Kraft Closer to Cadbury Takeover

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With the takeover of Cadbury’s by US food company Kraft looking more and more likely, what will this mean to British chocolate lover?

Make no mistake this would be a massive financial transaction, recently Kraft’s market cap was an astounding $43 Billion while Cadbury’s was a more modest $18 Billion.

More recently to improve their global reach Cadbury’s initiated a licensing agreement with Hershey’s to manufacture and sell their chocolate in the United States. However any chocolate connoisseur will tell you that the Hershey manufactured “Cadbury’s” chocolate is just not quite the same as the real thing. The reason being, that Hershey manufacture chocolate for distribution in all 50 states, and with their varied temperature ranges they have to adjust the ingredients accordingly. This leads to a higher wax content in the US manufactured chocolate to withstand the higher range of temperatures across the states, particularly in the South-West desert states. If you don’t want to take my word for it, try the taste test yourself. Although sometimes it is difficult to get the UK manufactured chocolate in the US I have found UK Goods to be a very good reliable source for the creamier and more velvety variety of Cadbury’s chocolate. They are based in the US and have made a good business over the last 10+ years supply British ex-pats residing in the US with their comfort foods from home. They are a reliable source of various products such as Walker’s crisps, Jaffa Cakes, Branston pickle and Marmite. I like to think of it as a virtual UK pantry always just a mouse click away! Somehow they always seem to get the seasonal products as well, such as Easter Eggs, Christmas puddings etc.

So now the takeover looks to be destiny, (for a while there was hope of a White Knight rescue, but those hopes are diminishing as I type. Nestle, where are you?). What will this mean for chocolate lovers across the globe? Will the chocolate taste cheesier, after all Kraft are renowned for the Singles cheese slices. Will the Kraft manufacturing methods lead to chocolate predominately filled with wax going global? In a bid to streamline their processes and add value to the bottom line will all chocolate production be consolidated to US factories?

Or will Kraft take a different approach. When you look at their stable of 61 brands; amongst which they can count, Philadelphia Cheese, Maxwell House coffee, Cracker Barrel Cheese, Capri Sun drink, and not to forget they own Nabisco and their very popular Oreo cookies to name but a few. Will they determine that Cadbury’s can continue with autonomy or will they bring them under the direct control of Kraft at corporate headquarters in Northfield Illinois.

As you can see this prospective financial transaction creates more questions than answers. But the biggest question of all that remains for me is, will I still be able to get my beloved UK manufactured Cadbury’s chocolate when the takeover is finally closed? Only time will tell, but this gentleman's fingers remain firmly crossed!

Article Source: http://depositarticles.com/

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