of Ethics that applies to the Chief Executive Officer and senior financial
officers in the Group and all members of the Board sign the Cadbury Business Principles entitled Our
business principles
Further details of our corporate governance are reported in our Report amp Accounts
Non-executive directors
The Cadbury Board currently consists of seven Non-Executive Directors and three Executive Directors
Collectively they bring a valuable range of international experience and expertise as they all currently
occupy or have occupied senior positions within industry and public life All the Non-Executive Directors are
independent of management and have no relationships which could materially interfere with the exercise of
their independent judgement Subject to satisfactory performance a Non-Executive Director is appointed for an initial term of three years
After the initial three year term they may serve two additional three year terms with a maximum of nine years service on the Board as a general rule
A Non-Executive Director is expected to attend every Board Meeting including those held overseas
A Non-Executive Director is expected to make regular visits to the Groups operations to better understand its workings
Each Non-Executive Director is expected to devote such time as is necessary for the proper performance of their duties However an average time commitment of one to one and one-half days per month is suggested as a guideline
The base fee for a Non-Executive Director is pound55000 per year paid quarterly in arrears however this is increased if they are appointed chairman to a Board Committee
The Company has established a programme which enables a Non-Executive Director to allocate a portion of their fees to the purchase of Cadbury shares Currently all Non-Executive Directors use this facility
A copy of our most recent non-executive director appointment letter can be downloaded as a PDF file The
letter will be updated when any future Cadbury plc appointments are made
Terms of reference
The Board and its committees have adopted terms of reference which define their roles and responsibilities
These together with the Memorandum and Articles of Association for Cadbury plc can also be viewed here
Matters reserved for the Board
Remuneration Committee Terms of Reference
Nomination Committee Terms of Reference
CSR Committee Terms of Reference
Chief Executive Committee Terms of Reference
Memorandum and Articles of Association
Audit Committee Terms of Reference
Community
Growing community value
Growing value in the community is part of our heritage and integral to achieving our core purpose of working
together to create brands people love
We have always recognised that we do not operate in isolation but have responsibilities to our employees
and the society in which we operate Cadbury was well known for its pioneering work in the 19th century
providing housing education welfare and recreation facilities for the local community
As we have grown as a business the expectations of our consumers customers employees and wider
society have also increased Today we recognise that prosperous educated and socially inclusive
communities are central to our success
Why we invest in the community
Healthy highstreets are founded on healthy backstreets It is in the interests of business to have
prosperous communities educated employees and healthy happy consumers
Building and protecting our reputation Our good reputation has always been important to us - because
it is important to our people our brands our customers our regulators and increasingly our investors
Strengthening our company culture Community investment keeps us in touch with consumers makes
us more adaptable and responsive gives us new perspectives and skills and helps us work in more creative
ways
We invite you to find out about our commitments to growing community value throughout our business the
processes we use and see a few of the many people who have benefited from this commitment
Overview Consumer Cadbury Cocoa Partnership Corporate Governance Human Rights Employment Practices Ethical Trading Community
Purple Goes Green
Home Our Responsibilities
Human Rights
Human Rights
In 2007 we initiated a review of our global human rights strategy Following this we articulated our
approach in a document ldquoOur Approach to Human Rightsrdquo which explicitly communicates how our business
activities promote human rights This reflects both our heritage and our conviction that respect for human
rights is crucial to business success Our Approach to Human Rights reinforces the key areas where our
business activities impact on human rights and how we address this through our CSR and wider business
agenda
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
From Wikipedia
Jump to navigation search
Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
I grew up on a cocoa farm and owe my education to the prosperity which cocoa brought to my family and
look forward to contributing to the future of cocoa farming In Ghana there is a phrase Kookoo cobatanpa
which means Cocoa is a good parent it looks after you We hope with this initiative Cadbury and our
partners can be a good parent to cocoa
Welcoming the initiative UNDPs Resident Representative in Ghana Daouda Toureacute said UNDP strives
to promote inclusive sustainable development where everyone benefits as a country gets to grips with
fighting poverty Ghana has been producing cocoa for decades now and the industry has certainly gone
some way to improving the lives of the Ghanaian people but with this new public-private partnership
approach developed with Cadbury where both the small producer and the consumer benefit we hope to
show just how effectively sustainable cocoa production can be in generating improved opportunities for local
farmers conserving the environment and building a brighter future for younger generations
Cadbury is initially investing pound1m in 2008 as a seed fund to establish the Cadbury Cocoa Partnership with
annual funding levels rising to a steady rate of pound5m over the next several years
We also note with satisfaction the fact that Ghana signed an Economic Partnership Agreement with the EU
which allows us to continue importing cocoa butter powder and liquor at 0 tariffs This in turn benefits the
Ghanaian economy and further strengthens our partnership and investment in the country
To get a snap shot of some of the work we are doing in Ghana please click through the case
studies below
Earthshare partnership
Ghana Wells programme
Teacher training support with Digital Links International
Free newspaper for cocoa farmers
Enterprise Loans to aid skills development in Cocoa communities
Library programme
Overview
A Socially Responsible Company
Responsible business is underpinned by strong values and has a clear and compelling vision of where it is
going Over many years Cadbury has earned success on the strength of its distinctive values and clear
vision This update sets out the steps we are taking to ensure that in our present and future business as in
the past we continue to live our values
Ultimately our goals and those of our shareowners are similar a responsible and well-run company that
delivers consistently superior profits over the long-term Performance driven values led Good business and
strong values go hand in hand For our long term future and that of all our stakeholders it is in our mutual
interests that we create a world in which our business will grow and thrive
Browse this site to find out more about our CSR programme corporate governance employment practices
ethical trading food and consumer trends environment health and safety and community Discover the
different ways in which we are living up to the demands of good corporate citizenship
You can also download our latest Sustainability report
Cadbury Schweppes was included in the Companies that Count 2006 BiTCs Corporate Responsibility Index
Top 100 in association with The Sunday Times which was the fourth year that we were included in the Top
100 ranking 36th Our performance improved every year and in 2006 we scored 925 up from 89 and
87 in the previous two years
Cadbury has participated in Business in the Community (BiTC) Corporate Responsibility Index since the
Indexs inception in 2002 We use this index to help us measure and manage our global performance in
corporate and social responsibility (CSR) and to benchmark ourselves against other companies
Corporate Governance
In managing the affairs of the Group the Board of Cadbury plc is committed to achieving high standards of
business integrity ethics and professionalism across all its activities As a fundamental part of this
commitment the Board supports the highest standards of corporate governance To help achieve this the
Board has approved a set of Corporate Governance Principles These principles set out our approach to this
area and also provide a summary of our current position
The Group has a Financial Code of Ethics that applies to the Chief Executive Officer and senior financial
officers in the Group and all members of the Board sign the Cadbury Business Principles entitled Our
business principles
Further details of our corporate governance are reported in our Report amp Accounts
Non-executive directors
The Cadbury Board currently consists of seven Non-Executive Directors and three Executive Directors
Collectively they bring a valuable range of international experience and expertise as they all currently
occupy or have occupied senior positions within industry and public life All the Non-Executive Directors are
independent of management and have no relationships which could materially interfere with the exercise of
their independent judgement Subject to satisfactory performance a Non-Executive Director is appointed for an initial term of three years
After the initial three year term they may serve two additional three year terms with a maximum of nine years service on the Board as a general rule
A Non-Executive Director is expected to attend every Board Meeting including those held overseas
A Non-Executive Director is expected to make regular visits to the Groups operations to better understand its workings
Each Non-Executive Director is expected to devote such time as is necessary for the proper performance of their duties However an average time commitment of one to one and one-half days per month is suggested as a guideline
The base fee for a Non-Executive Director is pound55000 per year paid quarterly in arrears however this is increased if they are appointed chairman to a Board Committee
The Company has established a programme which enables a Non-Executive Director to allocate a portion of their fees to the purchase of Cadbury shares Currently all Non-Executive Directors use this facility
A copy of our most recent non-executive director appointment letter can be downloaded as a PDF file The
letter will be updated when any future Cadbury plc appointments are made
