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Cadbury plc
Type Industry Founded Headquarters Products Revenue Operating income Net income Employees Parent Website
Subsidiary of Kraft Foods Confectionery 1824 Uxbridge, London, United Kingdom See list of Cadbury products GB5,384 million (2008) GB388 million (2008) GB364 million (2008) 71,657 (2008)[1] Kraft Foods www.cadbury.co.uk
Cadbury plc was 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]
Contents
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1.3 Merger with Schweppes 1.4 Demerger 1.5 Recent developments 1.6 Kraft buyout 2 Operations o 2.1 United Kingdom o 2.2 Ireland o 2.3 United States o 2.4 Australia and New Zealand o 2.5 India 3 Executive compensation 4 Accounting 5 Products 6 Health and safety o 6.1 2006 Salmonella scare o 6.2 2007 recalls o 6.3 2008 o 6.4 2009 Hydrogenation 7 Head office 8 See also 9 References
o o o o
10 External links
[edit] History
[edit] Early history
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'.[6] The two brothers opened an office in London and in 1854 received the Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria. Around this time in the 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. Noticing the development of the Birmingham West Suburban Railway south along the path of the Worcester and Birmingham Canal, 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. Located right next to the new Stirchley Road railway station, itself directly opposite the canal, they renamed the Bournbrook estate to Bournville and opened the Bournville factory in 1879. In 1893, George Cadbury bought 120 acres (49 ha) of land close to the works and planned, at his own expense, a model village which would 'alleviate the evils of modern more cramped living conditions'. By 1900 the estate included 313 cottages and houses set on 330 acres (130 ha) of land. As the Cadbury family were Quakers there were no pubs in the estate;[7] in fact, it was their Quaker beliefs that first led them to sell tea, coffee and cocoa as alternatives to alcohol.[8] The history of the company, from its origins up to modern times, has been charted in the recent book by John Bradley [9]
Somerdale Factory from 1919 merger with Fry's In 1905, Cadbury's launched its Dairy Milk bar, with a higher proportion of milk than previous chocolate bars, and it became the company's best selling product by 1913. Fruit and Nut was introduced as part of the Dairy Milk line in 1928, soon followed by Whole Nut in 1933. By this point, Cadbury's was the brand leader in the United Kingdom. These were accompanied by several other products: Flake (1920), Cream-filled eggs (1923), Crunchie (1929) and Roses (1938).[10] Cadbury's Milk Tray was first produced in 1915 and continued in production throughout the remainder of the First World War. More than 2,000 of Cadbury's male employees joined the Armed Forces and to support the war effort, Cadbury provided clothing, books and chocolate to soldiers. After the war, the Bournville factory was redeveloped and mass production began in earnest. In 1918, Cadbury opened their first overseas factory in Hobart, Tasmania and in 1919 undertook a merger with J. S. Fry & Sons, another chocolate manufacturer which saw the integration of well-known
brands such as Fry's Chocolate Cream and Fry's Turkish Delight.[6] During World War II, parts of the Bournville factory were turned over to war work, producing milling machines and seats for fighter aircraft. Workers ploughed football fields in which to plant crops. As chocolate was regarded as an essential food it was placed under government supervision for the entire war. The wartime rationing of chocolate ended in 1949, and normal production resumed. Cadbury subsequently built new factories and had an increasing demand for their products.[6]
The Cadbury Schweppes logo used until the demerger in 2008 Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in 1969.[11] Cadbury Schweppes went on to acquire Sunkist, Canada Dry, Typhoo Tea and more. In the US, Schweppes Beverages was created and the manufacture of Cadbury confectionery brands were licensed to Hershey's. Snapple, Mistic and Stewart's (formerly Cable Car Beverage) were sold by Triarc to Cadbury Schweppes in 2000 for $1.45 billion.[12] In October of that same year, Cadbury Schweppes purchased Royal Crown from Triarc.[13]
[edit] Demerger
In March 2007, it was revealed that Cadbury Schweppes was planning to split its business into two separate entities: one focusing on its main chocolate and confectionery market; the other on its US drinks business.[14] The demerger took effect on 2 May 2008, with the drinks business becoming Dr. Pepper Snapple Group Inc.[5] In December 2008 it was announced that Cadbury was to sell its Australian beverage unit to Asahi Breweries.[15]
