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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 - it's 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 tomorrow's 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 we're always checking that our recipes and ingredients
are right for today's 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 Today's 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 salt/sodium 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 and/or 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 placement/scheduling 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.
What's 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 people's 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 £1.45m 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 consumers.
1. 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 governance


1. 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 group's President of Commercial Strategy and put before the
company's Food Strategy Group for policy approval.
Sources/references
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, http://www.aana.com.au/regulatory_overview.html (accessed July
2004)

Principles of Food and Beverage Product Advertising, Confederation des industries agro-alimentaires de I'UE
- the confederation of EU food and drink industry (CIAA)
http://www.gwa.de/fileadmin/download/Kommbranche/
CIAA_Principles.pdf (accessed July 2004)

World Federation of Advertisers (WFA): www.wfanet.org

European Advertising Standards Alliance (EASA): http://www.easa-alliance.org/about_easa/en/about.html

Marketing to Children:

Self-Regulatory Guidelines for Children's Advertising, Children's Advertising Review Unit (CARU),
http://www.caru.org/guidelines/index.aspx (accessed July 2004).

Code for Advertising to Children, Australian Association of National Advertisers (AANA) recommendations,
http://www.aana.com.au/codes.html (accessed July 2004)

Report of the APA Task Force on Advertising and Children, American Psychological Association (APA).
February 20th, 2004. http://www.apa.org/releases/childrenads.pdf (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 & opportunity reflecting the diversity of the societies in which we operate

• encourages consultation & dialogue with employees

• provides leading-edge rewards & 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 world's 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 on:


1. 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 e.g. 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 Cadbury's 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 Cadbury's 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, UNDP's Resident Representative in Ghana Daouda Touré 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 £1m in 2008 as a seed fund to establish the Cadbury Cocoa Partnership, with
annual funding levels rising to a steady rate of £5m 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' BiTC's 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 92.5%, up from 89% and
87% in the previous two years.

Cadbury has participated in Business in the Community (BiTC) Corporate Responsibility Index since the
Index's 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 & 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 Group's 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 £55,000 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, “Our Approach to Human Rights ” 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

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Cadbury plc products include chocolate, sweets (candies) mints and nut based
chocolates.
Table of Contents
1 Chocolate
1.
Cadbury
1
1.1.
Former Brands
1
1.
Fry's
2
1.
Green & Black's
3
2 Sweets
2.
Bassett's
1
2.
Maynards
2
3 Mints and chewing gum
3.
Trebor
1
3.
Trident
2
3.
Hollywood Chewing Gum
3
3.
Cadbury Adams
4
4 Miscellaneous
4.
Beverages
1
4.
Baking
2
4.
Others
3
5 References

Chocolate

Cadbury

Astros (South Africa, no longer in production in the UK)

(Banana) Perky Nana

Boost (UK and Australia)

Bournville – 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 – plain chocolate (Canada)

Premium Dark (original)

Premium Dark Roast Almond

Brunch Bar – '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 Nut/Hazelnut

Dairy Milk Fruit & 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 & 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 & Granola (Introduced in 2008)[4]

Dairy Milk with Crunchie Bits

Dairy Milk Cashew (Australia)

Dairy Milk Rocky Road (Australia)

Dairy Milk Desserts (Australia & New Zealand)

Dairy Milk Desserts Banoffee Pie

Dairy Milk Desserts Berry Pannacotta (New Zealand)

Dairy Milk Desserts Boysenberry Shortcake

Dairy Milk Desserts Crème 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 – white chocolate

Chocolate Éclairs

Eight Moments

Eight Moments Velvety Milk

Eight Moments Deliciously Dark

Eight Moments Indulgently Praline

Fingers (Produced under license by Burton's 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 Frederick's 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 & 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


Frederick's Dairies to make a range of ice-cream versions. In the United States,
most Cadbury branded chocolates are produced in Pennsylvania by the Hershey's
chocolate company. Brand names sold include the Caramilk and Dairy Milk, as well
as "Fruit & Nut" (with raisins and peanuts) and "Royal Dark" brand.

