Cadbury vs Kraft

Kraft's attempted takeover of Cadbury has been one of the most high profile attempts in business for a while, drawing speculation and rumours from those wanting to know if the deal is going to go ahead.

Of the 'Big Five' in terms of world confectionery sales in 2008, Cadbury ranks second, while Kraft ranks fifth so in other words, it could be seen as Kraft was trying to take over a much bigger company.

Next Generation Food takes a look at chocolate around the world, breaking down consumption of chocolate around the world, and taking a look atCadbury Vs Kraft in terms of products.

As the current Cadbury and Kraft situation stands, Kraft made a second bid last Monday for Cadbury, which Cadbury dismissed as being too low at GBP£9.8 billion - lower than its original GBP£10.2 billion in September.

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Union

Now, according to the British paper The Times, Unite, the union representing Cadbury workers, has written to Irene Rosenfeld, the chief executive of Kraft, demanding more details about its plans for the British confectioner if its bid is successful.

The union has given Kraft 14 days to respond to the letter, a copy of which has been sent to Todd Stitzer, the chief executive of Cadbury. A source at the union said that if the American company did not give satisfactory answers to its questions, "the gloves will be off" and it would start to lobby hard against the Kraft bid.

The union has asked for guarantees that no sites will be closed and no compulsory redundancies initiated for five years after the proposed acquisition. Unions representing Kraft workers have also been in contact with management about their future. Kraft and Cadbury employ 145,000 people around the world between them.

Kraft has said that it will keep open Somerdale, the Keynsham factory that Cadbury has earmarked for closure, if it its bid is successful. It is understood that the company wants to keep Somerdale for production for the British market, using Cadbury's Polish factory, which was due to take over Somerdale's production, to make some of its products for the European market. Cadbury plans to close the Somerdale factory by March, with the loss of about 500 jobs.

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