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History of Cadbury - Essay Example

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John was a young Quaker; he used to sell tea, coffee, drinking chocolate and cocoa at his shop in Bulls Street, Birmingham, which was of high quality, and price. John knew that…
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History of Cadbury Cadbury s back to 1824 when John Cadbury opened a grocer’s shop in Birmingham, UK. John was a young Quaker; he used to sell tea, coffee, drinking chocolate and cocoa at his shop in Bulls Street, Birmingham, which was of high quality, and price. John knew that advertisements and promotions played an important role in creating awareness for the product therefore he advertised about one of his products “Choco Nibs”, in Birmingham Gazette in March 1824 as the most nutritious beverage for breakfast. Later on John formed a partnership with his brother by the name of “Cadbury Brothers of Birmingham” in 1847 and started operating an office in London; following the partnership in 1854, they received Royal Warrant of manufacturers of chocolate and cocoa to Queen Victoria.
Before 1850s chocolate was a luxury food item, enjoyed only by the elite society of Birmingham but in the 1850s due to a decline in the import taxes, the prices reduced and everybody could afford chocolate. In 1861, John’s partnership with his brother Benjamin was dissolved by mutual agreement and Cadbury was handed over to John’s sons George and Richard Cadbury because of the poor health of their father.
Richard took over the marketing and sales side of Cadbury, George managed the manufacturing of Cadbury chocolate and in 1866, they launched “Cocoa Essence” (all natural products without any starchy ingredient) as George acquired a revolutionary cocoa press. George and Richard decided in 1878 to expand their business and for that reason, they acquired the Bournbrook Estate, situated in the south of outskirts of Birmingham. This estate was named Bournville and later they opened the Bournville factory. In 1905, Cadbury launched its first milk chocolate with higher milk content than other chocolates and became the best selling product in the year 1913. In 1918, Cadbury’s trade increased and it spread globally when Cadbury launched its first factory at Hobart Tasmania (BBC, 1).
Cadbury mergers and acquisition by Kraft food
In 1919, Cadbury was merged with JS Fry & Sons to compete against Rowntree (brand owned by Nestle). On 22 September 1955, Cadbury advertised itself on TV for the first time. In 1969, Cadbury was again merged with beverages company Schweppes and formed Cadbury Schweppes. Cadbury Schweppes then acquired other companies but in US, the manufacturing of Cadbury’s confectionary products was licensed to The Hershey Company. In 2009, Kraft foods made a bid of $ 16.2 billion to takeover Cadbury but according to Cadbury, the bid was undervalued. Later in 2010, there was a protest by British public, unions and other groups against the takeover by Kraft foods, as they feared the loss of 4500 UK jobs (Beaudin, 1). Finally, after various disapprovals and protests, in June 2010 following the Polish division, Cadbury was taken over by Kraft foods and Cadbury –Wedel was sold to Lotte of Korea.
Problems faced by Cadbury
One problem that Cadbury faced during 2005 was the implementation of IT in various firms globally that helped the firms to cut on its cost of manufacturing and selling. Cadbury following the IT breakthrough, decided to create SAP’s ERP system that would integrated the planning, sales, finance, manufacturing, production, purchasing and distribution but it resulted in implementation problems leading to the sale of the Schweppes drinks. In June 2006, Cadbury was accused of spreading food poison amongst 40 people in UK. Cadbury admitted that its chocolate bars had been contaminated by salmonella over the past 6 months but it alerted The Foods Standard Agency after half a million of the bars were on sale. Cadbury said that the level of bacteria was low and was considered safe but FSA wanted Cadbury to pull its products off from the market. The product recall did not affect the company and it had a fresh stock available to the market due to the fact that it produces billions of chocolate bars annually (Vasagar, 2006).
Works Cited
BBC, Time Line: Cadbury’s Long History, 2011. Web. Retrieved from http://news.bbc.co.uk/2/hi/uk_news/england/8467489.stm (17 March, 2012)
Beaudin, Guy, Kraft-Cadbury: Making Acquisitions Work, Bloomsberg Business Week, 2010. Web. Retrieved from http://www.businessweek.com/managing/content/feb2010/ca2010028_928488.htm (17 March, 2012)
Vasagar, Jeevan, Chocolate may have poisoned more than 40, The Guardian, 2006. Web. Retreived from http://www.guardian.co.uk/uk/2006/jun/24/foodanddrink (17 March, 2012) Read More
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