FMCG News South Africa

Kraft to shut Cadbury factory in western England

LONDON, UK: US giant Kraft Foods said that it will shut a Cadbury factory in western England after clinching a successful takeover of the British confectionery company earlier this month.

Kraft said in a statement that the closure of a plant in Somerdale, near Bristol, had already been put in place by Cadbury, prior to the takeover that was clinched at the start of February.

"Kraft Foods today announced that following extensive talks with senior management at Cadbury, it has reluctantly accepted that Cadbury plans to close the Somerdale manufacturing facility in Keynsham, near Bristol are so far advanced that it is unrealistic to reverse them," Kraft said.

"Regrettably, the company has now confirmed that the Somerdale plant will close by 2011 in line with the plans already put in place by Cadbury."

Unite, Britain's biggest trade union, reacted angrily and said the closure would result in 400 jobs losses at the factory which produces Crunchie and Curly Wurly chocolate bars.

Kraft boss Irene Rosenfeld sealed the Cadbury takeover in the teeth of fierce opposition and concerns about the several thousand staff employed in eight Cadbury factories in Britain and Ireland.

"In our recent talks with Cadbury senior management, it became clear that it is unrealistic to reverse the closure programme, despite our original intent to do so," Rosenfeld said in Tuesday's statement.

"While this is a difficult decision, we have moved quickly to end any further uncertainty."

In reaction, Unite expressed deep anger at the conduct of Cadbury's new owner.

"It is with great anger that we heard today's announcement by Kraft that the Somerdale closure will go ahead as planned," said Jennie Formby, Unite's national officer for food and drinks sector.

"This sends the worst possible message to the 6,000 other Cadbury workers in the UK and Ireland," Formby said.

"It tells them that Kraft care little for their workers and have contempt for the trade union that represents them."

Kraft's takeover ended Cadbury's 186-year history as an independent British company, whose top-selling products include Dairy Milk chocolate bars, Creme Eggs and Trident chewing gum.

Cadbury's stock market listing will be cancelled on 8 March when it will be re-registered as a private company.

Source: AFP

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