Manufacturers
When did Kraft acquire Cadbury?
Chocolate
Owlerton Kraft Foods Mondelēz International Kraft Foods Mondelēz International
Owlerton-George_Bassett_&_Co._Ltd Kraft_Foods-Purchase_of_Cadbury Mondelēz_International-Purchase_of_Cadbury Kraft_Foods-Acquisition_fallout Mondelēz_International-Acquisition_fallout
Local firms. George Bassett & Co. Ltd. The longest established and best known firm in Owlerton is the George Bassett & Co. Ltd sweet factory, made world-famous by the manufacture of Liquorice Allsorts. The firm was established in Sheffield in 1842 but did not come to Owlerton until 1934 when Bassett's son in law Samuel Meggit Johnson built a large factory on Beulah Road (). The factory was enlarged in the inter-war period as new products such as Jelly Babies, Wine Gums and Liquorice Novelties were added to the range. In April 1939 a huge fire damaged the building severely as hundreds of tons of sugar burned with ferocity. In 1989 Bassetts was purchased by the Cadbury Schweppes group and became part of its confectionery subsidiary Cadbury Trebor Bassett. On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal whereby Kraft would purchase Cadbury for £8.40 per share, valuing Cadbury at £11.5bn. 
On September 7, 2009, Kraft made a £10.2 billion takeover offer for the long-established British confectionery group Cadbury, makers of Dairy Milk and Bournville chocolate. On November 9, 2009 Kraft's £9.8bn takeover bid was rejected by Cadbury. Cadbury stated that the takeover bid was a "derisory" offer. Kraft renewed the offer under the same terms on December 4, 2009. The offer generated significant political and public opposition in the United Kingdom and abroad, even leading to calls for the government to implement a policy of economic protectionism in cases of takeovers of large companies. On January 19, 2010, Cadbury finally approved a revised offer from Kraft, valuing the confectionery business at $19.5 billion (£11.5 billion). The funding for the takeover was partially provided by the Royal Bank of Scotland, the British part-state-owned bank. The Cadbury purchase was part of the long-term strategy of Irene Rosenfeld, CEO and Kraft Chairman since March 2007, who developed a three-year turnaround plan designed to drive the profitable growth of Kraft Foods. Rosenfeld wanted to develop new markets and expand product range when she assumed the role of chairman. It was assumed that the purchase of Cadbury would help Kraft products develop in new markets such as Brazil and India because of Cadbury’s current strong presence in those markets. India is one of its most resilient markets with sales growth of 20% and profits growing at 30% in a competitive market. Kraft believed the Cadbury purchase was also necessary because of the likelihood of Nestle and Hershey joining together. Kraft also believed it could squeeze savings of at least $675m annually by the end of the third year. Irene Rosenfeld saw the Kraft Cadbury merger as the "logical next step in our transformation toward a high-growth, higher-margin company." She also justified the merger in order to build a "global powerhouse in snacks, confectionery and quick meals. "Following the purchase of Cadbury, Kraft commanded 14.8% of the global candy and gum market. Kraft argued that it could take advantage of the Cadbury distribution in developing markets of India, Brazil and Mexico. As incomes rose in these developing nations, Kraft hoped that products such as Oreo would become impulse buys for children. Mars, Inc. is second in the confectionery market with 14.6% share, followed by Nestle with 7.8%. At the time of the purchase, the chocolate and sugar industry had been growing rapidly at 15% over the previous three years and was valued at $113 billion. The purchase of Cadbury was considered strange because they did not have a strong foothold on the confectionery market, but at the time Kraft noted their production of confectionery foods like Toblerone and candy foods like Oreo. Cadbury also owned popular gum brands such as Stride, Trident, Dentyne, and Chiclets. Roger Carr, chairman of Cadbury, discussed his approval of the takeover by Kraft by saying, "We believe the offer represents good value for Cadbury shareholders and are pleased with the commitment that Kraft Foods has made to our heritage, values and people throughout the world."