Consumer backlash was significant from environmentalists and chocolate lovers. By August 2009, the company announced that it was reverting to the use of cocoa butter in New Zealand.[18] In addition, they would source cocoa beans through Fair Trade channels. [19] In January 2010 prospective buyer Kraft pledged to honour Cadbury's commitment.[20]
move, suggesting that they felt betrayed and as if they have been "sacked twice.".[43] On 22 April 2010, Phil Rumbol, the man behind the famous Gorilla advertisement, is planning to leave the Cadbury company in July following Kraft's takeover.[44] In June 2010 the Polish division, Cadbury-Wedel was sold to Lotte of Japan. The European Commission made the sale a condition of the Kraft takeover. As part of the deal Kraft will keep the Cadbury, Hall's and other brands along with two plants in Skarbimierz. Lotte will take over the plant in Warsaw along with the E Wedel brand.[45]
[edit] Operations
[edit] United Kingdom
Main article: Cadbury UK Cadbury plc also owns Trebor Bassett, Fry's, Maynards and Halls. The confectionery business in the UK is called Cadbury UK (formerly Cadbury Trebor Bassett) and, as of August 2004, had eight factories and 3,000 staff in the UK. Biscuits bearing the Cadbury brand, such as Cadbury Fingers, are produced under licence by Burton's Foods. Ice cream based on Cadbury products, like 99 Flake, is made under licence by Frederick's Dairies. Cadbury cakes and chocolate spread are manufactured under licence by Premier Foods, but the cakes were originally part of Cadbury Foods Ltd with factories at Blackpole in Worcester and Moreton on the Wirral with distribution depots throughout the UK.
[edit] Ireland
Main article: Cadbury Ireland Cadbury Ireland Limited is a confectionery company in Ireland based in Coolock in Dublin. Cadbury's opened their first Irish factory in Ossary RD., Dublin in 1933. More than 250 million worth of Cadbury chocolate is produced in Ireland, is exported every year, bringing Ireland valuable earnings from abroad.
[edit] India
Cadbury began its operations in India in 1948 by importing chocolates. It now has manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, Cadbury has worked with the Kerala Agriculture University to undertake cocoa research.[51]
[edit] Accounting
In July 2007, Cadbury Schweppes announced that it would be outsourcing its transactional accounting and order capture functions to Shared Business Services (SBS) centres run by a company called Genpact, (a businesses services provider) in India, China, and Romania. This was to affect all business units and be associated with U.S. and UK functions being transferred to India by the end of 2007, with all units transferred by mid-2009. Depending on the success of this move, other accounting Human Resources functions may follow. This development is likely to lead to the loss of several hundred jobs worldwide, but also to several hundred jobs being created, at lower salaries commensurate with wages paid in developing countries.[53]
[edit] Products
Main article: List of Cadbury products
Cadbury plc manufactures chocolates and sweets such as the popular Cadbury Dairy Milk. Notable product introductions include:
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 (richer, finer milk chocolate), Wispa Gold and Bliss
An investigation being carried out at that time by Herefordshire Council led to a further six charges being brought.[55] The company pleaded guilty to all nine charges,[57][58] and was fined 1 million pounds at Birmingham Crown Courtthe sentencing of both cases was brought together.[59] Analysts have said the fine is not material to the group, with mitigating factors limiting the fine being that the company quickly admitted its guilt and said it had been mistaken that the infection did not pose a threat to health.[59]
[edit] 2008
On 29 September 2008 Cadbury withdrew all of its 11 chocolate products made in its three Beijing factories, on suspicion of contamination with melamine. The recall affected the mainland China markets, Taiwan, Hong Kong and Australia.[62] Products recalled included Dark Chocolate, a number of products in the 'Dairy Milk' range and Chocolate clairs.[63]
Big Chocolate Cadbury World, Birmingham Cadbury World, Dunedin Gorilla (advertisement) Halls (cough drop) Stimorol Eyebrows (advertisement)
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Retrieved from "http://en.wikipedia.org/wiki/Cadbury_plc" Categories: Kraft Foods | Companies established in 1824 | Companies formerly listed on the London Stock Exchange | Chocolatiers | Companies based in Hillingdon | Confectionery companies of the United Kingdom | Confectionery companies of the United States | Food manufacturers of the United Kingdom | Beverage companies of the United Kingdom | British brands | Cadbury | Royal Warrant holders Hidden categories: All articles with dead external links | Articles with dead external links from January 2010 | Articles with dead external links from October 2010
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