Cadbury

This article is about the confectionery company. For other uses, see Cadbury (disambiguation).

Cadbury

Type	Subsidiary of Kraft Foods
Industry	Confectionery
Founded	1824
Headquarters	Cadbury House, London, United Kingdom
Products	See list of Cadbury products
Revenue	GB£5,384 million (2008)
Operating income	GB£388 million (2008)
Net income	GB£364 million (2008)
Employees	71,657 (2008)[1]
Parent	Kraft Foods
Website	Cadbury.co.uk

Cadbury is a confectionery company owned by Kraft Foods and is the industry's second-largest globally after Mars, Incorporated.^[2] Headquartered in Uxbridge, London, United Kingdom, the company operates in more than 50 countries worldwide.

The company was known as Cadbury Schweppes plc from 1969–2008 until its demerger, in which its global confectionery business was separated from its US beverage unit (now called "Dr Pepper Snapple Group").^[3] It was also a constant constituent of the FTSE 100 from the index's 1984 inception until its 2010 Kraft Foods takeover.^[4][5]

History

1824-1900: Early history

In 1824, John Cadbury began selling tea, coffee, and drinking chocolate, which he produced himself, at Bull Street in Birmingham, England. He later moved into the production of a variety of cocoa and drinking chocolates, made in a factory in Bridge Street and sold mainly to the wealthy because of the high cost of production. John Cadbury became a partner with his brother Benjamin and the company they formed was called 'Cadbury Brothers of Birmingham'.^[6]

The brothers opened an office in London and in 1854 they received the Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria. In the 1850s the industry received a much needed boost, with the reduction in the high import taxes on cocoa, allowing chocolate to be more affordable to everybody.

Due to the popularity of a new expanded product line, including the "Cadbury's Cocoa Essence", the company decided to cease trading in tea in 1873. Master confectioner Frederic Kinchelman was appointed to share his recipe and production secrets with Cadbury, which led to an assortment of chocolate covered products.

Taking over the business in 1861, John Cadbury's sons Richard and George decided in 1878 that they needed new premises. Better transport access for milk that was inward shipped by canal, and cocoa that was brought in by rail from London, Southampton and Liverpool docks was taken into consideration. With the development of the Birmingham West Suburban Railway along the path of the Worcester and Birmingham Canal, they acquired the Bournbrook estate, comprising 14.5 acres (5.9 ha) of countryside 5 miles (8.0 km) south of the outskirts of Birmingham. Located next Stirchley Road railway station, which itself as opposite the canal, they renamed the estate Bournville and opened the Bournville factory the following year.

In 1893, George Cadbury bought 120 acres (49 ha) of land close to the works and planned, at his own expense, a model village which would 'alleviate the evils of modern more cramped living conditions'. By 1900 the estate included 313 cottages and houses set on 330 acres (130 ha) of land. As the Cadbury family were Quakers there were no pubs in the estate;^[7] in fact, it was their Quaker beliefs that first led them to sell tea, coffee and cocoa as alternatives to alcohol.^[8]

1900-2007

Somerdale Factory from 1919 merger with Fry's

In 1905, Cadbury launched its Dairy Milk bar, with a higher proportion of milk than previous chocolate bars, and it became the company's best selling product by 1913. Fruit and Nut was introduced as part of the Dairy Milk line in 1928, soon followed by Whole Nut in 1933. By this point, Cadbury was the brand leader in the United Kingdom. These were accompanied by several other products: Flake (1920), Cream-filled eggs (1923), Crunchie (1929) and Roses (1938).^[9] Cadbury's Milk Tray was first produced in 1915 and continued in production throughout the remainder of the First World War. More than 2,000 of Cadbury's male employees joined the Armed Forces and to support the war effort, Cadbury provided clothing, books and chocolate to soldiers. After the war, the Bournville factory was redeveloped and mass production began in earnest. In 1918, Cadbury opened their first overseas factory in Hobart, Tasmania and in 1919 undertook a merger with J. S. Fry & Sons, another chocolate manufacturer, resulting in the integration of well-known brands such as Fry's Chocolate Cream and Fry's Turkish Delight.^[6] During World War II, parts of the Bournville factory were turned over to war work, producing milling machines and seats for fighter aircraft. Workers ploughed football fields to plant crops. As chocolate was regarded as an essential food, it was placed under government supervision for the entire war. The wartime rationing of chocolate ended in 1949, and normal production resumed. Cadbury subsequently built new factories and had an increasing demand for their products.^[6]

