MPs have “significant concerns” about Kraft’s takeover of Cadbury – including the American multinational’s closure of the Somerdale factory near Bristol, despite promises to keep it open during last year’s bid battle.
The concerns are outlined in a report entitled Is Kraft working for Cadbury? by the parliamentary Business, Innovation and Skills Committee.
Trade union Unite welcomed the committee’s scrutiny of Kraft, in particular the recommendation that the UK urgently needs a new takeover regime. The committee said a repeat of Kraft’s behaviour over Cadbury’s Somerdale plant – which it promised to reprieve from closure then subsequently reneged on – must be guarded against by ensuring that promises made during bids are made binding.
Committee members were left frustrated when Kraft boss Irene Rosenfeld turned down repeated requests to be questioned and criticised the chief executive for her “regrettably dismissive attitude” in refusing to give evidence to the panel.
The report also questioned whether Kraft’s decision to move strategic brand-decision making to Zurich was in line with its pledge to manage Cadbury brands from the UK.
While the committee recognised that a “significant” marketing function remains in the UK, it said it “hoped Kraft will refrain from further transfer of marketing responsibility to Zurich given its oft-stated public commitment to Cadbury’s brand heritage”.