Fry's

Chocolate

Chocolate Cream - dark chocolate with fondant centre

Peppermint Cream

Orange Cream

Five Centres (no longer in production)

Turkish Delight

Green & Black's

Green & Black's 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 & Black's also produces a range of ice cream, biscuits, and hot chocolate.

Milk

White

Maya Gold - dark chocolate with orange and spices

Almond

Raisin & Hazelnut

Hazelnut & Currant

Mint

Caramel

Cherry

Ginger
Butterscotch

Hazelnut, Almond & Brazil

Espresso - dark chocolate with coffee flavour

Dark & Almond

Sweets

Bassett's

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 Café 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 & 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

↑ http://www.cadburyindia.com/brands/choco4.asp

↑ "Clusters". Cadbury. 2009-01-15.


http://www.cadbury.co.uk/ourproducts/today/boxesbag/Pages/Clusters.aspx.
Retrieved 2009-06-06.

↑ http://www.thegrocer.co.uk/articles.aspx?page=articles&ID=199385

↑ 4.0 4.1 [1][dead link]

↑ http://www.cadburyindia.com/brands/choco2.asp
↑ http://www.cadburyindia.com/brands/choco10.asp

↑ http://www.thegrocer.co.uk/articles.aspx?page=articles&ID=202495

↑ http://www.cadburyindia.com/brands/choco3.asp

↑ "Cadbury Challenges the nation". The Grocer. William Reed Business Media.
2010-08-16. http://www.thegrocer.co.uk/articles.aspx?
page=independentarticle&ID=211773. Retrieved 2011-03-07.

↑ "Cadbury launches £6.5m Race Season campaign". Business & Leadership.


Business and Leadership. 2011-03-01.
http://www.businessandleadership.com/marketing/item/28655-cadbury-launches-6-
5m-race/. Retrieved 2011-03-07.

↑ http://www.cadburyindia.com/brands/choco7.asp

↑ "Wispa Gold makes a comeback". Talkingretail.com. 2009-05-29.


http://www.talkingretail.com/products/product-news/12673-wispa-gold-makes-a-
comeback.html. Retrieved 2009-06-06.

↑ http://www.cadburyindia.com/brands/snack1.asp

[hide]v · d · Kraft Foods brands

Arrowroot · Barnum's Animals · Better Cheddars · Cheese


Nips · Cameo · Chips Ahoy! · Claussen · Club Social · Corn
Nuts · Fig Newton · Filipinos · Fudgee-O · Ginger Snaps · Handi-
Nabisco Snacks · Honey Maid · In a Biskit · Jell-O · Lefèvre-Utile (LU) ·
and other Lorna Doone · Mallomars · Nilla · Nutter Butter · Oreo · Peek
snacks Freans · Planters · Premium Crackers · Ritz Crackers ·
SnackWells · Sociables · Social Tea · Stoned Wheat Thins ·
Teddy Grahams · Triscuit · Vegetable Thins · Wheatsworth ·
Wheat Thins

Bassett's · Boost · Bournville · Bournvita · Brunch Bar ·


Buttons · Caramilk · Chomp · Clusters · Creme Egg1 · Creme
Egg Twisted · Crunchie · Curly Wurly · Dairy Milk (Caramel)1 ·
Double Decker · Dream · Fingers · Flake · Freddo · Fry's ·
Cadbury Fudge · Green & Black's · Heroes · Kent · Kréma · Koko · La Pie
qui Chante · Maynards · Milk Tray · Mini Eggs · Moro · Mr. Big ·
Old Gold · Pascall · Picnic · Poulain · Roses · Shots · Snack ·
Star Bar · The Natural Confectionery Company · Time Out ·
Trebor · Turkish Delight · Twirl · Vichy Pastilles · Wispa

Cadbury Adams Bubbaloo · Bubblicious · Certs · Chiclets · Clorets · Dentyne ·


Halls · Hollywood · Malabar · Stimorol · Stride · Sour Patch
and other gum
Kids · Swedish Fish · Trident

