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It markets many brands in more than 155 countries. 12 of its brands annually earn more than $1 billion worldwide: Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia, Trident, Tang. 40 of its brands are at least 100 years old. The company is headquartered in Northfield, Illinois, a Chicago suburb. Its European headquarters is in Glattpark, Opfikon, Switzerland, near Zürich; Kraft is an independent public company; it is listed on the New York Stock Exchange and became a component of the Dow Jones Industrial Average on September 22, 2008, replacing the American International Group. Origin of the firm The firm today known as Kraft Foods was formed on December 10, 1923 by Thomas H. McInnerney. The firm was initially set up to execute on a rollup strategy in the then fragmented United States ice cream industry. Through acquisitions it expanded into a full range of dairy products. By 1930, eight years after it was founded, it was the largest dairy company in the United States and the world, exceeding Borden. McInnerney operated the Hydrox Corporation, an ice cream company located in Chicago, Illinois. In 1923 he went to Wall Street to convince investment bankers there to finance his scheme for consolidating the United States ice cream industry. He initially found "hard sledding" with one banker saying the dairy industry "lacked dignity." He persevered and convinced a consortium including Goldman Sachs and Lehman Brothers to finance a roll-up strategy. As a result of his efforts, National Dairy Products Corporation was formed in 1923 in a merger of McInnerney's Hydrox with Rieck McJunkin Dairy Co of Pittsburgh, Pennsylvania. The resulting firm was then listed on the New York Stock Exchange with the offer of 125,000 shares having been oversubscribed. History of Kraft
the business took hold and Kraft was joined by his four brothers to form J.In 1926. circulars and advertisements were in use by the company. thus giving a longer shelf life than conventional cheese. headquarters to prepare for its international expansion.S. In 1912. James L. By 1914. and opening a wholly owned cheese factory in Illinois. in competition with National and Borden. New York. the company established its New York City. thirty-one varieties of cheeses were being sold around the U.S. the company changed its name to Kraft Cheese Company and listed on the Chicago Stock Exchange. However. Kraft and Bros.The process was patented in 1916 and about six million pounds of the product were sold to the U. expansion by marketing. Corp 1924-Kraft Cheese Company 1903-J. Firms acquired included: 1995-Kraft Foods 1969-Kraft Co. In 1924.L. losing US$3. the company had invented pasteurized processed cheese that did not need refrigeration. Kraft started a wholesale door-to-door cheese business in Chicago in 1903. In 1915.000 and a horse.Canadian-born and of German origin.L. Company 2009-KraftCadbury Merger Kraft Timeline . Kraft and Bros. because of heavy product development. its first year of operations was "dismal". The firm then began to consolidate the United States dairy industry through acquisition. In 1916. Company in 1909. Army for military rations during World War I. it was listed on the NYSE. As early as 1911. the company began national advertising and had made its first acquisition — a Canadian cheese company.
Illinois. the firm acquired Dominion Dairies of Canada. During these years. Following the KraftPhenix acquisition. England. was selected because ". National Dairy management ran the combined business. In 1935." As described by internal documents of J. National Dairy becomes Kraft In 1969. the firm changed its name from National Dairy to Kraftco Corporation. National Dairy had sales of $315m compared with $85m for Kraft Phenix. In 1976. the Kraft Television Theatre. Kraft's founder. the firm's product lines began to diversify away from dairy products to caramel candies. The product advertised on the program.. Inc.MacLaren’s Imperial Cheese. [it had] not only had no advertising appropriation whatsoever. the company tested the marketing power of the emerging medium of television by producing an hour-long drama/anthology series. a brand of process cheese sauce." At the same time. the firm transferred to Glenview. In 1933. However. the Sealtest brand of ice cream was launched as a unified national brand to replace the firm's numerous regional brands. such as fluid milk. In 1961. in 1972. in 1969 accounted for approximately 25% of our sales. the firm continued to be called National Dairy until 1969 when it changed its name to Kraftco. still grocery stores could not keep up with the demand. the company began marketing by radio sponsorship. Product development and advertising helped the company to grow during the postwar years. In the same year it also acquired The Southern Oil Company in Manchester.. and at the end of the decade. Thomas McInnerney. Walter Thompson — the advertising firm which conceived of the marketing test — the result was "although there was no other advertising support for it whatsoever. marking the first effort by the firm to expand into fluid milk and ice cream outside the United States. National Dairy's founder. died. and James L. the company sent four million pounds of cheese to Britain weekly. in the 1950s. but had not even been distributed for several years. In 1947. the divisions became less autonomous and even diversified to the glass-packaging business with the acquisition of Metro Glass in 1956. From the 1950s onward. The reason for the name change was given at the time: "Expansion and innovation have taken us far afield from the regional milk and ice cream business we started with in 1923. the firm began to move away from low value added commodity dairy products. macaroni and cheese dinners and margarines. During World War II. Dollar sales of these original products have remained relatively static over the past ten years and. launching sliced process cheese and Cheez Whiz. its name changed to Kraft. Kraft.At the time of the acquisition. Historically. all of the firm's sales came from dairy products. to emphasize the .