Schweppes merger

The Cadbury Schweppes logo used until the demerger in 2008

Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in 1969.^[10]

Cadbury Schweppes went on to acquire Sunkist, Canada Dry, Typhoo Tea and more. In the US, Schweppes Beverages was created and the manufacture of Cadbury confectionery brands were licensed to The Hershey Company.

Snapple, Mistic and Stewart's (formerly Cable Car Beverage) were sold by Triarc to Cadbury Schweppes in 2000 for $1.45 billion.^[11] In October of that same year, Cadbury Schweppes purchased Royal Crown from Triarc.^[12]

Schweppes demerger

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; the other on its US drinks business.^[13] The demerger took effect on 2 May 2008, with the drinks business becoming Dr. Pepper Snapple Group Inc.^[3] In December 2008 it was announced that Cadbury was to sell its Australian beverage unit to Asahi Breweries.^[14]

2007-present

In October 2007, Cadbury announced the closure of the Somerdale Factory, Keynsham, formerly part of Fry's. Between 500 and 700 jobs were affected by this change. Production transferred to other plants in England and Poland.^[15]

In 2008 Monkhill Confectionery, the Own Label trading division of Cadbury Trebor Bassett was sold to Tangerine Confectionery for £58million cash. This sale included factories at Pontefract, Cleckheaton and York and a distribution centre near Chesterfield, and the transfer of around 800 employees.^[16]

In mid-2009 Cadbury replaced some of the cocoa butter in their non-UK chocolate products with palm oil. Despite stating this was a response to consumer demand to improve taste and texture, there was no "new improved recipe" claim placed on New Zealand labels. Consumer backlash was significant from environmentalists and chocolate lovers. By August 2009, the company announced that it was reverting to the use of cocoa butter in New Zealand.^[17] In addition, they would source cocoa beans through Fair Trade channels.^[18] In January 2010 prospective buyer Kraft pledged to honour Cadbury's commitment.^[19]

Kraft Foods takeover

On 7 September 2009 Kraft Foods made a £10.2 billion (US$16.2 billion) indicative takeover bid for Cadbury. The offer was rejected, with Cadbury stating that it undervalued the company.^[20] Kraft launched a formal, hostile bid for Cadbury valuing the firm at £9.8 billion on 9 November 2009.^[21] Business Secretary Peter Mandelson warned Kraft not to try to "make a quick buck" from the acquisition of Cadbury.^[22] On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal and that Kraft would purchase Cadbury for £8.40 per share, valuing Cadbury at £11.5bn (US$18.9bn). Kraft, which issued a statement stating that the deal will create a "global confectionery leader", had to borrow £7 billion (US$11.5bn) in order to finance the takeover.^[23]

The Hershey Company, based in Pennsylvania, manufactures and distributes Cadbury-branded chocolate (but not its other confectionery) in the United States and has been reported to share Cadbury's "ethos".^[24] Hershey had expressed an interest in buying Cadbury because it would broaden its access to faster-growing international markets.^[25] But on 22 January 2010, Hershey announced that it would not counter Kraft's final offer.^[26][27][28]

The acquisition of Cadbury faced widespread disapproval from the British public, as well as groups and organisations including trade union Unite,^[29] who fought against the acquisition of the company which, according to Prime Minister Gordon Brown, was very important to the British economy.^[30] Unite estimated that a takeover by Kraft could put 30,000 jobs "at risk",^[24][31][32] and UK shareholders protested over the Mergers and Acquisitions advisory fees charged by banks. Cadbury's M&A advisers were UBS, Goldman Sachs and Morgan Stanley.^[33][34][35] Controversially, RBS, a bank 84% owned by the United Kingdom Government, funded the Kraft takeover.^[36][37]

