The sale of Cadbury
to the Yanks is big news over here in the UK. It has sparked a wave of fevered patriotism and nostalgia over an iconic British brand.
The fear of job losses underpins much of the coverage on Kraft Foods’ takeover bid. And with reason: Cadbury chairman Roger Carr said yesterday that redundancies were an “inevitability”.
What this will mean for buyers at Cadbury, it is too early to say. We do know however, that the burden of cost-cutting will fall squarely on their shoulders.
And what about more long-term implications for the confectionery firm's supply chain? The real Cadbury decision-makers will no longer preside in the UK, potentially making it difficult for incumbent vendors to hold on to contracts and less palatable for other British suppliers to compete for future business. The result is that more of Cadbury’s money is likely to filter into the US economy.
This point has not gone unnoticed by angry union leaders, who believe the merger has been struck in the bubble of the City.