Heinz and in 1995. as new acquisitions in the food business . it changed its name to the present name. Lender's Bagels. it sold its frozen dinners unit to H. that it would spin off all the remaining Kraft Foods shares . In 2004.makers of Oscar Mayer meats.makers of the Duracell brand of batteries. its pet snacks division (MilkBone) in 2006. Kraft sold Duracell to private equity firm Kohlberg Kravis Roberts. In 1990.trademark the company had been known for and as a result of the fact that dairy. In 1994.9 billion and merged the company with Kraft Foods the same year. Jell-O gelatin. it acquired RJR Nabisco's cold cereal business (mainly Shredded Wheat and Shreddies cereals) while selling its Breyers ice-cream division to Unilever and its Birds Eye unit to Dean Foods.such as Churny premium cheeses. while doing minor divestitures including its hot cereals division (Cream of Wheat) in 2007. Frusen Gladje ice cream and Celestial Seasonings tea .as Kraft General Foods. Inc. which was sold in 1996 to CPC International). Dart & Kraft offered mixed results to its shareholders. Its aggressive product development was reversed after the merger. In 2001. Crystal Light and Tang powdered beverage mixes. other than cheese. Philip Morris (renamed Altria in 2003) acquired Nabisco Holdings for $18. Philip Morris sold 280 million Kraft shares via the third-largest IPO of all time. Entenmann's baked goods. Kraft merged with Philip Morris's General Foods unit . juice drinks andFruit2o in 2007 and some grocery brands in 2006. Inc. Budget Gourmet frozen dinners.1% stake in the company.) while changing its name back to Kraft. Philip Morris Companies purchased Kraft for $12. Wilsonart brand of plastics and Thatcher glass . Philip Morris acquisition and merger with General Foods At the end of 1988. retaining an 88. and itself was acquired by Procter and Gamble in 2005. In 1993. Kraft merged with Dart Industries . Tupperware brand of plastic containers. who then put it into an initial public offering in 1989. its candy division and its tablespreads division. it sold its bakery division (except Lender's Bagels. In 1995. Post Cereals.S.to form Dart & Kraft During the 1980s. Kool-Aid. Premark was bought by Illinois Tool Works in 1999. Financial expansion In 2000. was now only a minor part of the company's sales. Kraft Foods. as it became slow in addressing issues on its product lines due to its size.leading Dart & Kraft to spin off its nonfood business (except Duracell batteries) into a new entity (Premark International. Gillette bought Duracell in 1996.J. 2007. The same year.Altria announced on January 31. West Bend brand of home appliances. In 1988.Maxwell House coffee.Shake 'n Bake flavored coatings and numerous other packaged foods . and also company politics. In 1980.slightly offset the lagging nonfood business Tupperware's decrease in sales and KitchenAid's (acquired soon after the merger) slide in market share . it sold its sugar confectionery division to Wrigley. it sold its foodservice unit. Log Cabin syrup was sold in 1997. Reorganization also occurred after the name change. the company acquired Jacobs Suchard (a European coffee and confectionery giant) and Freia Marabou (a Scandinavian confectionery maker) to expand overseas as its business was heavily dependent on the U. In 1989.9 billion.
Kraft agreed to sell its cereal unit to Ralcorp Holdings. Kraft is now an independent publicly held company. run by billionaire investor Warren E.4 billion. In November 2007. with options such as buying Wendy's fast food chain or selling off Post cereals and Maxwell House coffee.6% of the outstanding stock of Kraft Foods.3 billion. as reported in the holding company's 2010 annual report. in part because Kraft agreed not to close French factories and keep the new merged divisions headquarters near Paris for at least three years. Kraft's announcement was not met with the same protests. including iconic French biscuit brand Lefèvre-Utile. a major privatelabel food maker. 2007. Berkshire Hathaway Inc. On January 31. in danger of a downgrade by Standard and Poor's. Buffett announced that it had acquired an 8% stake in Kraft worth over $4 billion. In February 2008.to Altria's shareholders. . Berkshire Hathaway owns 5. for $2.1% stake would be spun off to Altria shareholders at the end of March 2007. Buffett's business partner Charles Munger had also invested over $300 million in Kraft. This would add 50% to Ralcorp's sales. and will be used for Kraft's debt payment. each will be given approximately 0.2 billion.6 billion in a form of a spin-off merger. after months of speculation. the company announced that its 88. the company bought Groupe Danone's biscuit (cookie) and cereal division for $7. to $3. which is at $13.7 share of Kraft for every Altria share they owned. While two years earlier firestorms of protest had arisen over plans for American PepsiCo's hostile takeover of the French company. In July 2007. Investor Nelson Peltz bought a three-percent stake at Kraft Foods and is talking with the executives on revitalizing the business.