On 2 February 2010, Kraft secured over 71% of Cadbury's shares thus finalising the deal.^[38] Kraft had needed to reach 75% of the shares in order to be able to delist Cadbury from the stock market and fully integrate it as part of Kraft. This was achieved on 5 February 2010, and the company announced that Cadbury shares would be de-listed on 8 March 2010.^[39]

On 3 February 2010, the Chairman Roger Carr, chief executive Todd Stitzer and chief financial officer Andrew Bonfield^[40] all announced their resignations. Stitzer had worked at the company for 27 years.^[41]

On 9 February 2010, Kraft announced that they were planning to close the Somerdale Factory, Keynsham, with the loss of 400 jobs.^[42] The management explained that existing plans to move production to Poland were too advanced to be realistically reversed, though assurances had been given regarding sustaining the plant. Staff at Keynsham criticised this move, suggesting that they felt betrayed and as if they have been "sacked twice".^[43] On 22 April 2010, Phil Rumbol, the man behind the famous Gorilla advertisement, announced his plans to leave the Cadbury company in July following Kraft's takeover.^[44]

In June 2010 the Polish division, Cadbury-Wedel, was sold to Lotte of Korea. The European Commission made the sale a condition of the Kraft takeover. As part of the deal Kraft will keep the Cadbury, Hall's and other brands along with two plants in Skarbimierz. Lotte will take over the plant in Warsaw along with the E Wedel brand.^[45]

Operations

United Kingdom

Cadbury

Founded	1824
Headquarters	Bournville, Birmingham, United Kingdom

The confectionery business in the UK is called Cadbury UK (formerly Cadbury Trebor Bassett) and, as of August 2004, had eight factories and 3,000 staff in the UK. Biscuits bearing the Cadbury brand, such as Cadbury Fingers, are produced under licence by Burton's Foods. Cadbury also owns Trebor Bassett, Fry's, Maynards and Halls. Ice cream based on Cadbury products, like 99 Flake, is made under licence by Frederick's Dairies. Cadbury cakes and chocolate spread are manufactured under licence by Premier 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.

Other Kraft subsidiaries in the UK include: Cadbury Two LLP, Cadbury UK Holdings Limited, Cadbury US Holdings Limited, Cadbury Four LLP, Cadbury Holdings Limited, and Cadbury One LLP.

Ireland

Cadbury

Founded	1932
Headquarters	Coolock, Dublin, Ireland

Cadbury Ireland Limited is based in Coolock in Dublin. Cadbury opened their first Irish factory in Ossary RD., Dublin in 1933, when the company manufactured and sold just three products. Today, it exports over 200 of its products to 30 countries worldwide, making a contribution of €110 million of Irish trade. Cadbury Ireland uses local ingredients. More than €250 million worth of Cadbury chocolate is produced in Ireland, is exported every year, bringing Ireland valuable earnings from abroad.

Cadbury Ireland operates three factories in Ireland with two in Dublin, in Coolock (where the headquarters of Cadbury Ireland are located) and Tallaght. The third is in Rathmore, County Kerry. Products made by Cadbury in Ireland include Cadbury Dairy Milk, Wispa, Flake, and Crunchie.

United States

Cadbury

Founded	December 2002
Headquarters	Parsippany-Troy Hills, New Jersey, United States
Products	Trident, Certs, Chiclets, Halls (cough drop)

Cadbury Adams produces candy, gum, breath mints and cough drops. It is headquartered in Parsippany, New Jersey. The company was formed after the then Cadbury Schweppes purchased the Adams brand from Pfizer in December 2002 for US$4.2 billion. In Canada, Cadbury Adams also produces hydrogenated oil products and chocolates such as the Caramilk bar, Cadbury Mr. Big, Dairy Milk, Cadbury Mini Eggs and Wunderbar.

American Chicle was purchased by Warner-Lambert in 1962; Warner-Lambert renamed the unit Adams in 1997 and merged with Pfizer in 2000.

