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Kraft/Cadbury

January 19, 2010

Nestle and Kraft are like the strangling weeds of the food industry, destroying all smaller businesses in their path, and strangling customers and suppliers. I  couldn’t give a fuck about an American company buying Cadburys.

Kraft’s national origin became irrelevant years ago-they are bigger than a country. Anyone who thinks the problem with this merger, is one of national identity, and a british brand, is deeply misguided.

This merger will cost at the very least an entire factory’s workforce, workforce from the head office. It will eventually mean that Cadburys suppliers, and customers will be squeezed, as will their employees. Concessions will be agreed as part of the takeover, but their importance will become irrelevent once it is completed, and after the timeframe agreed elapses,  Cadburys as a company, including the 60’000 employees, become no more relevant than any other of the thousands of brands, hundreds of thousands of suppliers, and millions of employees under the Kraft umbrella. They may no longer be part of Altria, with Philip Morris, but they are by no means benign. The bill for this merger, the unemployment benefit, the cost of withdrawing a dominating employer from a community, all picked up by the taxpayer. The merger, funded by RBS, whose freeze on lending thawed enough for Kraft, but stays stuck frozen for the small business whose taxes have protected  their bond deposit base.

Quick quiz question. Do you actually know how many companies manufacture the bewildering range of products you ‘choose’ from in your local supermarket? Do you think it is more than 5? More than 10? You might be surprised if you checked.

Framing of the opposition to this takeover, as some kind of nostalgia for Dairy Milk, was absolute genius. I might go to William Hill, and put a bet on when Nestle and Kraft merge….

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5 comments

  1. […] This post was mentioned on Twitter by Lisa, May Giardina. May Giardina said: RT @slummymummy1: Blog post- https://deeplyflawedbuttrying.wordpress.com/2010/01/19/kraftcadbury/ Kraft/Cadbury. […]


  2. Social comments and analytics for this post…

    This post was mentioned on Twitter by slummymummy1: Blog post- https://deeplyflawedbuttrying.wordpress.com/2010/01/19/kraftcadbury/ Kraft/Cadbury….


  3. i listened to a bit of PM on R4 today and Robert Peston interviewed the chairman of Cadburys.

    with regards to Kraft not culling to many jobs and keeping staff from the better run company (cadburys) and them influencing how Kraft is run he was saying a lot of ‘hopefully’, ‘I feel’ and similar trying to give the impression that Kraft give a shit and won’t lay everyone off.


    • Kraft will have signed up to a deal, where they agree to protect certain sites, and certain numbers of jobs for a specified time. They will have haggled over that time limit, in the same way they haggled about the price(they severely undervalued Cadbury). Kraft are also accomplished at taking over brands, which have national treasure status, and do the PR v well.
      When they need to refocus their brand, or want to change their goals, and they are out of the contract they have agreed- Cadburys are no more important than any of their other brand portfolio. Incidentally, finding a comprehensive list of ALL Krafts brands is very difficult- they use many methods to keep their brand ownership low key- using subsidiarys/operations in other countries, and you only have to google Kraft, and a term which relates to this issue- to see how quickly they will drop or squeeze a brand, when their strategic aims demand it. Their first stated priority is to save $675m in annual running costs for Cadbury.
      THeir initial focus, as with any other merger, will be to increase efficiency, and that means job losses.
      They may appear to give a fuck, but they don’t. Cadbury is only of use in its current form, for as long as it suits the overall strategic planning for Kraft, and when that plan changes, or the climate in which they operate changes- Cadburys are unimportant.
      They are so big, that they are accountable really, to noone. The govt cant tell companies that large what to do- because generally, the power that companies like Kraft have, over our economy is vast. They affect our manufacturing, agricultural, retail, and food processing environments, as well as using vast marketing power to promote food which is of inherently poor nutritional quality. The fact that they are a food company, means that people see them as benign.
      Our supermarkets stock very few companies products, and mergers like this decrease the customers choice irrevocably. Kraft and Nestle already provide a startling amount of the products I can ‘choose’ from, I absolutely oppose ‘mergers’ like this one, and the consequences for us as a society, of organisations being so big, are already being keenly felt.


      • I agree with you about Kraft, I’m under no illusions about that.

        My comment didn’t really come out how it was supposed to, it was more about the chairman of Cadbury’s trying to calm the fears of his employees with soothing sounds about Kraft knowing what good workers they are and they would be daft to lay them loads of them off, but loading it all with little words so that he couldn’t be called on it when the axe falls.



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