0 km) south of the outskirts of Birmingham. The brothers opened an office in London and in 1854 they received the Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria. at Bull Street in Birmingham. which has been renamed Dr Pepper Snapple Group. History In 1824. Located next Stirchley Road railway station. Cadbury UK is a subsidiary of Cadbury plc. made in a factory in Bridge Street and sold mainly to the wealthy because of the high cost of production. beverage unit. coffee.S. comprising 14. John Cadbury became a partner with his brother Benjamin and the company they formed was called 'Cadbury Brothers of Birmingham'. John Cadbury began selling tea. After integration the combined Cadbury and Kraft companies became the largest confectionery company in the world. the industry's second-largest globally after the combined Mars-Wrigley Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge.5 acres (5. which he produced himself.9 ha) of countryside 5 miles (8. England. . England and formerly listed on the London Stock Exchange. Cadbury was controversially acquired by Kraft Foods in February 2010. they acquired the Bournbrook estate. John Cadbury's sons Richard and George decided in 1878 that they needed new premises. In the 1850s the industry received a much needed boost with the reduction in the high import taxes on cocoa. He later moved into the production of a variety of cocoa and drinking chocolates. allowing chocolate to be more affordable to everyone. which itself as opposite the canal. and drinking chocolate. they renamed the estate Bournville and opened the Bournville factory the following year. London Borough of Hillingdon.Cadbury plc is a British confectionery company. in which its global confectionery business was separated from its U. The company was a constant constituent of the FTSE 100 from the index's 1984 inception until its 2010 takeover. based in the Bournville suburb of Birmingham. The firm was known as "Cadbury Schweppes plc" from 1969 until a May 2008 demerger. Taking over the business in 1861.
Demerger of Cadbury and Schweppes In March 2007. it was revealed that Cadbury Schweppes was planning to split its business into two separate entities: one focusing on its main chocolate and confectionery market. it was placed under government supervision for the entire war. soon followed by Whole Nut in 1933. and normal production resumed. In the US. Fruit and Nut was introduced as part of the Dairy Milk line in 1928.The demerger took effect on 2 May 2008. and it became the company's best selling product by 1913.In 1893. the Bournville factory was redeveloped and mass production began in earnest. By this point. parts of the Bournville factory were turned over to war work. Workers ploughed football fields to plant crops. By 1900 the estate included 313 cottages and houses set on 330 acres (130 ha) of land. Mistic and Stewart's (formerly Cable Car Beverage) were sold by Triarc to Cadbury Schweppes in 2000 for $1. with the drinks . Cadbury Schweppes purchased Royal Crown from Triarc. Tasmania and in 1919 undertook a merger with J. Cadbury launched its Dairy Milk bar. producing milling machines and seats for fighter aircraft. Merger with Schweppes Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in 1969 Cadbury Schweppes went on to acquire Sunkist. During World War II. Fry & Sons. at his own expense. In October of that same year. resulting in the integration of well-known brands such as Fry's Chocolate Cream and Fry's Turkish Delight. Cadbury opened their first overseas factory in Hobart. In 1918. Cadbury subsequently built new factories and had an increasing demand for their products. Typhoo Tea and more. another chocolate manufacturer. After the war. with a higher proportion of milk than previous chocolate bars. S. As chocolate was regarded as an essential food. In 1905. Cadbury was the brand leader in the United Kingdom. The wartime rationing of chocolate ended in 1949. Canada Dry. Snapple. George Cadbury bought 120 acres (49 ha) of land close to the works and planned. Schweppes Beverages was created and the manufacture of Cadbury confectionery brands was licensed to The Hershey Company. a model village which would 'alleviate the evils of modern more cramped living conditions'.45 billion. the other on its US drinks business.