Terms of reference
The Board and its committees have adopted terms of reference which define their roles and responsibilities
These together with the Memorandum and Articles of Association for Cadbury plc can also be viewed here
Matters reserved for the Board
Remuneration Committee Terms of Reference
Nomination Committee Terms of Reference
CSR Committee Terms of Reference
Chief Executive Committee Terms of Reference
Memorandum and Articles of Association
Audit Committee Terms of Reference
Community
Growing community value
Growing value in the community is part of our heritage and integral to achieving our core purpose of working
together to create brands people love
We have always recognised that we do not operate in isolation but have responsibilities to our employees
and the society in which we operate Cadbury was well known for its pioneering work in the 19th century
providing housing education welfare and recreation facilities for the local community
As we have grown as a business the expectations of our consumers customers employees and wider
society have also increased Today we recognise that prosperous educated and socially inclusive
communities are central to our success
Why we invest in the community
Healthy highstreets are founded on healthy backstreets It is in the interests of business to have
prosperous communities educated employees and healthy happy consumers
Building and protecting our reputation Our good reputation has always been important to us - because
it is important to our people our brands our customers our regulators and increasingly our investors
Strengthening our company culture Community investment keeps us in touch with consumers makes
us more adaptable and responsive gives us new perspectives and skills and helps us work in more creative
ways
We invite you to find out about our commitments to growing community value throughout our business the
processes we use and see a few of the many people who have benefited from this commitment
Overview Consumer Cadbury Cocoa Partnership Corporate Governance Human Rights Employment Practices Ethical Trading Community
Purple Goes Green
Home Our Responsibilities
Human Rights
Human Rights
In 2007 we initiated a review of our global human rights strategy Following this we articulated our
approach in a document ldquoOur Approach to Human Rightsrdquo which explicitly communicates how our business
activities promote human rights This reflects both our heritage and our conviction that respect for human
rights is crucial to business success Our Approach to Human Rights reinforces the key areas where our
business activities impact on human rights and how we address this through our CSR and wider business
agenda
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
From Wikipedia
Jump to navigation search
Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
strong values go hand in hand For our long term future and that of all our stakeholders it is in our mutual
interests that we create a world in which our business will grow and thrive
Browse this site to find out more about our CSR programme corporate governance employment practices
ethical trading food and consumer trends environment health and safety and community Discover the
different ways in which we are living up to the demands of good corporate citizenship
You can also download our latest Sustainability report
Cadbury Schweppes was included in the Companies that Count 2006 BiTCs Corporate Responsibility Index
Top 100 in association with The Sunday Times which was the fourth year that we were included in the Top
100 ranking 36th Our performance improved every year and in 2006 we scored 925 up from 89 and
87 in the previous two years
Cadbury has participated in Business in the Community (BiTC) Corporate Responsibility Index since the
Indexs inception in 2002 We use this index to help us measure and manage our global performance in
corporate and social responsibility (CSR) and to benchmark ourselves against other companies
Corporate Governance
In managing the affairs of the Group the Board of Cadbury plc is committed to achieving high standards of
business integrity ethics and professionalism across all its activities As a fundamental part of this
commitment the Board supports the highest standards of corporate governance To help achieve this the
Board has approved a set of Corporate Governance Principles These principles set out our approach to this
area and also provide a summary of our current position
The Group has a Financial Code of Ethics that applies to the Chief Executive Officer and senior financial
officers in the Group and all members of the Board sign the Cadbury Business Principles entitled Our
business principles
Further details of our corporate governance are reported in our Report amp Accounts
Non-executive directors
The Cadbury Board currently consists of seven Non-Executive Directors and three Executive Directors
Collectively they bring a valuable range of international experience and expertise as they all currently
occupy or have occupied senior positions within industry and public life All the Non-Executive Directors are
independent of management and have no relationships which could materially interfere with the exercise of
their independent judgement Subject to satisfactory performance a Non-Executive Director is appointed for an initial term of three years
After the initial three year term they may serve two additional three year terms with a maximum of nine years service on the Board as a general rule
A Non-Executive Director is expected to attend every Board Meeting including those held overseas
A Non-Executive Director is expected to make regular visits to the Groups operations to better understand its workings
Each Non-Executive Director is expected to devote such time as is necessary for the proper performance of their duties However an average time commitment of one to one and one-half days per month is suggested as a guideline
The base fee for a Non-Executive Director is pound55000 per year paid quarterly in arrears however this is increased if they are appointed chairman to a Board Committee
The Company has established a programme which enables a Non-Executive Director to allocate a portion of their fees to the purchase of Cadbury shares Currently all Non-Executive Directors use this facility
A copy of our most recent non-executive director appointment letter can be downloaded as a PDF file The
letter will be updated when any future Cadbury plc appointments are made
Terms of reference
The Board and its committees have adopted terms of reference which define their roles and responsibilities
These together with the Memorandum and Articles of Association for Cadbury plc can also be viewed here
Matters reserved for the Board
Remuneration Committee Terms of Reference
Nomination Committee Terms of Reference
CSR Committee Terms of Reference
Chief Executive Committee Terms of Reference
Memorandum and Articles of Association
Audit Committee Terms of Reference
Community
Growing community value
Growing value in the community is part of our heritage and integral to achieving our core purpose of working
together to create brands people love
We have always recognised that we do not operate in isolation but have responsibilities to our employees
and the society in which we operate Cadbury was well known for its pioneering work in the 19th century
providing housing education welfare and recreation facilities for the local community
As we have grown as a business the expectations of our consumers customers employees and wider
society have also increased Today we recognise that prosperous educated and socially inclusive
communities are central to our success
Why we invest in the community
Healthy highstreets are founded on healthy backstreets It is in the interests of business to have
prosperous communities educated employees and healthy happy consumers
Building and protecting our reputation Our good reputation has always been important to us - because
it is important to our people our brands our customers our regulators and increasingly our investors
Strengthening our company culture Community investment keeps us in touch with consumers makes
us more adaptable and responsive gives us new perspectives and skills and helps us work in more creative
ways
We invite you to find out about our commitments to growing community value throughout our business the
processes we use and see a few of the many people who have benefited from this commitment
Overview Consumer Cadbury Cocoa Partnership Corporate Governance Human Rights Employment Practices Ethical Trading Community
Purple Goes Green
Home Our Responsibilities
Human Rights
Human Rights
In 2007 we initiated a review of our global human rights strategy Following this we articulated our
approach in a document ldquoOur Approach to Human Rightsrdquo which explicitly communicates how our business
activities promote human rights This reflects both our heritage and our conviction that respect for human
rights is crucial to business success Our Approach to Human Rights reinforces the key areas where our
business activities impact on human rights and how we address this through our CSR and wider business
agenda
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
From Wikipedia
Jump to navigation search
Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Email Text Size
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
A Non-Executive Director is expected to make regular visits to the Groups operations to better understand its workings
Each Non-Executive Director is expected to devote such time as is necessary for the proper performance of their duties However an average time commitment of one to one and one-half days per month is suggested as a guideline
The base fee for a Non-Executive Director is pound55000 per year paid quarterly in arrears however this is increased if they are appointed chairman to a Board Committee
The Company has established a programme which enables a Non-Executive Director to allocate a portion of their fees to the purchase of Cadbury shares Currently all Non-Executive Directors use this facility
A copy of our most recent non-executive director appointment letter can be downloaded as a PDF file The
letter will be updated when any future Cadbury plc appointments are made
Terms of reference
The Board and its committees have adopted terms of reference which define their roles and responsibilities
These together with the Memorandum and Articles of Association for Cadbury plc can also be viewed here
Matters reserved for the Board
Remuneration Committee Terms of Reference
Nomination Committee Terms of Reference
CSR Committee Terms of Reference
Chief Executive Committee Terms of Reference
Memorandum and Articles of Association
Audit Committee Terms of Reference
Community
Growing community value
