Tuesday, February 22, 2011

Cadbury plc- Rishte Pakne do (Hold on the Relations)

Hi everybody!!!! It been a long time since the last post. I got a bit positive result with last post on "Infosys". So with the same energy of encouragement, i am here in front of you.
So have a mug of coffee or tea, have a comfortable seat and concentrate on the page.

Almost 80 out of 100 loves chocolates a lot, that too if it is Bournville, Dairy Milk Crackle, Dairy Milk Roasted Almond, Dairy Milk Fruit and Nut, Dairy Milk Silk.......

Now the reader may thinks that 'DamnIt Stop Stop don't say more. I couldn't control. I'm SAliVAtiNG o_O'.

Why the hell am i speaking about all these nonsense?

The answer lies under the most delicious chocolates given above. If we observe it clearly then we come to a conclusion that ''Ohhh!!! yeah it is Cadbury''

If you thought so, then you are absolutely correct.

So my journal is about Cadbury plc now. Actually whenever we eat some chocolates then we get a small doubt as from which country is it?, How is possible to be delicious enough compared to others? Here i am going to post something about The great Cadbury which is running with successful profits and growth.
Here we go...
It is not a company which was started in early 90's or else.
It is not a company like many others who will have a less life cycle.
It is not even a company started with manufacturing facilities.
Cadbury plc is a British confectionery company, the industry's second-largest globally after the combined Mars-Wrigley. Cadbury was controversially acquired by Kraft Foods in February 2010, after integration the combined Cadbury and Kraft companies became the largest confectionery company in the world again.

Cadbury got a history of 1820's and withstood in the market since its 
introduction. It is not a company which creates many controversies and leaves the market quick. It is the company which drives the human values and works with respect of society, culture of the area and values of the people. This company got a history of nearly two centuries of static growth.
Cadbury is an innovative idea of a normal person. It is better to say ideas rather than idea because many products were introduced in the regular intervals in order to keep the interests of the public on the product. This affected competitors longer period existence in the market.
So if we go deeply how the products were introduced into market and the way they bound with the customers,
In 1824, John Cadbury began selling tea, coffee, and drinking chocolate, which he produced himself, at Bull Street in Birmingham, England. John Cadbury later moved into the production of a variety of Cocoas and Drinking Chocolates being manufactured from a factory in Bridge Street, supplying mainly to the wealthy due to the high cost of manufacture at this time. During this time a partnership was struck between John Cadbury and his brother Benjamin. At this time the company was known as 'Cadbury Brothers of Birmingham'.

In 1850s the industry received a much needed boost with the reduction in high import taxes on cocoa; this allowed chocolate to become more affordable to everyone.

Due to the popularity of a new expanded product line, including the very popular Cadbury's Cocoa Essence, the company's success led to the decision in 1873 to cease the trading of tea. Around this time, master confectioner Frederic Kinchelman was appointed to share his recipe and production secrets with Cadbury, which led to an assortment of various chocolate covered items.

Having taken over the business in 1861, John Cadbury's sons Richard and George decided in 1878 that they needed to find new premises. Requiring better transport access for milk that was inward shipped by canal, and cocoa that was brought in by rail from London, Southampton and Liverpool docks, the Cadbury's started looking for a new greenfield site. In 1878 they acquired the Bournbrook estate, comprising 14.5 acres (5.9 ha) of countryside 5 miles (8.0 km) south of the outskirts of Birmingham.

Then after from 1900's they started to follow strategy of introducing new products of new flavors. Those are as follows

  • 1865: Cocoa Essence
  • 1875: Easter Eggs
  • 1897: Milk Chocolate
  • 1897: Cadbury Fingers
  • 1905: Dairy Milk
  • 1908: Bournville Chocolate
  • 1915: Milk Tray
  • 1920: Flake
  • 1923: Creme Egg
  • 1929: Crunchie
  • 1938: Roses
  • 1948: Fudge
  • 1960: Dairy Milk Buttons
  • 1968: Picnic
  • 1970: Curly Wurly
  • 1974: Snack
  • 1983: Wispa (relaunched 2007)
  • 1985: Boost
  • 1987: Twirl
  • 1992: Time Out
  • 1996: Fuse
  • 2001: Brunch Bar, Dream and Snowflake
  • 2010: Cadbury dairy milk silk, Wispa Gold(after relaunching, made permanent in   2010), Dairy Milk Bliss
These are the products which are introduced to make their position strong in the market. 
Gradually with the introduction of new products, they simultaneously started expanding their business to other parts of the world like Australia, New Zealand, India like so on to more than 200 countries in the world. 

Till now we got to know about the company's development. Now let us we know some negative angles of the company.

Controversial Issue of Acquisition by Kraft Foods:

On 7 September 2009 Kraft Foods made a £10.2 billion (US$16.2 billion) indicative takeover bid for Cadbury. The offer was rejected, with Cadbury stating that it undervalued the company.  Kraft launched a formal, hostile bid for Cadbury valuing the firm at £9.8 billion on 9 November 2009. Business Secretary Peter Mandelson warned Kraft not to try to "make a quick buck" from the acquisition of Cadbury. On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal and that Kraft would purchase Cadbury for £8.40 per share, valuing Cadbury at £11.5bn (US$18.9bn). Kraft, which issued a statement stating that the deal will create a "global confectionery leader", had to borrow £7 billion (US$11.5bn) in order to finance the takeover.

The acquisition of Cadbury faced widespread disapproval from the British public, as well as groups and organisations including trade union Unite, who fought against the acquisition of the company which, according to Prime Minister Gordon Brown, was very important to the British economy. Unite estimated that a takeover by Kraft could put 30,000 jobs "at risk", and UK shareholders protested over the Mergers and Acquisitions advisory fees charged by banks. Cadbury's M&A advisers were UBS, Goldman Sachs and Morgan Stanley. Controversially, RBS, a bank 84% owned by the United Kingdom Government funded the Kraft takeover.

This was a great controversy because the great Cadbury's share was bought at just at 8.50 euro. Later on it was settled with the negotiations of the authorities with government and workforce. 

So by this my journal on Cadbury comes to last stage. Before leaving this post i wanna say some facts about the company. So here they are..


Cadbury is the largest confectionary company in the world and has its presence in Beverages in Australia and Americas. The brands that are enjoyed in almost every country around the world are Schweppes, Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious, and Bassett. 

- Cadbury's employs about 60,000 people in 200 countries 
- Cadbury is the no. 1 confectionary company in the world 
- Cadbury is the no. 2 gum company 
- Cadbury is the no. 3 beverages company

List of Cadbury products:

If it comes to the list of products of Cadbury, it is a bit difficult to post here because it contains a big product mix. So for the list of products, kindly visit this.. http://en.wikipedia.org/wiki/List_of_Cadbury_products

Cadbury plc
Type Subsidiary of Kraft Foods
Industry Confectionery
Founded 1824
Headquarters Uxbridge, London, United Kingdom
Products See list of Cadbury products
Revenue GB£5,384 million (2008)
Operating income GB£388 million (2008)
Net income GB£364 million (2008)
Employees 71,657 (2008)
Parent Kraft Foods

So friends, my work comes to an end. I hope that this time i did a bit hard work compared to earlier post.
Thanks for visiting my blog folks.
Keep smiling always and try to find enjoyment in every moment of life friends. 


                                                                                                                                                               ............ Koundinya

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