Cadbury merged with Peter Paul in 1978. Operations United Kingdom Cadbury plc also owns Trebor Bassett. Between 500 and 700 jobs were affected by this change. such as Cadbury Fingers. Ice cream based on Cadbury products. as of August 2004.Ten years later Hershey acquired the chocolate business from Cadbury. Cadbury opened their first Irish factory in Ossary RD. and the transfer of around 800 employees. the company announced that it was reverting to the use of cocoa butter in New Zealand. Maynards and Halls. is exported every year. Dublin in 1933. they would source cocoa beans through Fair Trade channels. the Own Label trading division of Cadbury Trebor Bassett was sold to Tangerine Confectionery for £58million cash. Pepper Snapple Group Inc. In mid-2009 Cadbury replaced some of the cocoa butter in their non-UK chocolate products with palm oil. . Recent developments In October 2007. In 2008 Monkhill Confectionery. By August 2009. there was no "new improved recipe" claim placed on New Zealand labels. are produced under licence by Burton's Foods.. but the cakes were originally part of Cadbury Foods Ltd with factories at Blackpole in Worcester and Moreton on the Wirral with distribution depots throughout the UK.000 staff in the UK. This sale included factories at Pontefract.In January 2010 prospective buyer Kraft pledged to honour Cadbury's commitment. Fry's. formerly part of Fry's. Cadbury announced the closure of the Somerdale Factory. In December 2008 it was announced that Cadbury was to sell its Australian beverage unit to Asahi Breweries. Ireland Cadbury Ireland Limited is a confectionery company in Ireland based in Coolock in Dublin. Accordingly. manufacturers of gum and mints but not chocolate. like 99 Flake. More than €250 million worth of Cadbury chocolate is produced in Ireland. is made under licence by Frederick's Dairies. Production transferred to other plants in England and Poland. Keynsham. In addition. Cleckheaton and York and a distribution centre near Chesterfield. Consumer backlash was significant from environmentalists and chocolate lovers. Biscuits bearing the Cadbury brand. had eight factories and 3.business becoming Dr. Despite stating this was a response to consumer demand to improve taste and texture. The confectionery business in the UK is called Cadbury UK (formerly Cadbury Trebor Bassett) and. Cadbury cakes and chocolate spread are manufactured under licence by Premier Foods. bringing Ireland valuable earnings from abroad. United States Cadbury's presence in the States consists of the confectionery unit Cadbury Adams.
and is associated with several types of confectionery including former Trebor and Bassett's brands or products such as Liquorice Allsorts. chocolate Buttons. Headquarters Cadbury's headquarters (Head Office UK) is the Cadbury House in the Uxbridge Business Park in Uxbridge. which is Building 3 of the business park. Crunchie. Cadbury's CEO.000 this gives a total remuneration of over £4 million. In 1982. London Borough of Hillingdon. Chomp. India Cadbury India began its operations in India in 1948 by importing chocolates. In April 2009. and Softmints. . Prior to the May 2008 demerger. Mumbai. Flake.800 m2) of space in its head office. had relocated from central London to its current head office. Curly Wurly. Schweppes Australia was acquired by Asahi Breweries. the boxed chocolate brand Milk Tray. Jelly Babies. the company also owns Maynards and Halls. the North American business also contained beverage unit Cadbury Schweppes Americas Beverages. Caramel.although the Cadbury group's chocolate products have been sold in the US since 1988 under the Cadbury name. Flumps. who leases space in the building it occupies. was paid a £2.665. Australia and New Zealand On 27 February 2009 the confectionery and beverages businesses of Cadbury Schweppes Pty Ltd in Australia were formally separated and the beverages business began operating as Schweppes Australia Pty Ltd. Kolkata and Chennai. Boost. As well as Cadbury's chocolate. The corporate head office is in Mumbai. and Fudge. and England. Executive pay In 2008 Todd Stitzer. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. Picnic.000 square feet (7. It now has manufacturing facilities in Thane. Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi. Cadbury Schweppes purchased the Duffy-Mott Company. Combined with his annual salary of £985. Cadbury. Mints. Trident gum. Black Jack chews. the chocolate itself has been manufactured by Hershey and can be found in their chocolate stores. Wispa. Cadbury occupies 84. Dolly Mix.000 and other payments of £448.000 bonus. Induri (Pune) and Malanpur (Gwalior). and the twist-wrapped chocolates Cadbury Heroes. Products Major chocolate brands produced by Cadbury include the bars Dairy Milk.
093 m2). Kraft announced that the Cadbury head office would remain the "Cadbury House. In 2002 the company agreed to pay £68. As of that year the head office had 200 employees. City of Westminster.Cadbury's previous head office was in 25 Berkeley Square in Mayfair. In 1992 the company leased the space for £55 per 1 square foot (0. The Daily Telegraph reported in 2007 that the rent was expected to increase to a "three-figure sum." ." In 2007 Cadbury Schweppes had announced that it was moving to Uxbridge to cut costs.75 per square foot. After the Kraft Foods acquisition of Cadbury.
The BCG matrix shows how Kraft can leverage Cadbury’s dominance in confectionery and chocolate biz in India. . needs to work on bringing Kraft cheese through the organized route and position oreo and toblerone accordingly. Kraft. Cadbury’s revenue can be utilized to build up Kraft’s financial health quickly in India. in order to gain a significant presence in Indiadeveloping countries.