Growing value in the community is part of our heritage and integral to achieving our core purpose of working
together to create brands people love
We have always recognised that we do not operate in isolation but have responsibilities to our employees
and the society in which we operate Cadbury was well known for its pioneering work in the 19th century
providing housing education welfare and recreation facilities for the local community
As we have grown as a business the expectations of our consumers customers employees and wider
society have also increased Today we recognise that prosperous educated and socially inclusive
communities are central to our success
Why we invest in the community
Healthy highstreets are founded on healthy backstreets It is in the interests of business to have
prosperous communities educated employees and healthy happy consumers
Building and protecting our reputation Our good reputation has always been important to us - because
it is important to our people our brands our customers our regulators and increasingly our investors
Strengthening our company culture Community investment keeps us in touch with consumers makes
us more adaptable and responsive gives us new perspectives and skills and helps us work in more creative
ways
We invite you to find out about our commitments to growing community value throughout our business the
processes we use and see a few of the many people who have benefited from this commitment
Overview Consumer Cadbury Cocoa Partnership Corporate Governance Human Rights Employment Practices Ethical Trading Community
Purple Goes Green
Home Our Responsibilities
Human Rights
Human Rights
In 2007 we initiated a review of our global human rights strategy Following this we articulated our
approach in a document ldquoOur Approach to Human Rightsrdquo which explicitly communicates how our business
activities promote human rights This reflects both our heritage and our conviction that respect for human
rights is crucial to business success Our Approach to Human Rights reinforces the key areas where our
business activities impact on human rights and how we address this through our CSR and wider business
agenda
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
From Wikipedia
Jump to navigation search
Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Email Text Size
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Healthy highstreets are founded on healthy backstreets It is in the interests of business to have
prosperous communities educated employees and healthy happy consumers
Building and protecting our reputation Our good reputation has always been important to us - because
it is important to our people our brands our customers our regulators and increasingly our investors
Strengthening our company culture Community investment keeps us in touch with consumers makes
us more adaptable and responsive gives us new perspectives and skills and helps us work in more creative
ways
We invite you to find out about our commitments to growing community value throughout our business the
processes we use and see a few of the many people who have benefited from this commitment
Overview Consumer Cadbury Cocoa Partnership Corporate Governance Human Rights Employment Practices Ethical Trading Community
Purple Goes Green
Home Our Responsibilities
Human Rights
Human Rights
In 2007 we initiated a review of our global human rights strategy Following this we articulated our
approach in a document ldquoOur Approach to Human Rightsrdquo which explicitly communicates how our business
activities promote human rights This reflects both our heritage and our conviction that respect for human
rights is crucial to business success Our Approach to Human Rights reinforces the key areas where our
business activities impact on human rights and how we address this through our CSR and wider business
agenda
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
From Wikipedia
Jump to navigation search
Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Our Approach to Human Rights was published in December 2008 at the 60th anniversary of the Universal
Declaration of Human Rights (UDHR) It aligns well with the 2008 recommendations of the UN Special
Representative on Business and Human Rights John Ruggie on the role of business in human rights
of Cadbury products
From Wikipedia(See original Wikipedia article raquo) Last modified on 11 April 2011 at 1956
From Wikipedia
Jump to navigation search
Cadbury plc products include chocolate sweets (candies) mints and nut based chocolates
Table of Contents
1 Chocolate
11 Cadbury
111 Former Brands
12 Frys
13 Green amp Blacks
2 Sweets
21 Bassetts
22 Maynards
3 Mints and chewing gum
31 Trebor
32 Trident
33 Hollywood Chewing Gum
34 Cadbury Adams
4 Miscellaneous
41 Beverages
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
42 Baking
43 Others
5 References
Chocolate
Cadbury
Astros (South Africa no longer in production in the UK)
(Banana) Perky Nana
Boost (UK and Australia)
Bournville ndash plain chocolate (UK manufactured in France India)
Bournville (original)
Bournville Deeply Dark
Bournville Deeply Dark with Coffee
Bournville Old Jamaica
Bournville Orange
Buttons - milk chocolate buttons
Premium Dark ndash plain chocolate (Canada)
Premium Dark (original)
Premium Dark Roast Almond
Brunch Bar ndash breakfast cereal and chocolate bar
Caramilk - Caramel (Canada)
Caramello Koala (Australia)
Celebrations - gifting packs (India) [1]
Cherry Ripe (Australia)
Chomp
Clusters[2]
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Clusters
Peanuts
Raisins
Creme Egg
Creme Egg Minis
Creme Egg Twisted
Caramel Egg
Caramel Egg Minis
Crispy Crunch
Crunchie
Crunchie Blast
Curly Wurly
Curly Wurly Squirlies
Dairy Milk
Dairy Milk Bar and a Half[3]
Dairy Milk Whole NutHazelnut
Dairy Milk Fruit amp Nut
Dairy Milk Roast Almond
Dairy Milk Crackle (India)
Dairy Milk Shots
Dairy Milk Caramel
Dairy Milk Caramel Nibbles
Dairy Milk Buttons
Dairy Milk Bubbly (only available in larger block)
Dairy Milk Double Choc
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Dairy Milk Mint Chips (discontinued in the UK Ireland equivalent under the name of Dairy Milk Mint Crisp (crispy mint flavoured rice pieces) and New Zealand)
Dairy Milk Coconut Rough (Australia)
Dairy Milk Tiffin (Raisin amp Biscuit) (Ireland)
Dairy Milk Caramel whip - Nougat and Caramel
Dairy Milk White Top (Australia)
Dairy Milk Top Deck (Australia and South Africa)
Dairy Milk Double Decker (Australia)
Dairy Milk Triple Decker (Australia)
Dairy Milk Three Wishes (Australia)
Dairy Milk Macadamia (Australia)
Dairy Milk Peppermint (Australia)
Dairy Milk Peanut Butter (Canada)
Dairy Milk Turkish - Turkish Delight
Dairy Milk Black Forest (Singapore Malaysia Australia and New Zealand)
Dairy Milk Apricot Crumble Crunch (Introduced in 2008)[4]
Dairy Milk Cranberry amp Granola (Introduced in 2008)[4]
Dairy Milk with Crunchie Bits
Dairy Milk Cashew (Australia)
Dairy Milk Rocky Road (Australia)
Dairy Milk Desserts (Australia amp New Zealand)
Dairy Milk Desserts Banoffee Pie
Dairy Milk Desserts Berry Pannacotta (New Zealand)
Dairy Milk Desserts Boysenberry Shortcake
Dairy Milk Desserts Cregraveme Brulee
Dairy Milk Desserts Fudge Brownie
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Dairy Milk Desserts Lemon Cheesecake
Dairy Milk Desserts Tiramisu
Dairy Milk Melts
Dairy Milk Melts Velvety Milk
Dairy Milk Melts Deliciously Dark
Dairy Milk Melts Heavenly Praline
Dairy Milk Snaps
Dairy Milk Snaps
Dairy Milk Snaps Orange
Dairy Milk Snaps Mint
Dairy Milk Snaps Coconut
Dairy Milk Snaps Honeycomb
Dairy Milk Tasters (Dairy Milk Moments in Ireland)
Dairy Milk Thins
Dairy Milk Tiffin (still manufactured in Ireland)
Dairy Milk Whispers (Australia)
Dairy Milk Magic Elves
Double Decker
Dream ndash white chocolate
Chocolate Eacuteclairs
Eight Moments
Eight Moments Velvety Milk
Eight Moments Deliciously Dark
Eight Moments Indulgently Praline
Fingers (Produced under license by Burtons Foods)
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Fingers
Fingers White
Fingers Dark
Fingers Caramel
Fingers Mint
Fingers Toffee Crunch
Fingers Coconut (France)
Mini Fingers
Giant Fingers
Five Star (India) [5]
Flake
Flake (original)
99 Flake - ice cream variety (licensed to Fredericks Dairies)
Flake Dark - dark chocolate
Flake Snow - white chocolate (Formally known as Snowflake)
Flake Dipped
Flake Praline
Freddo
Freddo Caramel
Freddo White
Freddo Strawberry
Freddo Peppermint
Fudge
Gems (India) [6]
Jaffas (Australia and New Zealand)
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Koko (To be launched September 2009 in UK)[7]
Marble (Australia and New Zealand)
Milk Tray
Mini Eggs
Heroes
Mis-Shapes (discounted bags of assorted chocolate pieces that did not pass appearance testing)
Moro
Moro Gold (Australia)
Moro Peanut (Australia)
Moro Coconut (Australia)
Nutties (India)
Old Gold - plain chocolate (Australia)
Old Gold 70 Cocoa
Old Gold Macadamia
Old Jamaica Rum n Raisins
Perk (India) [8]
Picnic
Roses
Shots
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Snack
Snack Shortcake
Snack Wafer
Snack Sandwich
Snow Bites
Spots v Stripes Challenge Bar[9]
Spots v Stripes The Big Race[10]
Star Bar
Sweet Marie (Canada)
Temptations [11]
Time Out
Honeycomb Time Out
Twirl
Wispa
Wispa Gold - caramel [12]
Wunderbar (Canada and Germany)
Yowie
Former Brands
Amazin (UK)
Aztec (UK)
Country Style (UK)
Crave (Australia)
Creme Egg Mint (UK)
Dairy Milk Almond amp Honey
Dairy Milk Orange Chips
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Dairy Milk with Shortcake Biscuit
Dairy Milk with Creme Egg
Dairy Milk Crispies
Dairy Milk Wafer
Double Decker with Nuts
Dream with Strawberry Bits (limited edition summer 2004)
Fuse
Gambit Bar (Blend of milk and dark chocolate)
Inspirations
Mr Big
Paradise (Egypt)
Skippy
Spira
Strollers
Taz (rebranded as Freddo Caramel)
Wildlife Bar
Wispa Mint - mint
Wispa Bite - caramel and biscuit
Wispaccino (Wispa with coffee)
In addition to these chocolates a number of the brands have been sub-licensed to Fredericks Dairies to make a range of ice-cream versions In the United States most Cadbury branded chocolates are produced in Pennsylvania by the Hersheys chocolate company Brand names sold include the Caramilk and Dairy Milk as well as Fruit amp Nut (with raisins and peanuts) and Royal Dark brand
Frys
Chocolate
Chocolate Cream - dark chocolate with fondant centre
Peppermint Cream
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Orange Cream
Five Centres (no longer in production)
Turkish Delight
Green amp Blacks
Green amp Blacks is range of upscale organic and Fair trade chocolate The Maya Gold variety was the first UK product to be awarded Fairtrade certification in 1994 Green amp Blacks also produces a range of ice cream biscuits and hot chocolate
Milk
White
Maya Gold - dark chocolate with orange and spices
Almond
Raisin amp Hazelnut
Hazelnut amp Currant
Mint
Caramel
Cherry
Ginger
Butterscotch
Hazelnut Almond amp Brazil