Alpen Gold · Baker's Chocolate · Côte d'Or · Daim · Freia · Jet-


Other
Puffed · Kvikk Lunsj · Lacta · Marabou · Milka · Prince Polo ·
confectionery
Terry's · Toblerone · Trakinas

A1 Steak Sauce · Bonox · Bull's-Eye Barbecue Sauce · Grey


Condiments
Poupon · Kraft Mayo · Miracle Whip · Vegemite

Café HAG · Capri Sun2 · Carte Noire · Country Time · Crystal


Coffee
Light · General Foods International · Gevalia · Grand'Mère ·
and other
Jacobs · Kenco · Kool-Aid · Maxwell House · Nabob · Onko ·
beverages
Sanka · Tang · Tassimo · Yuban

Cheese Athenos · Breakstone's · Cheez Whiz · Cool Whip · Cracker


and dairy Barrel · Dairylea · Deluxe · Easy Cheese · Knudsen · Light n’
products Lively · Philadelphia · Polly-O · Singles · Velveeta

Convenience Bagel-fuls · Boca Burger · Calumet · Good Seasons · Kraft


foods Macaroni and Cheese · Lunchables · Oscar Mayer · Royal ·
and baking Shake 'n Bake · Simmenthal · South Beach Living · Stove Top ·
goods Sure-Jell

1In the United States, these products are marketed by The Hershey Company
(but made by Kraft's Cadbury subsidiary) under a prior licensing agreement.
2This brand is owned by Rudolf Wild GmbH and manufactured under license by
Kraft Foods only in the United States, Canada, and Greenland.
Ticker: NYSE: KFT · Kraft Foods Corporate · Kraft Media Center
Retrieved from "http://mediawikifr.dp.teoma.com/wiki/List_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 Europe’s Food & Drink Markets

Kraft Foods and Cadbury


in Western Europe’s Food & Drink Markets
• Would an acquisition by Kraft Foods of Cadbury make sense from an end-market point of
view?
• To what extent would market dominance in selected product and country markets result?
• Matching known product areas like Sweet and Chocolate Confectionery is one thing, but
what about myriad other activities?
• Will later consolidation of the combined companies provoke further merger & acquisition
activity?

Référencement internet Gratuit


This report Kraft Food Cadbury Profile at fft.com
Kraft Foods and Cadburyin Western Europe’s Food & Drink Markets

• Would an acquisition by Kraft Foods of Cadbury make sense from an


end-market point of view?

• To what extent would market dominance in selected product and


country markets result?

• Matching known product areas like Sweet and Chocolate


Confectionery is one thing, but what about myriad other activities?

• Will later consolidation of the combined companies provoke further


merger & acquisition activity?

Report Description

Drawing on FFT’s extensive food & 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
Product and country market shares.
. Dominance:

2 Estimated final retail and foodservice values (see #


Sales Turnover:
. note next page).

3 Country Geographic distribution and size among 16 West


. Presence: 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):
Cadbury price strategy hits market share
By 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 & Black's 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 group's 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 year's gorilla drumming to Phil
Collins, which became a cult hit.

But the flooding of its Sheffield factory in last summer's downpours - where Bassett's 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 group's strong
performance in emerging markets such as India and Russia.

The group's 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 world's largest confectionery business, with number one or number two
positions in 20 of the world's 50 largest confectionery markets.
Marketing Mix of CADBURY - December 4th, 2010

Cadbury plc is a British confectionery company, the industry's 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
index's 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 U.S. beverage unit, which has been renamed Dr
Pepper Snapple Group Inc.[5]

MARKETING MIX
THE 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 “FOUR P’S” DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE
MARKETPLACE.
PRODUCT
PRICE
PLACE
PROMOTION

PRODUCT
PRODUCT VARIANTS
CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ. CHOCOLATE CONFECTIONERY, MILK
FOOD DRINKS, CANDY AND GUM CATEGORY
CADBURY DAIRY MILK, 5 STAR, PERK, ÉCLAIRS AND CELEBRATIONS
CANDY CATEGORY HALLS
BUBBLE GUM BRAND BUBBALOO
BOURNVITA - THE LEADING MALTED FOOD DRINK (MFD)
PRODUCT INNOVATIONS
�5 STAR:
CONSUMER 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 &
INTRODUCED AS 5 STAR CRUNCHY
� PERK:
PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLE’S MUNCH.
PERK HAD BEEN UNDER FIRE FROM NESTLE’S DEADLY DUO OF KITKAT AND MUNCH, BUT AFTER THE
RELAUNCH, ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKAT’S. 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.