Cadbury merged with Peter Paul in 1978.^[46] Ten years later Hershey acquired the chocolate business from Cadbury.^[46] Accordingly, although the Cadbury group's chocolate products have been sold in the US since 1988 under the Cadbury name, the chocolate itself has been manufactured by Hershey. Prior to the May 2008 demerger, the North American business also contained beverage unit Cadbury Schweppes Americas Beverages. In 1982, Cadbury Schweppes purchased the Duffy-Mott Company.^[47]

Cadbury Adams products include:

• Maynards
  • Wine Gums (original and Sour)
  • Swedish Fish
  • Swedish Berries
  • Juicy Squirts (Sours, Citrus, and Berry)
  • Original Gummies
  • Fuzzy Peach
  • Sour Chillers
  • Sour Patch Kids
  • Mini Fruit Gums
  • Sour Cherry Blasters
  • Fruit Mania
  • Bassett's Liquorice Allsorts

• Gum
  • Black Jack chewing gum
  • Bubbaloo bubble gum
  • Bubblicious bubble gum
  • Chiclets
  • Clorets
  • Dentyne
  • Freshen Up Gum
  • Sour Cherry Gum (Limited)
  • Sour Apple Gum (Limited)
  • Stride
  • Trident

• Other
  • Certs breath mints
  • Halls (cough drop)

• Discontinued products
  • Beemans chewing gum
  • Cinn*a*Burst gum
  • Clove gum
  • Fruit*a*Burst gum
  • Mint*a*Burst gum
  • Sparkies

Australia and New Zealand

Cadbury operates three Australian factories as well as one in New Zealand; two in Melbourne, Victoria (Ringwood and Scoresby), one in Hobart, Tasmania (Claremont), and one in Dunedin, New Zealand. The Claremont factory was once a popular tourist attraction and operated daily tours; however, the factory ceased running full tours mid-2008, citing health and safety reasons.^[48] Cadbury has been upgrading its manufacturing facility at Claremont, Tasmania, Australia, since 2001 ^[49]

On 27 February 2009 the confectionery and beverages businesses of Cadbury Schweppes in, Australia were formally separated and the beverages business began operating as Schweppes Australia Pty Ltd In April 2009, Schweppes Australia was acquired by Asahi Breweries.^[50] Cadbury Australia Pty Limited

India

Cadbury

Founded	19 July 1948
Headquarters	Mumbai, India
Key people	Anand Kripalu, Managing Director[51]
Products	Cadbury Dairy Milk, 5-star, Perk, Gems, Eclairs ,Oreo and Bournvita
Employees	2000

Cadbury India began its operations in India in 1948 by importing chocolates. It now has manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, Cadbury has worked with the Kerala Agricultural University to undertake cocoa research.^[52][53] Cadbury was incorporated in India on 19 July 1948. Currently, Cadbury India operates in four categories: chocolate confectionery, milk food drinks, candy and gum category. It has five company owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). It products include Cadbury Dairy Milk, 5-star, Perk, Gems, Eclairs, Bournvita,^[54] Celebrations and Bilkul ^[55]

It is the market leader in Chocolate Confectionery business with a market share of over 70%.^[56] The Brand Trust Report, India Study, 2011 published by Trust Research Advisory ranked Cadbury in the top 100 most trusted brands list.

Other subsidiaries

Other Kraft subsidiaries including the Cadbury name include^[57]