Espresso - dark chocolate with coffee flavour
Dark amp Almond
Sweets
Bassetts
Liquorice allsorts
Fruit Allsorts
Desert Allsorts
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Sports Mixture
Jelly Babies
Milky Babies
Fruity Babies
Party Babies
Sherbet Lemons
Fruit Bonbons
Lemon Bonbons
Pear Drops
Dolly mixture
Sweetshop Favourites
Assorted Toffees
Murray Mints
Mint Creams
Mint Favourites
Imperials
Imperials Spearmint
Everton Mints
Animal Mix
Snakes
Sour Squirms
Maynards
Sours
Midget Gems
Fuzzy Peach
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Fruit Gums
Wine Gums
Swedish Berries
Mints and chewing gum
Trebor
Mints
Extra Strong Mints
Extra Cool Mints
Spearmints
Softmints
Softmints Peppermint
Softfruits
Softmints Ice (Pakistan)
Mini Mints
24-7
Trident
Trident Soft
Peppermint
Spearmint
Tropical Twist
Strawberry Smoothie
Trident Splash
Strawberry and Lime
Vanilla and Mint
Raspberry and Peach
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Email Text Size
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
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Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Apple and Apricot
Citrus and Blackberry
Trident Fresh
Oooh Peppermint
Aahh Spearmint
Coool Lemon
Trident Sweet Kicks
Mint with Chocolate
Hollywood Chewing Gum
Original
Style
Sphere
2 Fresh
Sweet Gum
Cadbury Adams
see Cadbury Adams products
Miscellaneous
Beverages
Bournvita
Cocoa
Orange Crush (Canada)
Cool Ridge - spring water (Australia)
Export Cola (Australia)
Highlights - low calorie hot chocolate
Highlights Chocolate
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Highlights Dark Chocolate
Highlights Mint
Highlights Orange
Highlights Fudge
Highlights Toffee
Highlights Cafeacute Latte
Highlights Espresso
Drinking Chocolate - hot chocolate powder
Instant Hot Chocolate
Passiona (Australia)
Spring Valley Juice (Australia)
Solo (Australia)
Baking
Bournville Cocoa
Cooking Chocolate
Milk Cooking Chocolate
Dark Cooking Chocolate
Minis
Buttons Minis
Curls Minis
Sprinkles Minis
Others
Bytes (India) [13]
Cadbury Dairy Milk Ice Cream - Chocolate chip ice cream
Cake Bars
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Cake Bars Milk Chocolate
Cake Bars Fruit amp Nut
Cake Bars Caramel
Cake Bars Mint Crisp
Cake Bars Orange Crisp
Cake Bars Strawberry Jam
Chocolate Gateau
Chocolate Tart
Milk Chocolate Spread (Produced under licence by Premier Foods)
Mini Rolls
Mini Rolls Milk Chocolate
Mini Rolls Caramel
Mini Rolls Strawberry
Vichy Pastilles (Cadbury France)
References
uarr httpwwwcadburyindiacombrandschoco4asp
uarr Clusters Cadbury 2009-01-15 httpwwwcadburycoukourproductstodayboxesbagPagesClustersaspx Retrieved 2009-06-06
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=199385
uarr 40 41 [1][dead link]
uarr httpwwwcadburyindiacombrandschoco2asp
uarr httpwwwcadburyindiacombrandschoco10asp
uarr httpwwwthegrocercoukarticlesaspxpage=articlesampID=202495
uarr httpwwwcadburyindiacombrandschoco3asp
uarr Cadbury Challenges the nation The Grocer William Reed Business Media 2010-08-16 httpwwwthegrocercoukarticlesaspxpage=independentarticleampID=211773 Retrieved 2011-03-07
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
uarr Cadbury launches pound65m Race Season campaign Business amp Leadership Business and Leadership 2011-03-01 httpwwwbusinessandleadershipcommarketingitem28655-cadbury-launches-6-5m-race Retrieved 2011-03-07
uarr httpwwwcadburyindiacombrandschoco7asp
uarr Wispa Gold makes a comeback Talkingretailcom 2009-05-29 httpwwwtalkingretailcomproductsproduct-news12673-wispa-gold-makes-a-comebackhtml Retrieved 2009-06-06
uarr httpwwwcadburyindiacombrandssnack1asp
[hide]v middot d middot Kraft Foods brands
Nabiscoand other snacks
Arrowroot middot Barnums Animals middot Better Cheddars middot Cheese Nips middot Cameo middot Chips Ahoy middot Claussen middot Club Social middot Corn Nuts middot Fig Newton middot Filipinos middot Fudgee-O middot Ginger Snaps middot Handi-Snacks middot Honey Maid middot In a Biskit middot Jell-O middot Lefegravevre-Utile (LU) middot Lorna Doone middot Mallomars middot Nilla middot Nutter Butter middot Oreo middot Peek Freans middot Planters middot Premium Crackers middot Ritz Crackers middot SnackWells middot Sociables middot Social Tea middot Stoned Wheat Thins middot Teddy Grahams middot Triscuit middot Vegetable Thins middot Wheatsworth middot Wheat Thins
Cadbury
Bassetts middot Boost middot Bournville middot Bournvita middot Brunch Bar middot Buttons middot Caramilk middot Chomp middot Clusters middot Creme Egg1 middot Creme Egg Twisted middot Crunchie middot Curly Wurly middot Dairy Milk (Caramel)1 middot Double Decker middot Dream middot Fingers middot Flake middot Freddo middot Frys middot Fudge middot Green amp Blacks middot Heroes middot Kent middot Kreacutema middot Koko middot La Pie qui Chante middot Maynards middot Milk Tray middot Mini Eggs middot Moro middot Mr Big middot Old Gold middot Pascall middot Picnic middot Poulain middot Roses middot Shots middot Snack middot Star Bar middot The Natural Confectionery Company middot Time Out middot Trebor middot Turkish Delight middot Twirl middot Vichy Pastilles middot Wispa
Cadbury Adamsand other gum
Bubbaloo middot Bubblicious middot Certs middot Chiclets middot Clorets middot Dentyne middot Halls middot Hollywood middot Malabar middot Stimorol middot Stride middot Sour Patch Kids middot Swedish Fish middot Trident
Other confectioneryAlpen Gold middot Bakers Chocolate middot Cocircte dOr middot Daim middot Freia middot Jet-Puffed middot Kvikk Lunsj middot Lacta middot Marabou middot Milka middot Prince Polo middot Terrys middot Toblerone middot Trakinas
CondimentsA1 Steak Sauce middot Bonox middot Bulls-Eye Barbecue Sauce middot Grey Poupon middot Kraft Mayo middot Miracle Whip middot Vegemite
Coffeeand other beverages
Cafeacute HAG middot Capri Sun2 middot Carte Noire middot Country Time middot Crystal Light middot General Foods International middot Gevalia middot GrandMegravere middot Jacobs middot Kenco middot Kool-Aid middot Maxwell House middot Nabob middot Onko middot Sanka middot Tang middot Tassimo middot Yuban
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Email Text Size
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Cheeseand dairy products
Athenos middot Breakstones middot Cheez Whiz middot Cool Whip middot Cracker Barrel middot Dairylea middot Deluxe middot Easy Cheese middot Knudsen middot Light nrsquo Lively middot Philadelphia middot Polly-O middot Singles middot Velveeta
Convenience foodsand baking goods
Bagel-fuls middot Boca Burger middot Calumet middot Good Seasons middot Kraft Macaroni and Cheese middot Lunchables middot Oscar Mayer middot Royal middot Shake n Bake middot Simmenthal middot South Beach Living middot Stove Top middot Sure-Jell
1In the United States these products are marketed by The Hershey Company (but made by Krafts Cadbury subsidiary) under a prior licensing agreement2This brand is owned by Rudolf Wild GmbH and manufactured under license by Kraft Foods only in the United States Canada and GreenlandTicker NYSE KFT middot Kraft Foods Corporate middot Kraft Media Center
Retrieved from httpmediawikifrdpteomacomwikiList_of_Cadbury_products
Categories All articles with dead external links | Articles with dead external links from June 2009 | Articles with invalid date parameter in template | Cadbury brands
Kraft Cadbury Strategic Company Profile
Posted on December 2 2009 by fftfft
Kraft Foods and Cadbury in Western Europersquos Food amp Drink Markets
Kraft Foods and Cadbury
in Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense from an end-
market point of view
bull To what extent would market dominance in selected product and country
markets result
bull Matching known product areas like Sweet and Chocolate Confectionery is one
thing but what about myriad other activities
bull Will later consolidation of the combined companies provoke further merger amp
acquisition activity
Reacutefeacuterencement internet Gratuit
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
This report Kraft Food Cadbury Profile at fftcom
Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
bull Would an acquisition by Kraft Foods of Cadbury make sense
from an end-market point of view
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
bull To what extent would market dominance in selected product
and country markets result
bull Matching known product areas like Sweet and Chocolate
Confectionery is one thing but what about myriad other
activities
bull Will later consolidation of the combined companies provoke
further merger amp acquisition activity
Report Description
Drawing on FFTrsquos extensive food amp drink markets database now in its 20th year this
report analyses several major aspects of the proposed acquisition of Cadbury by Kraft
Foods seen from the market end of the spectrum an innovative approach
1
Market
Dominance Product and country market shares
2
Sales
Turnover
Estimated final retail and foodservice values
(see note next page)
3
Country
Presence
Geographic distribution and size among 16
West European countries
These 3 strands are then draw together to provide an overall picture of the market
strengths and weaknesses of the two companies combined as illustrated in the
bubble chart below (actual abridged samples taken from report)
The four graphs above illustrate the analysis for Western Europe treated globally The
full report itself breaks down the market and company data in exhaustive product and
country detail
Brief Summary of the potential impact on the West European Food amp Drink
Market
The West European food amp drink market is estimated at Euros 1126 billion in
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
2008 Kraft Foods is estimated to have a 1298 and Cadbury a 0472 of
this total market or respectively final market sales turnovers of Euros 146
billion and Euros 53 billion respectively for a combined total of nearly Euros
20 billion Within their own product markets only the overall market shares come to
628 and 344 respectively for a combined weighted average of just over 7
The two companies are analysed both as a combined entity and individually against
the backdrop of the entire West European food amp drink market Detailed company
and market data by product and country are provided against the following
framework
Kraft
Foods
Cadb
ury
Combi
ned
bullNumber of product
markets in which present41 17 44
bullNumber of countries in
which present16 16 16
bull
Number of product amp
country value market
shares quoted
225 55 252
bull
Company sales turnover
(Euro billions at market
prices)
146 53 199
bull
Overall share of the total
West European food amp
drink market
130047
177
bull
Overall share regarding
the 44 products in which
they are present
628344
705
The report demonstrates that just 12 product markets contribute 90 of total
sales turnover in Western Europe and cover over half of the 252 country and