� HEROES:
PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURY’S
BRANDS.HEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS
IN A SINGLEOUTER CASE.
PACKAGING
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL.
CADBURY’S 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
FROM
IMPROPER STORAGE. CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW
MACHINERY FOR THE IMPROVED PACKAGING.

PRICE
THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
TODAY, CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT: CDM, PERK, 5 STAR AND GEMS — AND THE
FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU.
“THIS IS A POTENT PRICE POINT IN INDIA, BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY
LOW,” IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
CADBURY 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 FACE.
HIRES AT KEARNEY TO CURB COSTS
CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO
CONTROL COSTS IN SEVERAL AREAS, INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING.
THE 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 STUDIED.
EARNINGS SENSITIVITY FACTORS
COCOA 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 & 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 MARKET.
PLACE
PLANT LOCATIONS
IN 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 MUMBAI.THESE
FACTORIES CHURN OUT CLOSE TO 8,000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTION
CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY, UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS AND
DETERGENTS, WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK. 90% OF CHOCOLATE PRODUCTS
ARE SOLD
DIRECTLY TO RETAILERS.
CADBURY'S DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450,000
RETAILERS
TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES, CADBURY IS
SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS – ONE FOR CORE BUSINESS & OTHER FOR MASS
MARKETS
NATURE OF RETAIL OUTLET
CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES, GIFT STORES, MEDICAL STORES,
CANTEENS,
PAN-BIDI STORES, BAKERIES, SWEET SHOPS ETC. THIS IS TRUE FOR CHOCOLATES ALSO. THE SPACE
ALLOCATED FOR
THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP. OF THE SPACE
ALLOCATED FOR
CHOCOLATES, CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS.
PROMOTION
ADVERTISEMENTS
THE 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 ZINTA’S ANGELIC DIMPLES LAID THE
FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGER’S FAVORITE SNACK. AFTER THIS
CAMPAIGN,
PERK’S SALE SURGED

THE BIG ‘B’ FACTOR


THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN. CADBURY
APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS.
WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS, KIT KAT IS SELLING 'RITUALISTIC' BREAK
TO
TEENAGERS/ YOUNG ADULTS. THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS
DIFFERENT
CHANNELS.

Cadbury customer marketing strategy


questioned

• ShareThis
Posted 29 March 2011 - 5:00pm

Cadbury is rethinking its Spots v Stripes customer marketing strategy, it has been claimed, amid
suggestions its attempts to publicise the confectioner's 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 firm.
It recently put its factory at Keynsham near Bristol up for sale at a price of £50 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 1850’s 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
– David Morris who leads the team developing the idea says “… we will really develop that heritage of
the brand - from fireplaces and fireside chairs to traditional English afternoon teas.”

Much as John Cadbury brought chocolate drinks to the masses in the 1850’s, they also plan to make
afternoon tea a more affordable luxury than the version currently offered by luxury hotels, with a price
of £14.50. 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 – 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.