• Cadbury Botswana (Proprietary) Limited Botswana
• Cadbury (Swaziland) (Pty) Limited Swaziland
• Cadbury Adams (Philippines) Inc. Philippines
• Cadbury Adams (Thailand) Limited Thailand
• Cadbury Adams Bolivia S.A. Bolivia
• Cadbury Adams Canada Inc. Canada
• Cadbury Adams Colombia S.A. Colombia
• Cadbury Adams Costa Rica, S.A. Costa Rica
• Cadbury Adams Distribuidora Mexico, S. de R.L. de C.V. Mexico
• Cadbury Adams Dominicana S.A. Dominican Republic
• Cadbury Adams Ecuador S.A. Ecuador
• Cadbury Adams El Salvador S.A. de C.V. El Salvador
• Cadbury Adams Guatemala, S.A. Guatemala
• Cadbury Adams Holdings LLC Delaware United States
• Cadbury Adams Honduras, S.A. Honduras
• Cadbury Adams Manufactura, S. de R.L. de C.V. Mexico
• Cadbury Adams Mexico, S. de R.L. de C.V. Mexico
• Cadbury Adams Middle East Offshore S.A.L. Lebanon
• Cadbury Adams Middle East S.A.L. Lebanon
• Cadbury Adams Nicaragua, S.A. Nicaragua
• Cadbury Adams Panama, Sociedad Anonima Panama
• Cadbury Adams Peru S.A. Peru
• Cadbury Adams Servicios, S. de R.L. de C.V. Mexico
• Cadbury Adams USA LLC Delaware United States
• Cadbury Adams, S.A. Venezuela
• Cadbury Bebidas De Argentina S.A. Argentina
• Cadbury Belgium BVBA Belgium
• Cadbury Beverages de Venezuela CA Venezuela
• Cadbury Beverages Japan Limited United Kingdom
• Cadbury Brasil Comercio de Alimentos Ltda. Brazil
• Cadbury CIS B.V. Netherlands
• Cadbury Confectionery (Guangzhou) Co., Limited China
• Cadbury Confectionery B.V. Netherlands
• Cadbury Confectionery Malaysia Sdn. Bhd. Malaysia
• Cadbury Confectionery Sales (M) Sdn. Bhd. Malaysia
• Cadbury Confy (Proprietary) Limited Botswana
• Cadbury CR, s.r.o. Czech Republic
• Cadbury Denmark ApS Denmark
• Cadbury Egypt For Importation L.L.C. Egypt
• Cadbury Egypt For Trade S.A.E. Egypt
• Cadbury Egypt Group For Food Industries Company S.A.E. Egypt
• Cadbury Egypt S.A.E. Egypt
• Cadbury Enterprises Holdings B.V. Netherlands
• Cadbury Enterprises Pte. Ltd. Singapore
• Cadbury Espana, S.L. Spain
• Cadbury Europe S.A. Switzerland
• Cadbury Financial Services United Kingdom
• Cadbury Food Co. Limited China China
• Cadbury Four Seas Company Limited Hong Kong
• Cadbury France France

Cadbury Ghana Limited Ghana Cadbury Holdings B.V. Netherlands Cadbury Hong Kong Limited Hong Kong Cadbury India Limited India Cadbury Industrial Espana, S.L. Spain Cadbury International & Leasing, S. de R.L. de C.V. Mexico Cadbury International Limited United Kingdom Cadbury Ireland Export Limited Ireland Cadbury Ireland Limited Ireland Cadbury Ireland Sales Ltd Ireland Cadbury Japan Ltd. Japan Cadbury Kenya Limited Kenya Cadbury Limited New Zealand Cadbury Limited United Kingdom Cadbury Mauritius Ltd Mauritius Cadbury Mexico Investments B.V. Netherlands Cadbury Morocco Morocco Cadbury Nederland B.V. Netherlands Cadbury Netherlands International Holdings B.V. Netherlands Cadbury Nigeria PLC Nigeria Cadbury Nominees Limited United Kingdom Cadbury Norway AS Norway Cadbury Pakistan Limited Pakistan Cadbury Polska Sp. z o.o. Poland Cadbury Portugal - Produtos de Confeitaria, Lda. Portugal Cadbury Pty Limited Australia Cadbury Russia Limited United Kingdom Cadbury Schweppes (Portugal) Sociedad Unipressoal, Lda. Portugal Cadbury Schweppes Finance plc United Kingdom Cadbury Schweppes France SAS France Cadbury Schweppes GmbH Germany Cadbury Schweppes Investments Ltd United Kingdom Cadbury Schweppes Ireland Limited Ireland Cadbury Schweppes Management Services (Pty) Limited South Africa Cadbury Schweppes Money Management plc United Kingdom Cadbury Schweppes Overseas Limited United Kingdom Cadbury Schweppes Treasury (Isle of Man) Isle of Man Cadbury Schweppes Treasury (UK) United Kingdom Cadbury Schweppes Treasury America Ireland Cadbury Schweppes Treasury International Ireland Cadbury Schweppes Treasury Services Ireland Cadbury Schweppes US Finance LLC Delaware United States Cadbury Schweppes Zimbabwe (Private) Limited Zimbabwe Cadbury Services SA Spain Cadbury Singapore Pte Limited Singapore Cadbury South Africa (Holdings) Limited United Kingdom Cadbury South Africa (Pty) Limited South Africa Cadbury South East Asia Limited Thailand Cadbury Stani Adams Argentina S.A. Argentina Cadbury Stani Adams Chile Productos Alimenticios Limitada Chile Cadbury Stimorol Danmark ApS Denmark Cadbury Sweden AB Sweden Cadbury Sweets Holdings B.V. Netherlands Cadbury Switzerland AG Switzerland Cadbury Three LLP United Kingdom Cadbury Trebor Bassett Services Limited United Kingdom Cadbury Wedel Sp. z o.o. Poland