product market shares identified Thus while the combined companies
perform well in key markets they are also present in a great many scattered
and less rewarding product markets This situation naturally invites
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
consolidation and thus merger amp acquisition opportunities
Report Content
bull 90 pages (of which Main Report 50 pages and Detailed Data Table in
Annex 29 pages)
bull The two companies Kraft Foods and Cadbury are analysed both
individually and as a combined entity
bull The report is a hard data compilation presented essentially in the
form of commented charts and tables (see Table of Contents for
detail)
bull All supporting data is supplied including a 29-page table in the Annex
presenting for Kraft Foods and Cadbury individually and combined
By product and country
bull Key company subsidiaries
bull Company market shares
bull Company sales turnover
bull Country and product market values (Euro millions)
bull West European product market values (Euro millions)
bull Company country and product market share ranking
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
bull Major company brands
Key Market Definition Market data refer to all products sold for
final human consumption in retail foodservice and artisanal markets
(own-produced for own sale) thus excluding industrial and
intermediate consumption and auto-consumption Value markets are
in retail prices (including VAT excise and sales taxes and other
charges) and foodservice market buy-in prices Full product
definitions in six languages are available online at wwwfftcom For
the purposes of this report company sales turnover by product and
country are broadly estimated on the basis of ldquocompany market share
total market valuerdquo
Company sales turnovers These have been estimated on the basis
of company country amp product ldquomarket shares times total market size
by valuerdquo at retail and foodservice market buy-in prices While all
due care has been applied both these data are themselves produced
on a best efforts basis Thus sales turnover by product and country
given in this report are clearly rough estimates For the purpose of
assessing the product and country market performance of these
companies on a comparative basis this approach is here considered
perfectly satisfactory
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising
raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues
rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the
firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil
Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made -
continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the
cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong
performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising
commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It
attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two
positions in 20 of the worlds 50 largest confectionery markets Marketing Mix of CADBURY - December 4th 2010
Cadbury plc is a British confectionery company the industrys second-largest globally after the combined Mars-Wrigley[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge London Borough of Hillingdon England and formerly listed on the London Stock Exchange Cadbury was acquired by Kraft Foods in February 2010 The company was an ever-present constituent of the FTSE 100 from the indexs 1984 inception until its 2010 takeover[3][4]
The firm was known as Cadbury Schweppes plc from 1969 until a May 2008 demerger which saw the separation of its global confectionery business from its US beverage unit which has been renamed Dr Pepper Snapple Group Inc[5]
MARKETING MIXTHE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCTPRICEPLACE
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
PROMOTION
PRODUCTPRODUCT VARIANTS CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORYCADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONSCANDY CATEGORY HALLSBUBBLE GUM BRAND BUBBALOOBOURNVITA - THE LEADING MALTED FOOD DRINK (MFD) PRODUCT INNOVATIONS 1048766 5 STARCONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY1048766 PERKPERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
1048766 HEROESPACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASEPACKAGINGTHE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROMIMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICETHE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALESTODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKUldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAYVOLUME LED GROWTH STRATEGYCADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACEHIRES AT KEARNEY TO CURB COSTSCADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGINGTHE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIEDEARNINGS SENSITIVITY FACTORSCOCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
Share
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKETPLACEPLANT LOCATIONSIN INDIA CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLYDISTRIBUTIONCHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS ANDDETERGENTS WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLDDIRECTLY TO RETAILERS CADBURYS DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES CADBURY ISSETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS NATURE OF RETAIL OUTLETCHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENSPAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FORTHE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FORCHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDSPROMOTIONADVERTISEMENTSTHE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
CELEBRITIES ENDORSEMENTS
CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THEFOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGNPERKrsquoS SALE SURGED
THE BIG lsquoBrsquo FACTORTHE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADORCHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTHINDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDSWHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TOTEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENTCHANNELS
Cadbury customer marketing strategy questioned
ShareThis
Posted 29 March 2011 - 500pm
Cadbury is rethinking its Spots v Stripes customer marketing strategy it has been claimed amid
suggestions its attempts to publicise the confectioners Olympic sponsorship is failing
There has been internal criticism of the digital marketing approach taken by the firm as it has not
achieved the level of customer engagement originally hoped for Marketing Magazine reports
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
It suggested the brand is seeking a new digital agency to take the campaign forward and do more to build
up customer interaction as well as attracting a younger demographic in its customer base
However this has been denied by category vice-president for chocolate for Kraft UK Ireland and Nordics
Luca Miggiano who stated We are very happy about how the stripes activity is performing
The campaign began last year and includes a Facebook page to enable customers to become involved
as well as limited edition themed bars being sold in shops
Cadbury has strong historic roots in the UK but this association may be under threat due to the
willingness of Kraft to close British factories and move production overseas despite assurances given to
the contrary when it took over the firmIt recently put its factory at Keynsham near Bristol up for sale at a price of pound50 million having closed it days after the takeover
History
Here is a story of a major business which is diversifying by turning full circle back to where they
started from
John Cadbury started his business in 1824 in a shop selling tea coffee and chocolate based drinks
which he manufactured himself In those days chocolate was only afforded by the wealthy as it was
subject to a very high import tax but when this was reduced in the 1850rsquos it became a mass market
product and the business prospered You can read some more detail of the history here about the
strong heritage the company build up through the development of the Bourneville factory and village
with housing education training medical facilities and pension schemes for employees The heritage
also relied on the product though with pioneering experiments working with cocoa and chocolate
which John and his descendants carried out for example producing their first filled egg product in
1923
Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes The cafes
- reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea along with a
range of Cadbury-themed goods They will build on that all-important brand image and heritage ndash
David Morris who leads the team developing the idea says ldquohellip we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teasrdquo
Much as John Cadbury brought chocolate drinks to the masses in the 1850rsquos they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels with a price
of pound1450 They say that the plans started before the takeover by Kraft and are already well advanced
with negotiations taking place about locations so that they hope to open their first cafes in London
before the end of the year
But one part of the idea is something that Quaker John Cadbury would not have approved of They plan sell alcohol alongside the tea coffee and chocolate in order to differentiate themselves from Pret a
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Manger and Starbucks ndash whereas in 1824 John Cadbury opened his shop in order to give an
alternativA unique expose of the Cadbury story providing an unprecedented insight into the makings of an iconic brand
Cadburys Puple Reign for the first time tells the in-depth story and definitive history of the Cadbury brand and how it came to be the worlds pre-eminent chocolate brand It presents a no holds barred account of the rollercoaster ride the organization has experienced that has ultimately led to its success It is a story of endurance where in the UK Cadbury is a clear market leader
This fascinating journey that has been the history of Cadbury makes it an ideal example with which to illuminate the story of consumerism The company was established even before there were a mass of consumers to sell to and was at the forefront of many of the developments which facilitated the rise of mass markets
Putting product quality at the heart of the brand Harnessing the miracles of the Industrial and Transportation Revolutions to
drive explosive growth Industry consolidation via mergers and acquisitions to cement critical mass A radical approach to harnessing the potential of its workforce to create the
most effectively run company in Britain The virtuous circle of economies of scale which slashed prices and brought
chocolate to the masses Innovative marketing and selling approaches that put the Cadbury brand into
