House panel raps Kraft for closing down Cadbury plant

Criticising Kraft Foods' actions regarding the closure of Cadbury's Somerdale plant, a British parliamentary committee has said such moves have "damaged" the company's reputation in the country.

Ending months of bitter wrangling, Kraft in January had reached a $19.6-billion deal to acquire British confectioner Cadbury.

The UK Business, Innovation and Skills Committee today said Kraft "acted both irresponsibly and unwisely in making its original statement that it believed that it could keep the Somerdale factory open".

"Its (Kraft) actions have undoubtedly damaged its UK reputation and has soured its relationship with Cadbury employees," the report noted.  The committee was appointed by the House of Commons.

The American foods company had initially indicated that it would keep open the Somerdale factory, which was earmarked for closure.

"Kraft's initial indications that it would keep the factory open, which it reversed after gaining control of Cadbury, heightened the public's feelings of mistrust towards Kraft," the report pointed out.

According to the committee, with such an action, Kraft has left itself open to the charge that it used a "cynical ploy" to improve its public image during the Cadbury takeover. Moreover, the report asserted that now Kraft would have to make significant efforts to restore its reputation and regain the trust of its British workforce and the government, among others.