I.

Background of the company
1. Cadbury

Founded in 1824 in Great-Britain, Cadbury is a confectionery company that manufactures mainly sweets and chocolate but also bubble-gum, drinks or cakes. The headquarters are in Berkeley Square in London but Cadbury is also implanted in France, Canada, Australia, and USA even if the products sold are not available in all the countries. In 1969, Schweppes and Cadbury merged but they later split in May 2008 so that the company could focus only on the confectionery and chocolate market. In February 2010, Cadbury has been taken over by the American giant Kraftfoods. As a result of this acquisition, Cadbury's brand image has been damaged in the UK and the firm has faced an internal turmoil as many managers left the company. But Cadbury still remains Britain's best-loved brand according to “The Sun” (12/04/2010).

2. Cadbury Dairy Milk The most famous and popular brand in the UK is Dairy Milk which has been launched in 1905. It is a milk chocolate manufactured with Fairtrade cocoa originated from Ghana (West Africa). Cadbury Dairy Milk is available in more than 30 countries and 60 varieties such as Fruit & Nut, Wholenut, Caramel, Snack, Top Deck or Min Crisp. According to Kraftfoods website, “the chocolate category is growing at 7.4 percent globally and Cadbury Dairy Milk is growing even faster, at 8.6 percent a year, according to Euromonitor” and “(the brand) generates more than $1 billion of sales each year”.

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II.

Summary of relevant secondary data identifying key issues

1. Some figures about Kraft/Cadbury  An income of $12.3 billion, for the 2nd quarter 2010 (the acquisition of Cadbury have boosted the income by 22.8%). A net profit of $937 million, for the 2nd quarter 2010 (+37% of increase compared to 2009). Cadbury has the No. 1 or No. 2 positions in more than 20 of the world's 50 biggest confectionery markets. Cadbury operates in more than 60 countries and employs more than 46,000 people. Full-year