not just the minds of consumers but their hearts
Illustrated with fact anecdote and beautiful images from previously archived material this book provides the reader with an unprecedented insight into one of the worldrsquos most iconic brands These insights will help any consumer business that aspire to build longevity for their brand with lessons on how to better endear itself to consumers and how to turn that relationship into profitable sales
The book has the full backing from Cadbury and chairman Sir John Sunderland provides the foreword
e to the alcoholic drinks that most people drank at the time
Cadbury price strategy hits market shareBy Russell Lynch PA
Friday 11 April 2008
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Email Text Size
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Dairy Milk maker Cadbury Schweppes today said its share of the chocolate market suffered over Easter after it held back on price cuts
The confectionery giant which owns favourites such as Creme Egg and Green amp Blacks organic chocolate is under pressure from rising raw material costs
Our decision to limit our participation in aggressive seasonal Easter discounting has impacted our share the company said
The company said it was pleased with its Easter performance despite an earlier holiday restricting the selling season as UK revenues rose 3 in the three months to March
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
The Best Stock Picks Ever Join Now And Get Free Stock Alerts 90 Winners In 2010 Big Profits WhisperfromWallStreetcomStockPick
15 Reasons to buy Gold Gold two steps ahead how the rich keep getting richer New
Get Quote
gold rpt WealthdailycomGold_Report
Ads by Google
GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
A continued strong performance from gum brands such as Trident helped the overall groups confectionery revenues grow 7 and the firm maintained its revenue guidance for 2008
Cadbury has launched a new UK advert - featuring racing airport trucks - in an attempt to follow last years gorilla drumming to Phil Collins which became a cult hit
But the flooding of its Sheffield factory in last summers downpours - where Bassetts Liquorice Allsorts and Trebor mints are made - continues to affect its share of the UK market
The company saw its biggest growth in confectionery sales in the Americas led by an 8 rise in Halls cough sweets in the US during the cold winter months
Although chief executive Todd Stitzer said the economic outlook for 2008 remained challenging he also praised the groups strong performance in emerging markets such as India and Russia
The groups American beverages business Dr Pepper Snapple saw a modest decline in fizzy drinks sales over the period with rising commodity costs again responsible for the decline
The company is demerging the drinks business which also makes 7Up through a listing on the New York Stock Exchange in May It attempted to sell the operation last year but changed its mind after the credit crunch hit the ability of potential buyers to raise finance
The move will leave the remaining Cadbury operation as the worlds largest confectionery business with number one or number two positions in 20 of the worlds 50 largest confectionery markets
History of Cadbury
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham John sold coffee tea drinking
chocolate and cocoa at his shop Believing that alcohol was a main cause of poverty John hoped his products might serve as an alternative He also sold hops and mustard Like many
Quakers John had high quality standards for all of his products
At that time in England Quakers were prohibited from attending university since it was affiliated with the established church and their pacifist beliefs kept them from joining the military With
few opportunities available Quakers often went into business-related fields andor devoted their time to missions of social reform
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate Soon Johnrsquos brother Benjamin joined the company to form Cadbury Brothers of Birmingham The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854 Six years later the brothers dissolved their partnership because of Johnrsquos failing health and the death of his wife They left
the business to Johns sons George and Richard John devoted the rest of his life to social work and died in 1889
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
George and Richard continued to expand the product line and by 1864 they were pulling a profit Cadburyrsquos Cocoa Essence which was advertised as absolutely pure and therefore
best was an all-natural product made with pure cocoa butter and no starchy ingredients Cocoa Essence was the beginning of chocolate as we know it today The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham The factory and area
became known as Bournville
With Cadburyrsquos continued success in chocolate George and Richard stopped selling tea in 1873 Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers This resulted in Cadbury producing chocolate covered nougats bonbons delices pistache caramels avelines and more Cadbury manufactured its first milk chocolate in 1897 Two years later the Bournville factory employed 2600 people and
Cadbury was incorporated as a limited company
During World War I more than 2000 of Cadburyrsquos male employees joined the Armed Forces Cadbury supported the war effort sending warm clothing books and chocolate to the soldiers Cadbury supplemented the government allowances to the dependants of their workers When
the workers returned they were able to return to work take educational courses and injured or ill employees were looked after in convalescent homes During this period trade overseas
increased and Cadbury opened its first overseas factory near Hobart Tasmania The next year Cadbury merged with JS Fry amp Sons a past market leader in chocolate
Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes Workers plowed football fields to grow crops and the Cadbury St Johnrsquos Ambulance unit helped people during air raids Chocolate was considered essential
for the Armed Forces and civilians Rationing finally ended in 1949
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks The merged companies would go on to acquire Sunkist Canada Dry Typhoo Tea and more Schweppes
Beverages was created and the manufacture of Cadbury confectionery brands was licensed to Hershey
Today Cadbury Schweppes is the largest confectionery company in the world employing more than 70000 employees In 2006 the company had over $15 billion in overall sales In March of 2007 Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage businesses With almost 200 years in the business Cadbury Schweppes
will continue to prosper in the coming decades
Cadbury Product Timeline
1865 ndash Cadbury Cocoa Essence1875 ndash Cadbury Easter Eggs
Packing room at Cadburys Bournville factory
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
1897 ndash Cadbury Milk Chocolate1905 ndash Cadbury Dairy Milk
1908 ndash Cadbury Bournville Chocolate1915 ndash Cadbury Milk Tray
1920 ndash Cadbury Flake1923 ndash Cadbury Cregraveme Eggs
1929 ndash Cadbury Crunchie1938 ndash Cadbury Roses1948 ndash Cadbury Fudge1968 ndash Cadbury Picnic
1960 ndash Cadbury Buttons1970 ndash Cadbury Curly Wurly
1983 ndash Cadbury Wispa1985 ndash Cadbury Boost1987 ndash Cadbury Twirl
1992 ndash Cadbury Timeout1996 ndash Cadbury Fuse
2001 ndash Cadbury Brunchbar Dream amp SnowFlake
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes George Cadbury didnrsquot want to take mothers away from their children so he developed a
company rule that women had to leave work when they got married Each married woman was given a bible and a carnation as wedding gifts
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale
A miniature metal animal (elephant penguin owl fox duck squirrel rabbit or turtle) was given away with specially designed cocoa tins in 1934 In the same year Cadburys tokens
which came with packs of cocoa could be redeemed for lamps kettles and saucepans So many children joined Cadburyrsquos Cococub Club that it had 300000 members in 1936
Cadburyrsquos World Visitor Center opened in 1990 welcoming 400000 visitors in its first year
Cadbury launched a Get Active program in 2003 helping 10000 teachers get in shape
Cadbury IndiaBSE 500793 | NSE CADBURY | ISIN INE184A01014 | Food Processing
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
gold rpt WealthdailycomGold_Report
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GET QUOTE FINANCIALS ANNUAL REPORT COMPETITION CO INFO NEWS NOTICES CHARTS COMMENTS Management History Background Listing Locations Board Meetings AGMEGM Dividends Bonus Rights Splits
Company History - Cadbury India
1948 - The Company was Incorporated on 19th July as a private limited company under the name of Cadbury-Fry (India) Private Limited and commence business soon thereafter Manufacturing facilities were set up gradully 1964 - The Company undertook at its own cost and responsibility the development of cocoa growing in the country A specialist cocoa advisory service was created A cocoa research centre was also created together with seeding nurseries and distribution centres - Through its subsidiary Induri Farm Ltd the Company had set up facilities near Pune to breed cattle that would give improved yield of milk at economic feeding costs 1967 - Cadbury introduced the `Five Star and Gems chocolates in 1967 and 1968 respectively 1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt Ltd to Cadbury India Pvt Ltd on 7th June It was converted into a public limited company on 11th June An agreement was entered into
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
with Cadbury Overseas Ltd (COL) UK on 3rd May for technical services concerning new products and processes - The Company entered into an agreement with CSOL for the grant of a licence for continued use of the word `Cadbury as part of the Companys corporate name - The Company was grated a letter of intent for the manufacture of 6000 tonnes per annum of processed vegetable oilsfats (cocoa butter substitute) wholly for export - The Company also received a letter of intent for setting up manufacturing facilities in Jammu amp Kashmir for the production of apple juice concentrate Approval of Government was received for technical collaboration with Bulmers of the UK - Shares subdivided on 22031976 1360905 bonus shares issued in prop 10501 on 28041977 993677 shares issued (prem Re1 per shares) 143677 shares reserved for allotment to resident Indian directors their friends and employees and 850000 shares offered to the public in July 1978 - In December CSOL disinvested out of their holdings in the Company 290515 equity shares of Rs 10 each through an offer for sale at a premium of Rs 350 per share as follows (i) 130515 shares to V Mallya and ML Apte and (ii) 160000 shares to resident Indian shareholders as rights in proportion 110 out of which about 60000 shares were reserved for Indian directors and employees of the Company - After the offer for sale in December and new issue of capital in May 1979 the non-resident holding in the Company was reduced to 40 - With a view to upgrading the present technology improve quality of the products the Company proposed to acquire technology and process know-how from Cadbury Schweppes plc (CSP) who offer the said services only to their wholly owned subsidiary companies - The Company allotted during Jan-Feb 1993 along with its Rights Issue 2292000 equity shares of Rs 10 each at a premium of Rs 90 per share to CSOL 1979 - Industrial licence for the apple juice project was received and the project was commissioned on 16th September 1980