Cadbury's 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 world's 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 world’s 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 share


By 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 & Black's 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 group's
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 year's gorilla drumming to Phil Collins, which became a cult hit.
But the flooding of its Sheffield factory in last summer's downpours - where Bassett's 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 group's strong performance in emerging markets such as India
and Russia.
The group's 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 world's largest confectionery
business, with number one or number two positions in 20 of the world's 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 and/or devoted their
time to missions of social reform.
By 1842 John was selling 11 kinds of cocoa
and 16 kinds of drinking chocolate. Soon
John’s 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
John’s failing health and the death of his wife.
They left the business to John's sons George
and Richard. John devoted the rest of his life to
social work and died in 1889.
Packing room at Cadbury's Bournville factory..
George and Richard continued to expand the
product line, and by 1864, they were pulling a
profit. Cadbury’s 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 Cadbury’s 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 2,600 people and
Cadbury was incorporated as a limited company.
During World War I, more than 2,000 of Cadbury’s 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 & 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. John’s 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 70,000 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 – Cadbury Cocoa Essence


1875 – Cadbury Easter Eggs
1897 – Cadbury Milk Chocolate
1905 – Cadbury Dairy Milk
1908 – Cadbury Bournville
Chocolate
1915 – Cadbury Milk Tray
1920 – Cadbury Flake
1923 – Cadbury Crème Eggs
1929 – Cadbury Crunchie
1938 – Cadbury Roses
1948 – Cadbury Fudge
1968 – Cadbury Picnic
1960 – Cadbury Buttons
1970 – Cadbury Curly Wurly
1983 – Cadbury Wispa
1985 – Cadbury Boost
1987 – Cadbury Twirl
1992 – Cadbury Timeout
1996 – Cadbury Fuse
2001 – Cadbury Brunchbar, Dream
& SnowFlake
Interesting Facts about Cadbury
� Cadbury was the first company to include pictures instead of printed text on chocolate boxes.

� George Cadbury didn’t 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, Cadbury's tokens,
which came with packs of cocoa, could be redeemed for lamps, kettles and saucepans.
� So many children joined Cadbury’s Cococub Club that it had 300,000 members in 1936.
� Cadbury’s World Visitor Center opened in 1990, welcoming 400,000 visitors in its first year.
� Cadbury launched a Get Active program in 2003, helping 10,000 teachers get in shape.

Cadbury India
BSE: 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) U.K., 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
Company's corporate name.

- The Company was grated a letter of intent for the manufacture of


6,000 tonnes per annum of processed vegetable oils/fats (cocoa
butter
substitute) wholly for export.

- The Company also received a letter of intent for setting up


manufacturing facilities in Jammu & Kashmir for the production of
apple
juice concentrate. Approval of Government was received for
technical
collaboration with Bulmer's of the U.K.

- Shares subdivided on 22.03.1976, 13,60,905 bonus shares issued in


prop. 10.50:1 on 28.04.1977. 9,93,677 shares issued (prem. Re.1 per
shares) 1,43,677 shares reserved for allotment to resident Indian
directors their friends and employees and 8,50,000 shares offered to
the public in July.

1978

- In December, CSOL disinvested out of their holdings in the


Company,
2,90,515 equity shares of Rs 10 each through an offer for sale at a
premium of Rs 3.50 per share as follows (i) 1,30,515 shares to V.
Mallya and M.L. Apte and (ii) 1,60,000 shares to resident Indian
shareholders as rights in proportion 1:10 out of which about 60,000
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, 22,92,000 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.

- 5,15,808 shares issues (prem. Rs 2.50 per share) in May 1979:


70,000
shares to UTI and 40,000 shares each to LIC and GIC; 44,760 shares
to
Indian directors and employees of the Company and 3,21,048 shares as
rights to resident Indian shareholders in prop. 1:4.

1981

- The Company received a certificate to manufacture 2,200 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

- 12,00,000 bonus shares issued in prop. 2:5.

- 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.

- 42,00,000 bonus shares issued in prop. 1:1.

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 year's day.

- In order to meet the growing demand for the Company's 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 manufactured/marketed by the Company.

1993

- With effect from 18th July, the Company's Ice Cream business
comprising manufacturing arrangements with two well known brands
Dollops & Lopstop was transferred to Brooke Bond India Ltd. for a
consideration of Rs 1062.65 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 16,80,000 equity


shares
of Rs 10 each for cash at a premium of Rs 90 per share on Rights
basis
in the proportion 1:5 (all were taken up). Allotment of 105 shares
of
these were kept in abeyance based on Court orders.

