BIBLIOGRAPHY JOURNALISMAMY PENFOLD

CHOCOLATE FEATURE

‘A KRAFTY CHANGE IN CADBURY’

01.08.16http://www.independent.co.uk/news/uk/home-news/cadbury-heiress-felicity-loudon-seeks-sweet-revenge-on-kraft-7720690.html

01.08.16http://www.independent.co.uk/news/uk/home-news/creme-egg-easter-cadbury-mondelez-recipe-sales-a6950221.html

03.08.16 http://news.bbc.co.uk/1/hi/england/8467489.stm

03.08.16http://www.bbc.co.uk/news/uk-england-birmingham-35027160

03.08.16http://www.bbc.co.uk/newsbeat/article/30780010/cadburys-creme-egg-outrage-and-other-ruined-recipes

05.08.16http://news.bbc.co.uk/1/hi/business/8507780.stm

05.08.16http://www.telegraph.co.uk/food-and-drink/features/the-many-ways-cadbury-is-losing-its-magic/

A KRAFTY CHANGE IN CADBURY

5 August 2016

6 years on and Cadbury owner Mondelēz has much to answer for the changes made to the Birmingham-based business’ chocolate treats.

Whether you are mourning the absence of Bournville from your Heroes tub, boycotting the new Crème Egg or still feeling queasy from the Cadbury meets Philadelphia fiasco; the British adversity to change has been challenged in recent years by the American takeover of the Confectionary icon.

Bought out by US food giant, Kraft in 2010 for a reported sum nearing £12bn, jobs have since been lost, tax has been evaded and chocolate sizes are surely getting smaller.

The food company, presently known as Mondelez, is the second largest in the world, only behind Nestle and own the well-known brands of Toblerone and Hersheys.

Controversy soon erupted in 2011 when the Sommerdale factory near Bristol was closed down. Despite public statements from Kraft executives, including Nick Bunker, head of Operations who told the BBC, retaining the plant was a ‘sincere’ priority, they failed to keep their word.

The Decision to close the factory resulted in 400 hundred job losses and came under fire from the union, Unite who represent Cadbury workers. Indeed, Unite member, Jennie Formby criticised the company’s false intentions to preserve Sommerdale as a ‘cruel manipulation.’

Further contention over the Sommerdale stitch up was brought to light when a new Polish plant was revealed to have been underway before redundancies were announced. From his market research, Professor David Bailey from Coventry University Business School explains that Cadbury’s plans to relocate production abroad had been underway from as early 2007. The analyst suggests it was simply ‘not credible’ to assure the sustainability of the Bristol-based factory while the Polish project was so advanced. The smaller Cadbury bars like the 47g ‘Marvelous Creations’ are now manufactured in Poland.

Most recent in the field of public indignation comes from the alterations affecting the recipes of the chocolatey products. In 2015 Cadbury announced changes to the seasonal gooey delight that is Crème Egg, now being made out of, ‘Standard, traditional Cadbury milk chocolate.’

As a result, this has seen a financial loss of over £6 million in sales. Furthermore, YouGov pollsters have discovered a change in trends. Up until the last two years, customer satisfaction with Crème Egg was growing but has now fallen by 15.4% since the controversial new recipe.

A Short History of Cadbury

1824 John Cadbury opens first shop in Bull Street, Birmingham

1854 Granted Royal Warrant as manufacturers of chocolate to Queen Victoria

1905 Cadbury Dairy Milk first produced 1921 Opens first oversees factory in Tasmania 2006 Officially the largest and most successful

confectionary company in the world 2010 American cheese company, Kraft, buy Cadbury for

£11.5bn

Similarily, Cadbury’s Fruit and Nut bar have changed their use of raisins to sultanas. Much to the contention of consumers, fans have argued that the cheaper option of sultanas suggests the new owners are placing economic agendas above customer satisfaction.

Elsewhere, Cadbury’s entrepreneurism into making Dairy Milk Fair Trade in 2009 has since failed to extend its ethical trading deal to more of their products. For example, the 2016 Easter eggs weren’t Fair Trade either. However, whilst Mondelez has their own sustainability programme called ‘Cooca Life’ which has invested $400 million into improving the working conditions for cocoa farmers; it still ignores fair trading deals for sourcing ingredients like nuts and sugar.

However, despite disturbances to the old British-led order of Cadbury, profits are steady year on year. In 2014 Cadbury made approximately £2 billion in profits but a tax scandal also broke out. Mondelez failed to pay corporation tax of around £96 million, by utilising legitimate avenues of avoidance. Instead, the company used their revenue to offset its debts of a reported £8.2 billion sum secured as a bond on the Channel Islands stock exchange. This was then recorded as losses against profits. Complicated, conditional corruption?

In all, Cadbury still leads as Britain’s favourite confectioner and 100g chocolate bars on perpetual £1 offers found in superstores to WH Smiths are not so easy to resist. Perhaps it’s time Cadbury diversified from its provincial British affiliation onto the global giant Mondelez. But to others, it’s a glass and a half too far.