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
- 515808 shares issues (prem Rs 250 per share) in May 1979 70000 shares to UTI and 40000 shares each to LIC and GIC 44760 shares to Indian directors and employees of the Company and 321048 shares as rights to resident Indian shareholders in prop 14 1981 - The Company received a certificate to manufacture 2200 tonnes of chocolates at Indori 1982 - On 17th December the name of the Company was changed from Cadbury India Ltd to Hindustan Cocoa Products Ltd consequent to 60 of its shares being held by the Indian public 1984 - 1200000 bonus shares issued in prop 25 - The company launched its dairy milk chocolate which has now become the flagship brand of the company A diversification into the ice-cream market in 1989 by introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a subsidiary of Unilever) which was sold off to the latter in 1992 1985 - The Company explored the possibilities of entering into the business of software export 1986 - The Company received approval of the Company Law Board for undertaking software business and efforts were taken to explore the opportunities both at home and export markets 1987 - In chocolate group the Company launched new products such as `Crackle `Orange `Strawberry Krisp `Mello and `Wildlife bar For every `Wildlife bar sold the Company makes a contribution to the Wildlife fund as per an agreement entered into with the fund In the foods drinks the Company launched `Choc O Cheer - 4200000 bonus shares issued in prop 11
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
1988 - The Chocolate division introduced some more new products to upper and lower ends of the market In the food drinks area a higher protein drink under the brand name `Enriche was successfully introduced The Company diversified into ice-cream market and a product under the brand name `Dollops was test marketed in Hyderabad on New years day - In order to meet the growing demand for the Companys food drink products it was decided to eatablish a new factory at Malanpur Bhind District in the State of Madhya Pradesh 1989 - The product of the food drinks was marketed under the brand name `Enriche - Effective 1st December the name of the Company was changed from Hindustan Cocoa Products Ltd to Cadbury India Ltd to reflect the wider range of products manufacturedmarketed by the Company 1993 - With effect from 18th July the Companys Ice Cream business comprising manufacturing arrangements with two well known brands Dollops amp Lopstop was transferred to Brooke Bond India Ltd for a consideration of Rs 106265 lakhs and an assurance from the company to Brooke Bond that they would not make or sell Ice creams for a period of 8 years - During January-February the Company issued 1680000 equity shares of Rs 10 each for cash at a premium of Rs 90 per share on Rights basis in the proportion 15 (all were taken up) Allotment of 105 shares of these were kept in abeyance based on Court orders - 1680000 rights shares allotted (prem Rs 90 per share prop 15) Another 28000 shares allotted to employees etc (prem Rs 90 per share) in 1992-93 2292000 shares allotted to CSOL (prem Rs 90 per share) 105 shares kept in abeyance were allotted 1994 - The Company undertook a modernization and rationalisation programme at its Malanpur factory at a cost of Rs 40 crores
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
1995 - `Perk was launched from its Malanpur plant Towards the end of 1996 the Company has launched a new range of sugar confectionery `Googly a trangy fizzy fruit flavoured candy in Chennai under the brand name `Trebor - 7440000 bonus shares issued in prop 35 1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs150 each in the ratio of one equity share for every five shares held The company has fixed book closure for the purpose of determining rights entitlement between May 6 and June 2 - Cadbury India Ltd has launched Truffle - flavoured soft centre moulded chocolate bar The product was launched in Calcutta Mumbai and New Delhi during October with subsequent launches planned in Bangalore Chennai Hyderabad and other mini-metros in a phased-manner in November - Cadbury India is launching its well-known beverage Bournvita in sachets - 3961473 No of equity shares of Rs 10 each at a premium of Rs 140 per share allotted on rights basis in prop 15 - 32 shares kept in abeyance issued 1998 - Cadburys launches Picnic Cadbury India Ltd on March 23 announced the launch of Picnic in Karnataka It is being made at a specially imported new line in the state-of-the-art factory near Gwalior - Cadbury India is celebrating its golden jubilee in India To commemorate the occasion the company has organised a series of events for the employees and business associates in Mumbai the branch offices and plant sites - The Board of directors of Campco have approved the proposal to enter into an agreement with Cadbury - Cadbury India is exploring the possibility of generating revenue from Cadbury House its corporate headquarters at Pedder Road in south Mumbai 1999
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
- Cadbury India Ltd has launched a new product `Nice Crem under its sugar confectioner business The sugar candy has been launched only in Mumbai - During 1994-95 Cadburys entire range of products were introduced in Bangladesh Its new wafer product Perk was launched in Sep95 in Mumbai Delhi Calcutta Pune and Goa The company launched a new range of sugar confectionery Googly a tangy fizzy fruit flavoured candy in Tamil Nadu under the Trebor umbrella brand name 2000 - Cadburys has introduced Perk Slims a slimmer version of the wafe - The Company has relaunched Perk its chocolate-coated wafer it has four new layers covered in Cadbury Dairy Milk Chocolate - Cadbury India Ltd has launched a range of gift packs for Diwali - The Company had entered into a Memorandum of understanding on July 5th to sell its immovable property at Colaba Mumbai 2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate confectionery major Cadbury India Ltd with effect from February 5 - The Company has launched Sweet Nothings range of gift packs for Valentine Day 2002 -Cadbury SchweppesPlc acquires 3934 stake in its Indian subsidiary Cadbury India Ltd -Cadbury Scheweppes Pcl developed a new phenomenon allowing its consumers to define its brand profitle -Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd for sale of land at Thane -Cadburys market share has dipped to 707 due to competition -Cadbury India tapping unconventional marketing channels like non-retail chains
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
to drive their market expansion -The Maharashtra Food and Drugs Administration seizes stocks and charges cadbury with mis-branding -Cadburys buy out of pfizers confectionary brand is expected to set a strong base in the oral gratification category 2003 -Cadbury India launches Cadburys Heroes which is a blend of companys leading brands --Adams will now be a part of the mass markets division of cadbury India -Cadbury has roped in advertising firm called Lemon to handle creative for its products temptation and milt treat -Cadbury India has dropped Carat India and roped in Madison Media for the media planning and buying -Cadbury India relaunched its flagship brand Cadbury Dairy Milk -Cadbury to tie up with BPL Mobile for SMS vending services -Cadbury India has been identified as innovation centre by its overseas parent 2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk 2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri Managing Director of the Indian sub-continent has been appointed Commercial Strategy Director for Asia-Pacific and will be based in Singapore 2007 - Cadbury India has rolled out a wafer-based chocolate called Ulta Perk nationally Ulta Perk has been test marketed in southern states like Tamil Nadu and Karnataka for over 6 months and is now being launched in other parts of India The product is targeted towards teenagers and youth Ulta Perk will be the second product offering from Cadbury in the chocolate-wafer segment after the Perk brand
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
Northfield Ill-based Kraft Foods Inc(NYSE KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love Proudly marketing delicious biscuits confectionery beverages cheese grocery products and convenient meals in approximately 170 countries Kraft Foods had 2010 revenue of $492 billion more than half of which was earned outside North America Eleven of the companyrsquos iconic brands-including Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia and Trident-generate revenue of more than $1 billion annually and 40 have been loved for more than a century A leader in innovation marketing health amp wellness and sustainability Kraft Foods is a member of the Dow Jones Industrial Average Standard amp Poors 500 Dow Jones Sustainability Index and Ethibel Sustainability IndexFor more information visit wwwkraftfoodscompanycom and wwwfacebookcomkraftfoodscorporateHeritage We have come a long way since JL Kraft started selling cheese from a horse drawn wagon in 1903 Hard work imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries Everyday One at a timeSome fast facts on the combined company
Our Global Reach Approximately $50 billion in revenues 25+ of global revenue from emerging markets 1 in global confectionery 1 in global biscuits More than 50 of global revenue from snacks and confectionery
Our Brand Portfolio 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old 80 revenue from 1 share positions
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
With the blessing of Cadburyrsquos board Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 02589 Kraft share for each Cadbury share) The deal values Cadbury
at a 19 premium to our 703 pence per share fair value estimate which we are now raising to the
deal price and is 130x 2009 earnings before interest taxes depreciation and amortisation In our
opinion Kraft is paying a fair price for this attractive asset and a bidding war for Cadbury is highly
unlikely given that the deal has the backing of the board so we expect the saga to finally come to a