- 16,80,000 rights shares allotted (prem. Rs 90 per share prop.


1:5).
Another 28,000 shares allotted to employees, etc. (prem. Rs 90 per
share) in 1992-93. 22,92,000 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'.

- 74,40,000 bonus shares issued in prop. 3:5.

1997

- Cadbury India Ltd has announced rights issue of equity shares at a


price of Rs.150 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.

- 39,61,473 No. of equity shares of Rs 10 each at a premium of Rs


140
per share allotted on rights basis in prop. 1:5.

- 32 shares kept in abeyance issued.

1998

- Cadbury's 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, Cadbury's entire range of products were introduced


in
Bangladesh. Its new wafer product, Perk, was launched in Sep.'95,
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
- Cadbury's 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 39.34% 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.

-Cadbury's market share has dipped to 70.7% 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.

-Cadbury's buy out of pfizer's confectionary brand is expected to


set a strong
base in the oral gratification category

2003

-Cadbury India launches Cadbury's Heroes, which is a blend of


company's
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 1
countries, Kraft Foods had 2010 revenue of $49.2 billion, more than half of which was earn
outside North America. Eleven of the company’s 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 & wellness and sustainability, Kraft
Foods is a member of the Dow Jones Industrial Average, Standard & Poor's 500, Dow Jones
Sustainability Index and Ethibel Sustainability Index.For more information, visit
www.kraftfoodscompany.com and www.facebook.com/kraftfoodscorporate.
Heritage: We have come a long way since J.L Kraft started selling cheese from a horse draw
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 time.
Some 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 Cadbury’s board, Kraft Foods has sweetened its bid for the UK confectioner to 500
pence per share in cash and 0.1874 Kraft shares for each Cadbury share (up from its previous offer of
300 pence per share in cash and 0.2589 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 13.0x 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 ¦ Fair value uncertainty: Medium ¦ Economic moat: Wide

Thesis
(Last updated 19/01/10)

Although we have been encouraged by Cadbury's efforts to trim more fat from its cost structure, the
global confectionery firm's 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 10.5% 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 $4.2 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 Cadbury's 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 company's low-double-digit operating
margins trail the midteens to high-teens margins enjoyed by other confectionery stalwarts.

Despite posting impressive top-line results, Cadbury's inability to improve its margins has been a
thorn in the side of the firm's 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 Mars/Wrigley 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 firm's sales up from 20% currently.

Valuation
We're raising our fair value estimate to 840p per share from 703p to reflect the offer Kraft has made
for the firm's shares. With the blessing of Cadbury's board, Kraft sweetened its bid for Cadbury to
500p per share in cash and 0.1874 Kraft shares for each Cadbury share (up from its previous offer of
300p per share in cash and 0.2589 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 Cadbury’s
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 13.0 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 Kraft's bid for Cadbury somehow falls through, Cadbury's share price would likely decline, and we
would lower our fair value estimate to a stand-alone valuation. Cadbury's ongoing restructuring efforts
may prove to be disruptive to the firm's operations. Further, Cadbury's 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 & 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
Stitzer's 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 management's 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 Cadbury's 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: We're not concerned by Cadbury's debt levels, as the firm operates with nearly
£1.4 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 & Black's, 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: Cadbury's 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 10.5% 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 Cadbury's confectionery sales result from faster-growing emerging markets.

Bears Say
1. Given the economic weakness in Cadbury's 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 Cadbury's 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 Kraft's bid for Cadbury somehow falls through, Cadbury's share price would likely decline, and we
would lower our fair value estimate to a stand-alone valuation

Cadbury channels, access and distribution levels


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Businesss Research Papers > Marketing

“ Marketing Principles: Trading and Exchange CADBURY: Channels, Access and Distribution Levels Purpose of a network and
marketing channel ¡ Value network is a system of partnerships and alliances that a firm creates to source, augment, and deliver its
offerings ¡ 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 ¡ Their official website informs buyers about all of Cadbury's products and services
including information about products, recipes, health and nutrition, sponsorship, fundraising etc. ¡ 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 ¡ 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

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