Kraft Foods Chief Executive Irene Rosenfeld has said that owning UK-based Cadbury would enable the American confectionery giant to expand its footprint into the developing market, including India.
In an interview published in British newspaper The Sunday Times, Rosenfeld said owning Cadbury has made Kraft the biggest confectioner in the world, “with a footprint in developing markets such as India where it was weak”.
Being present in India for the past 60 years, Cadbury sells popular chocolate brands like Dairy Milk, 5-Star and Perk, among others. Apart from chocolates, it also sells products in the snacks, beverages, candy and gums categories.
Rebuffing criticism that Kraft is going to “asset-strip” Cadbury, Rosenfeld said, “Look at how Kraft has invested in Milka and Toblerone, two European businesses it picked up decades ago.”
She added that “Cadbury is an icon. We are not going to get rid of it. It generates enormous recognition and love and loyalty. I believe it’s a very important asset in the acquisition.”
Regarding the Bournville base of Cadbury, she said: “I understand it is the heart and soul of the company. I have every desire of wanting to continue to make investments in the site... And I look forward to visiting and seeing what’s under way.”
After Cadbury’s takeover, Kraft is now “eyeball to eyeball” with food giant Nestle, but in this regard, Rosenfeld waved away any bitter fight.
“We are focused on snacks and confectionery. Nestle is choosing other categories to focus on, and the market share of the two companies reflects that. Their chocolate business has been losing share around the world,” Rosenfeld said.