On September 7, 2009, Kraft made a £10.2 billion takeover offer for the long-established British confectionery group Cadbury, makers of Dairy Milk and Bournville chocolate. On November 9, 2009 Kraft's £9.8bn takeover bid was rejected by Cadbury. Cadbury stated that the takeover bid was a "derisory" offer. Kraft renewed the offer under the same terms on December 4, 2009. The offer generated significant political and public opposition in the United Kingdom and abroad, even leading to calls for the government to implement a policy of economic protectionism in cases of takeovers of large companies. On January 19, 2010, Cadbury finally approved a revised offer from Kraft, valuing the confectionery business at $19.5 billion (£11.5 billion). The funding for the takeover was partially provided by the Royal Bank of Scotland, the British part-state-owned bank. The Cadbury purchase was part of the long-term strategy of Irene Rosenfeld, CEO and Kraft Chairman since March 2007, who developed a three-year turnaround plan designed to drive the profitable growth of Kraft Foods. Rosenfeld wanted to develop new markets and expand product range when she assumed the role of chairman. It was assumed that the purchase of Cadbury would help Kraft products develop in new markets such as Brazil and India because of Cadbury’s current strong presence in those markets. India is one of its most resilient markets with sales growth of 20% and profits growing at 30% in a competitive market. Kraft believed the Cadbury purchase was also necessary because of the likelihood of Nestle and Hershey joining together. Kraft also believed it could squeeze savings of at least $675m annually by the end of the third year. Irene Rosenfeld saw the Kraft Cadbury merger as the "logical next step in our transformation toward a high-growth, higher-margin company." She also justified the merger in order to build a "global powerhouse in snacks, confectionery and quick meals. "Following the purchase of Cadbury, Kraft commanded 14.8% of the global candy and gum market. Kraft argued that it could take advantage of the Cadbury distribution in developing markets of India, Brazil and Mexico. As incomes rose in these developing nations, Kraft hoped that products such as Oreo would become impulse buys for children. Mars, Inc. is second in the confectionery market with 14.6% share, followed by Nestle with 7.8%. At the time of the purchase, the chocolate and sugar industry had been growing rapidly at 15% over the previous three years and was valued at $113 billion. The purchase of Cadbury was considered strange because they did not have a strong foothold on the confectionery market, but at the time Kraft noted their production of confectionery foods like Toblerone and candy foods like Oreo. Cadbury also owned popular gum brands such as Stride, Trident, Dentyne, and Chiclets. Roger Carr, chairman of Cadbury, discussed his approval of the takeover by Kraft by saying, "We believe the offer represents good value for Cadbury shareholders and are pleased with the commitment that Kraft Foods has made to our heritage, values and people throughout the world."
Cadbury sales were flat after Kraft’s acquisition. Despite the Cadbury takeover helping boost sales by 30%, Kraft's net profit for the fourth quarter fell 24% to $540m due to costs associated with integrating the UK business after the acquisition. Kraft spent a one-time $1.3 billion in integration costs to achieve $675 million in recurring annual synergy savings by the end of 2012 (estimated). Kraft was forced to increase prices to offset rising commodity costs in North America and Europe. Kraft has had to contend with the higher cost of ingredients such as corn, sugar and cocoa. Kraft chief executive Irene Rosenfeld said, “We expect it will remain weak for the foreseeable future.” Taking into account integration costs, the acquisition knocked about 33% off Kraft's earnings per share immediately after the purchase of Cadbury. In March 2011, Kraft caused national outrage when they sold the site of a historic Cadbury factory it vowed not to close for £50million after initially publically promising the continuity of production within the UK in order to win over support for the deal from shareholders. Instead, production was immediately outsourced to Poland. The Somerdale Factory was closed just days after the takeover by Kraft Foods in 2009. Former Cadbury workers demanded an apology for the abrupt selling of the plant, but Kraft’s CEO Irene Rosenfeld refused to explain her actions. Kraft continues to use Cadbury brands in emerging markets to expand all of its products. In April 2011, Kraft set to invest $150 million in South Africa’s manufacturing plants over three years. President Sanjay Khosla said, "South Africa is a priority market for us, where we focus on power brands like Cadbury chocolate. "On March 17, 2010, Kraft Foods said it was "truly sorry" over its closure of Cadbury's Somerdale Factory. Senior Kraft executive Marc Firestone made the public apology to MPs at a parliamentary select committee hearing. 
Cadbury sales were flat after Kraft’s acquisition. Despite the Cadbury takeover helping boost sales by 30%, Kraft's net profit for the fourth quarter fell 24% to $540m due to costs associated with integrating the UK business after the acquisition. Kraft spent a one-time $1.3 billion in integration costs to achieve $675 million in recurring annual synergy savings by the end of 2012 (estimated). Kraft was forced to increase prices to offset rising commodity costs in North America and Europe. Kraft has had to contend with the higher cost of ingredients such as corn, sugar and cocoa. Kraft chief executive Irene Rosenfeld said, “We expect it will remain weak for the foreseeable future.” Taking into account integration costs, the acquisition knocked about 33% off Kraft's earnings per share immediately after the purchase of Cadbury. In March 2011, Kraft caused national outrage when they sold the site of a historic Cadbury factory it vowed not to close for £50million after initially publically promising the continuity of production within the UK in order to win over support for the deal from shareholders. Instead, production was immediately outsourced to Poland. The Somerdale Factory was closed just days after the takeover by Kraft Foods in 2009. Former Cadbury workers demanded an apology for the abrupt selling of the plant, but Kraft’s CEO Irene Rosenfeld refused to explain her actions. Kraft continues to use Cadbury brands in emerging markets to expand all of its products. In April 2011, Kraft set to invest $150 million in South Africa’s manufacturing plants over three years. President Sanjay Khosla said, "South Africa is a priority market for us, where we focus on power brands like Cadbury chocolate. "On March 17, 2010, Kraft Foods said it was "truly sorry" over its closure of Cadbury's Somerdale Factory. Senior Kraft executive Marc Firestone made the public apology to MPs at a parliamentary select committee hearing. 