and its impact 4m strategic HRM

perspective
Cadbury
British company started by Wealthy
Quaker John Cadbury in 1824
Started as a shop selling chocolates
based drinks
His sons took the business into the big
time building the Bournville development
some 45yrs later

Cadbury
Cadbury began making the milk chocolates in 1897 &
dairy milk in 1905.The company made its first major
takeover in 1921 buying rival Fry- another landmark soon
followed with production of its first filled egg product in
1923.
As Quakers , the Cadbury family cared about the well-
being of its staff, setting new standards for working and
living conditions in Victorian Britain. By the mid-
1930s,more than 100 acres around the Bournville factory
were devoted to recreation.
When Cadbury bought the drinks firm Schweppes in
1969 it became powerful force in the global food industry.
It sold its drink interest-now the Dr Pepper Snapple
company in 2008

Kraft
It started in 1903 with a capital $65
Started as a wholesale cheese business in
Chicago
Mr. Kraft was on the brink of revolutionizing food
manufacturing, not only in Chicago, but around
the world.
1916, Kraft was granted a patent for what
became known as process cheese.
In 1920,Kraft entered the Canadian market by
purchasing MacLaren’s Imperial Cheese Co. Ltd
1945, the company name changed toKraft
Foods

Kraft
2000, acquiredNabisco Holdings and combined
the two food giants to become Kraft Foods Inc.
2001,Kraft stock began trading on the New York
Stock Exchange under the symbol “KFT.”
2007, Kraft Foods Inc. became a fully
independent company
2008, Kraft Foods Inc. (KFT) replaced American
International Group Inc. (AIG) in the Dow Jones
Industrial Average

Kraft and Cadbury: How they compare

Kraft: the world's second-biggest confectionery
company will form part of the world's second-
largest food company.
Kraft currently manufactures and supplies about
40 food brands across the world, ranging from
confectionery products such as Oreo biscuits and
Toblerone to Kenco coffee, Philadelphia cream
cheese and frozen pizza.
Cadbury sells chocolate, sweets and chewing
gum around the world. Chocolate brands include
its signature Dairy Milk bar, as well as Trident
chewing gum and Halls cough sweets

Kraft and Cadbury: Why

Merger
After the Second World War, Cadbury
joined with US drinks giant Schweppes in
the 1960s as it looked to expand overseas,
but the firms split in 2008
Kraft has been touted as a possible buyer
for Cadbury ever since it demerged its US
soft drinks business in May last year,
leaving it vulnerable to a takeover.
A month earlier, Cadbury lost its status as
global confectionery leader after Mars paid
$23bn for Wrigley's global business
As per Kraft CEO, Irene Rosenfeld, combination
of these two companies will increasingly
consolidation in the confectionery industry and
standalone Cadbury “has limited opportunities for
value creation”.
Kraft would also benefit from Cadbury’s broad
geographical reach, in particular its strong
position in the developing Indian and Mexican
markets
Cadbury would profit from Kraft’s extensive
distribution network in Russia, China and Brazil,
according to Rosenfeld
Kraft and Cadbury: Biding
First Bid of £10.2bn ($16.7bn) on 7th Sep was
rejected unequivocally by Cadbury
Initial offer seems undervalues to Cadbury
Cadbury Said “Mars was paid 19.5 times

EBITDA for Wrigley in May 2008, and arguably Cadbury has much
more profit growth potential than Wrigley had at that time.”

This leadsKraft to go public with the bid in order

to “encourage and further” the process. Shares

of Cadbury soared 35 per cent at the start of
London trading on the news