close Read our full response to the bid developments here
Fair value estimate 840p brvbar Fair value uncertainty Medium brvbar Economic moat Wide
Thesis
(Last updated 190110)
Although we have been encouraged by Cadburys efforts to trim more fat from its cost structure the
global confectionery firms track record of generating targeted margin expansion goals is less than
pristine We believe this poor performance had cast doubt on whether Cadbury would ultimately reach
its elevated guidance As a result Kraft was able to swoop in and acquire this highly attractive asset
before management had a chance to right the ship In our opinion Cadbury shareholders are receiving
a great price for their shares
Cadbury is a leading player in the global confectionery market with nearly 105 share securing its
leading position by making more than 40 acquisitions in confectionery and beverages during the last
20 years Many of its acquisitions were sound from a strategic standpoint For example in 2003
Cadbury acquired the Adams portfolio of brands for $42 billion which catapulted it into the second-
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
leading position in the higher-margin gum business and expanded its presence in developed and
emerging markets
While the acquired confectionery businesses strengthened Cadburys global foothold allowing these
businesses to run with a high degree of autonomy it gave the firm a bloated management structure
too many inefficient manufacturing plants and a proliferation of stock-keeping units and innovation
projects that added unneeded complexity As a result the companys low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts
Despite posting impressive top-line results Cadburys inability to improve its margins has been a thorn
in the side of the firms investor base We contend that this bloated management structure and
inefficient operating network opened the door for the global confectionery firm to be acquired In our
view Cadbury shareholders are receiving a significant premium for their shares The combined firm
will leapfrog MarsWrigley to operate as the leading player in the global confectionery space Further
we anticipate that faster-growing developing and emerging markets will account for 25 of the
consolidated firms sales up from 20 currently
Valuation
Were raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firms shares With the blessing of Cadburys board Kraft sweetened its bid for Cadbury to 500p
per share in cash and 01874 Kraft shares for each Cadbury share (up from its previous offer of 300p
per share in cash and 02589 Kraft share for each Cadbury share) We expected that Kraft would be
forced to increase its offer price or the cash portion of the deal or both to convince Cadburyrsquos
shareholders to accept an offer so we are not surprised by the news At a total consideration of around
$19 billion the deal values Cadbury at 130 times 2009 earnings before interest taxes depreciation
and amortisation In our opinion Cadbury shareholders are receiving a great price and we expect the
deal to go through
Risk
If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation Cadburys ongoing restructuring efforts
may prove to be disruptive to the firms operations Further Cadburys profitability may be hurt by
elevated commodity costs particularly cocoa sugar and fuel costs Finally with nearly 40 of its
sales resulting from developing and emerging markets the firm is exposed to volatile political and
economic climates that could pressure sales
Management amp Stewardship
Todd Stitzer is the CEO at Cadbury while Roger Carr assumed the chairman role in July 2008 In our
opinion the separation of these roles between two individuals is a positive We also believe that
Stitzers experience of more than 20 years at the firm most recently as chief strategy officer is
beneficial as Cadbury faces several challenges Overall we believe compensation is fair Two thirds of
compensation is variable and performance-based which is a plus in our eyes In addition we believe
the metrics by which management is critiqued--underlying earnings per share and returns on invested
capital--appropriately align managements interests with shareholders We are further encouraged
that Cadbury has put share ownership guidelines in place for its executive management group
However we would prefer if directors were elected on an annual basis rather than the current three-
year staggered structure It is also worth noting that Ken Hanna stepped down as CFO in April 2009
We liked Hanna and he will surely be missed However we believe the appointment of Andrew
Bonfield (most recently CFO of Bristol-Myers Squibb) was a sound decision Although Bonfield is new to
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
the confectionery industry we contend that his financial experience should be a plus as Cadbury seeks
to trim the excess fat from its operating structure and enhance its profitability
Overview
Growth More than $10 billion of acquisitions have diversified Cadburys business into faster-growing
more-profitable segments of the confectionery market Going forward we expect that the firm will
seek to drive growth through small bolt-on acquisitions as well as further penetration of its existing
brand portfolio
Profitability Management projects a midteens operating margin by 2011 which we now believe is an
attainable goal
Financial Health Were not concerned by Cadburys debt levels as the firm operates with nearly
pound14 billion of long-term debt and adjusted earnings before interest and taxes of more than 4 times
through the first six months of 2009
Profile Cadbury operates as the leading competitor in the global confectionery market with product
lines spanning the chocolate candy and gum segments The firm distributes its well-known brands
(such as Halls Trident Green amp Blacks and Dentyne) in more than 80 countries around the world
After completing the sale of its Australian beverage segment in April 2009 Cadbury is now exclusively
focused on its confectionery operations
Strategy Cadburys primary objective is to drive margin gains by improving the efficiency of its
business To achieve this the firm is reducing stock-keeping units and scrapping 15 of its
manufacturing and distribution centres by 2011 In addition Cadbury is placing increased emphasis on
its key brands markets and customers Finally the firm is concentrating on enhancing operations in
Russia and China which have been a drag on profits
Bulls Say
1 We believe the firm has substantial opportunity to trim excess fat from its operating structure and
enhance profitability Even after its cost-reduction programme Cadbury remains far more inefficient
than its global peers
2 Cadbury is a leading player in the worldwide confectionery industry with 105 global share The
firm competes in all three segments of the market chocolate sugar and gum
3 Private-label competition is minimal in the confectionery space as these firms only control about 5
of the market
4 Nearly 40 of Cadburys confectionery sales result from faster-growing emerging markets
Bears Say
1 Given the economic weakness in Cadburys more mature markets such as the US and UK as well as
the impact that slowing growth in the Western world could have on emerging and developing markets
we believe Cadburys growth could come under pressure
2 Escalating commodity costs are a persistent issue for all packaged-food firms Cadbury expects its
input costs to rise 6-8 in 2009 particularly due to higher cocoa prices
3 Cadbury failed to deliver on 50-75 basis points of annual margin expansion during its cost-reduction
programme
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing
4 If Krafts bid for Cadbury somehow falls through Cadburys share price would likely decline and we
would lower our fair value estimate to a stand-alone valuation
Cadbury channels access and distribution levels
View this essay
Essay Details
Businesss Research Papers gt Marketing
ldquo Marketing Principles Trading and Exchange CADBURY Channels Access and Distribution Levels Purpose of a network and
marketing channel iexcl Value network is a system of partnerships and alliances that a firm creates to source augment and deliver its
offerings iexcl The domestic manufacturing sites are situated at the following locations 1 Claremont Tasmania - At this site
Cadbury manufacture boxed chocolate assortments moulded chocolate blocks chocolate confectionery bars and food drinks for the
retail and industrial markets 2 Ringwood Victoria - At this site Cadbury manufacture confect direct marketing channels as well
as one-level channels and two-level channels iexcl Their official website informs buyers about all of Cadburys products and services
including information about products recipes health and nutrition sponsorship fundraising etc iexcl It can also provide a way for
retailers and Cadbury to communicate with each other through email about future orders upcoming promotions and any other relevant
information iexcl Cadbury uses the internet as a service and information channel which allows it to describe the products in detail with
the use of visual aids and creating an effective communication channel in reaching its customers What role does relationship marketing
plan in the
- Consumer Trends
- Listening to consumers
- Responding to consumer needs
- What We Are Doing
- Responding to consumer health concerns - 12 point plan
- Products and innovation - measurable progress
- Marketing and children - we can help
- Whats our path timing and tracking
- Portion sizing - variety and moderation
- Labelling - an industry first
- Vending in schools - by invitation only
- Consumer insight and research - sharing to help others
- Energy balance - we support building understanding
- Community - our people are all part of their local community
- Business Partners - our customers and suppliers
- Employee health and wellbeing - because our employees are consumers too
- Science nutrition and innovation - we have increased support
- Stakeholders - we value what others think
- Our Marketing Code
- What is the Cadbury global marketing code
- Application and governance
- Sourcesreferences
- General references
- Marketing to Children
- Employment Practices
- Cadbury Cocoa Partnership
- The Partnership will focus on
- Overview
- A Socially Responsible Company
- Corporate Governance
- Non-executive directors
- Terms of reference
- Community
- Growing community value
- Why we invest in the community
- Human Rights
- Kraft Cadbury Strategic Company Profile
- Kraft Foods and Cadburyin Western Europersquos Food amp Drink Markets
- Report Description
- Report Content
- Cadbury price strategy hits market share
- Cadbury customer marketing strategy questioned
- Cadbury price strategy hits market share
- Sponsored Links
- Cadbury India
- Cadbury channels access and distribution levels
- Essay Details
- Businesss Research Papers gt Marketing