There has been a lot of hand-wringing in the UK about the future of Cadbury under Kraft Foods, which is currently raising debt to fund its $19bn acquisition of the chocolate maker.
It is understandable that employees, in particular, are uncertain about their jobs; it is also clear that Cadbury is a name that resonates publicly in a way that glass maker Pilkington or even BAA, the airports operator, both of whom were taken over by foreign rivals, did not. But there are some simple truths that should not be drowned in all the emotion.
Despite its Quaker origins, Cadbury has long been a commercial enterprise, run for profit. It is the current management, after all, that decided to close an iconic plant in Bristol with the loss of 400 jobs and Kraft that is promising to review the decision and “invest in British manufacturing jobs.
Second, Cadbury is already much more international and much less British than meets the eye. Only a fifth of sales come from the UK and Ireland. Its chief executive is an American and its top management committee is made up of continental Europeans, Indians and Americans alongside Brits.
Nor should you jump to the conclusion that Kraft, the home of cheap, processed cheese, has nothing to contribute to how Cadbury is run – or will necessarily pull investment out of the UK.
When Spain’s Santander bought Abbey a few years ago, there was widespread scepticism about what the Spanish could teach the British about banking. Yet the purchase has been an undoubted success. Santander’s IT infrastructure, processes and common sense have indeed proved superior to those it inherited at Abbey and the Spanish bank has gone on to roll up other UK financial brands, creating jobs along the way. Why shouldn’t Kraft be able to do the same?
Related links:
Latest news on Kraft-Cadbury FT
50 reasons to fight Kraft Dan Roberts, The Guardian
Cadbury: banks are the real winners Robert Peston, BBC
From corner shop to Cadbury, the global brand FT interactive timeline
Should we care about the resignation of Hector Sants as chief executive of the UK’s Financial Services Authority?
