Kraft Determined to Continue the Campaign to Secure Cadbury
Tuesday, November 17, 2009 2:23If there is a recovery under way in the US, it is not spilling over into workaday markets served by Kraft Foods North America.
Net revenues fell by 1.8% in the third quarter, while the core cheese business suffered a whopping 10% decline as Kraft slashed its prices by 17% to keep the volumes moving. That explains why Kraft is so determined to continue its campaign to secure Cadbury.
Where Kraft’s figures were slugs, snails and processed cheese, Cadbury’s were sugar, spice and chocolate. Cadbury’s UK revenues indicated solid growth but, more importantly, demand in the developing markets continues unabated. This bid is about Kraft’s need to escape the dying home fires. It needs to find food retail avenues where there are large numbers of consumers who are feeling a bit wealthier, rather than a bit poorer. It matters not a jot that the average American is so much richer than the average Brazilian or Indian. What matters is whether the average Carioca from Rio feels he can afford another bar of chocolate today.
For that Kraft may feel lit can afford a bit more than £9.8 billion, but not just yet.
Related posts:
- Kraft Set to Raise Cadbury Bid
Kraft is drawing up plans to raise its £10.3bn hostile... - Fears for Cadbury Jobs, Despite Food Giant’s Vow
American food giant Kraft has renewed its pledge to save... - Ferrero Unwraps Plan for $4.5bn Loan to Join Cadbury Bid Party
Ferrero moved a step closer to gatecrashing the £10.5 billion... - Cadbury Shares Soar as Trio Prepare to Enter Bid Battle
Shares in Cadbury shot to an all-time high amid hopes... - Cadbury Hits a High on Hershey Talk
Shares in Cadbury shot to a record high on Tuesday...