Executive pay

In 2008 Todd Stitzer, Cadbury's CEO, was paid a £2,665,000 bonus. Combined with his annual salary of £985,000 and other payments of £448,000 this gives a total remuneration of over £4 million.^[58]

Accounting

In July 2007, Cadbury Schweppes announced that it would be outsourcing its transactional accounting and order capture functions to Shared Business Services (SBS) centres run by a company called Genpact, (a businesses services provider) in India, China, and Romania. This was to affect all business units and be associated with U.S. and UK functions being transferred to India by the end of 2007, with all units transferred by mid-2009. Depending on the success of this move, other accounting Human Resources functions may follow. This development is likely to lead to the loss of several hundred jobs worldwide, but also to several hundred jobs being created, at lower salaries commensurate with wages paid in developing countries.^[59]

Products

Main article: List of Cadbury products

Major chocolate brands produced by Cadbury include the bars Dairy Milk, Crunchie, Caramel, Wispa, Boost, Picnic, Flake, Curly Wurly, Chomp, and Fudge; chocolate Buttons; the boxed chocolate brand Milk Tray; and the twist-wrapped chocolates Heroes.

As well as Cadbury's chocolate, the company also owns Maynards and Halls, and is associated with several types of confectionery including former Trebor and Bassett's brands or products such as Liquorice Allsorts, Jelly Babies, Flumps, Mints, Dolly Mix, Black Jack chews, Trident gum, and Softmints.

Notable product introductions include:

• 1865: Cocoa Essence
• 1875: Easter Eggs
• 1897: Milk Chocolate and Fingers
• 1905: Dairy Milk
• 1908: Bournville
• 1915: Milk Tray
• 1920: Flake
• 1923: Creme Egg
• 1929: Crunchie
• 1938: Roses
• 1948: Fudge
• 1960: Dairy Milk Buttons
• 1968: Picnic
• 1970: Curly Wurly
• 1974: Snack
• 1983: Wispa (relaunched 2007)
• 1985: Boost
• 1987: Twirl
• 1992: Time Out
• 1995: Wispa Gold (relaunched 2009)
• 1996: Fuse
• 2001: Brunch Bar, Dream and Flake Snow
• 2009: Snow Bites
• 2010: Dairy Milk Silk and Dairy Milk Bliss
• 2011: BiscBits and Big Race

Advertising controversy

In May 2011 the model Naomi Campbell described the new advertisement for the Bliss bar as 'insulting and hurtful'. Reacting to the advertisement, which had the tag line Move over Naomi – there is a new diva in town, Campbell said, "I am shocked. It's upsetting to be described as chocolate, not just for me, but for all black women and black people. I do not find any humour in this."^[60] A spokesperson for the company insisted that the campaign was "a light-hearted take on the social pretensions of Cadbury Dairy Milk Bliss". The campaign was, he later added, "no longer in circulation... we have no plans to repeat the campaign."

Reacting to Campbell's outburst, comedian Reginald D. Hunter, on the BBC television comedy quiz Have I Got News For You, suggested that it was complimentary for black people to be compared to chocolate, and that enjoyment of the Bliss bar might even be enhanced by a love of black people.^[61]

Health and safety

2006 Salmonella scare

On 19 January 2006, Cadbury Schweppes detected a rare strain of the Salmonella bacteria, affecting seven of its products, said to have been caused by a leaking pipe. The leak occurred at its Marlbrook plant, in Herefordshire, which produces chocolate crumb mixture; the mixture is then transported to factories at Bournville and formerly Somerdale to be turned into milk chocolate.^[62]

Cadbury Schweppes officially notified the Food Standards Agency, shortly after which it recalled more than a million chocolate bars.^[62]

In December 2006, the company announced that the cost of dealing with the contamination would reach £30 million.^[63][64]

In April 2007, Birmingham City Council announced that it would be prosecuting Cadbury Schweppes in relation to three alleged offences of breaching health and safety legislation. An investigation being carried out at that time by Herefordshire Council led to a further six charges being brought.^[63] The company pleaded guilty to all nine charges,^[65][66] and was fined 1 million pounds at Birmingham Crown Court—the sentencing of both cases was brought together.^[67] Analysts have said the fine is not material to the group, with mitigating factors limiting the fine being that the company quickly admitted its guilt and said it had been mistaken that the infection did not pose a threat to health.^[67]

2007 recalls

On 10 February 2007, Cadbury announced they would be recalling a range of products due to a labelling error. The products were produced in a factory handling nuts, potential allergens, but this was not made clear on the packaging. As a precaution, all items were recalled.^[68]

On 14 September 2007, Cadbury Schweppes investigated a manufacturing error over allergy warning, recalling for the second time in two years thousands of chocolate bars. A printing mistake at Somerdale Factory resulted in the omission of tree nut allergy labels from 250 g Dairy Milk Double Chocolate bars.^[69]

2008

On 29 September 2008 Cadbury withdrew all of its 11 chocolate products made in its three Beijing factories, on suspicion of contamination with melamine. The recall affected the mainland China markets, Taiwan, Hong Kong and Australia.^[70] Products recalled included Dark Chocolate, a number of products in the 'Dairy Milk' range and Chocolate Éclairs.^[71]

2009 Hydrogenation

Cadbury continues to use hydrogenated oils in many of its signature products. Although trans fats are present, the nutrition labels round the values down to zero.^[72]

Headquarters

Cadbury's headquarters (Head Office UK) is the Cadbury House in the Uxbridge Business Park in Uxbridge, London Borough of Hillingdon, England.^[73] Cadbury occupies 84,000 square feet (7,800 m²) of space in its head office, which is Building 3 of the business park.^[74] Cadbury, who leases space in the building it occupies, had relocated from central London to its current head office.^[75]

Cadbury's previous head office was in 25 Berkeley Square in Mayfair, City of Westminster. In 1992 the company leased the space for £55 per 1 square foot (0.093 m²).^[74] In 2002 the company agreed to pay £68.75 per square foot. 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. As of that year the head office had 200 employees.^[76] After the Kraft Foods acquisition of Cadbury, Kraft announced that the Cadbury head office would remain the "Cadbury House."^[77]

See also

	London portal
	Companies portal
	Food portal

• Big Chocolate
• Cadbury World, Birmingham
• Cadbury World, Dunedin
• Eyebrows (advertisement)
• Gorilla (advertisement)
• Halls (cough drop)
• Stimorol

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Further reading

• Bradley, John (2008). Cadbury's Purple Reign: The Story Behind Chocolate's Best-Loved Brand. John Wiley and Sons Ltd. ISBN 9780470725245. 
• Cadbury, Deborah (2010). Chocolate Wars: The 150-Year Rivalry Between the World's Greatest Chocolate Makers. PublicAffairs. ISBN 9781586488208. 

External links

• Cadbury Australia
• Cadbury Ireland
• Cadbury New Zealand
• Cadbury United Kingdom
• Glass and a Half Productions website
• In-Depth: Kraft-Cadbury at Financial Times