The end of an institution Options

[lordtup]

A personal rant from the incumbent of Tup Hall .

Today , after a prolonged and bitter battle , Cadburys the British chocolate manufacturer passed into American hands courtesy of an extremely hostile take over by Kraft .

My Mother's family worked at the Bournville factory , Mother up to the outbreak of the 2nd WW her Brother before and after . Though the original business model has long disappeared into the corporate ethos , the village of Bournville remains much unchanged from the social vision that the Cadbury Brothers created for their employees . Indeed one stipulation was the restriction on the sale of alcohol ( being Quaker family ) so there so still no public houses within the parish boundary .The village green still remains an oasis in what is ostensibly Birmingham now .
Now with the future of the factory and the workforce in the hands of some financial guru from the other side of the world , I fear that another proud British institution will pass into hearsay .
Maybe it will not mean a lot to the readers of this posting , but one can't help feeling that if we are not careful we soon won't have anything left .

[Guest_Newbury Expat_*]

A personal rant from the incumbent of Tup Hall .

Today , after a prolonged and bitter battle , Cadburys the British chocolate manufacturer passed into American hands courtesy of an extremely hostile take over by Kraft .

My Mother's family worked at the Bournville factory , Mother up to the outbreak of the 2nd WW her Brother before and after . Though the original business model has long disappeared into the corporate ethos , the village of Bournville remains much unchanged from the social vision that the Cadbury Brothers created for their employees . Indeed one stipulation was the restriction on the sale of alcohol ( being Quaker family ) so there so still no public houses within the parish boundary .The village green still remains an oasis in what is ostensibly Birmingham now .
Now with the future of the factory and the workforce in the hands of some financial guru from the other side of the world , I fear that another proud British institution will pass into hearsay .
Maybe it will not mean a lot to the readers of this posting , but one can't help feeling that if we are not careful we soon won't have anything left .

Both of my parents' first job out of university in the 70's was working in the IT department (such as it was) at Bourneville. They recall the hideous smell but also the staff shop which provided many a bargain.

Sadly, Cadbury's have already changed significantly since the fond memory days especially following the tie up with Schweppes in the late 60's. Culturally, not sure what will happen now, but you can expect some cost cutting by way of job losses. Sad indeed.

By the way, I just have to say I'm glad it wasn't Hershey's who bought them. Their chocolate is foul and any change to that would leave me ranting!!

[Strafin]

I can't see anything good about this. Very sad.

[GMR]

i agree, a said moment. I wouldn't be surprised if they swallowed up the company and changed its name.

Doesn't it have to be put to the shareholders first before it is a done deal?

[Strafin]

I think so, but it's a hostile takeover so they don't really get a choice.

[GMR]

I think so, but it's a hostile takeover so they don't really get a choice.

Thanks; that is what I thought.

[Guest_Newbury Expat_*]

i agree, a said moment. I wouldn't be surprised if they swallowed up the company and changed its name.

Doesn't it have to be put to the shareholders first before it is a done deal?

Well, the name will be changed from an organizational point of view (at the best it will be Cadbury's, a division of Kraft foods), but the brand name will be unchanged. You won't be buying a bar of Kraft Dairy Milk (sounds revolting) as they are buying the name as much as anything and that brand has huge market value.

[GMR]

Well, the name will be changed from an organizational point of view (at the best it will be Cadbury's, a division of Kraft foods), but the brand name will be unchanged. You won't be buying a bar of Kraft Dairy Milk (sounds revolting) as they are buying the name as much as anything and that brand has huge market value.

In theory but a lot of foreign buyers have changed the original names.

[Guest_Newbury Expat_*]

In theory but a lot of foreign buyers have changed the original names.

It happens sure, but I'd be very surprised if the name Cadbury's is dropped from any marketing aspect. It would overnight lose Kraft hundreds of millions of dollars, such is the value of the brand and I can't see it happening.

Kraft are particularly big on keeping brands, even niche brands. An example I'd highlight as pertinent as a British institution (though obviously on a far smaller scale) is Terry's chocolate orange. Was uniquely British for decades but now sadly no longer made in England. The brand name though has not only remained but been expanded. Not sure how much Cadbury's as a brand could expand but it goes to my point that we are extremely unlikely to see the end of the Cadbury's name.

According to brand valuation specialists Intangible Business the value of the Dairy Milk brand alone in 2006 was half a billion quid:
http://www.intangiblebusiness.com/Brand-se...brands~349.html

To Lord's post though it is a sad day and unfortunately my chocolatey example only goes to show what's at risk from a jobs standpoint, branding regardless.

[TallDarkAndHands...]

In theory but a lot of foreign buyers have changed the original names.

I used to enjoy a Marathon....

[Biker1]

I heard that Kraft intend to keep the Keynsham factory open whereas Cadbury were going to close it so not all bad if this is true.

[dannyboy]

It happens sure, but I'd be very surprised if the name Cadbury's is dropped from any marketing aspect. It would overnight lose Kraft hundreds of millions of dollars, such is the value of the brand and I can't see it happening.

Kraft are particularly big on keeping brands, even niche brands. An example I'd highlight as pertinent as a British institution (though obviously on a far smaller scale) is Terry's chocolate orange. Was uniquely British for decades but now sadly no longer made in England. The brand name though has not only remained but been expanded. Not sure how much Cadbury's as a brand could expand but it goes to my point that we are extremely unlikely to see the end of the Cadbury's name.

According to brand valuation specialists Intangible Business the value of the Dairy Milk brand alone in 2006 was half a billion quid:
http://www.intangiblebusiness.com/Brand-se...brands~349.html

To Lord's post though it is a sad day and unfortunately my chocolatey example only goes to show what's at risk from a jobs standpoint, branding regardless.

Rowntree Mackintosh......

[Exhausted]

Yet another manufacturing process or organisation to leave these shores. Not much left for us these days, even our water company has foreign ownership. We can't build ships, we can't make cars, we can't operate a call centre and now it seems we can't make chocolate.

[blackdog]

Yet another manufacturing process or organisation to leave these shores. Not much left for us these days, even our water company has foreign ownership. We can't build ships, we can't make cars, we can't operate a call centre and now it seems we can't make chocolate.

The only thing leaving the shores is the top level management - we will be making chocolate for a long time yet.

We could make everything on the list if we were prepared to earn less while doing it.

[Hugh Saskin]

The only thing leaving the shores is the top level management - we will be making chocolate for a long time yet.

I wouldn't bet on it:

http://www.independent.co.uk/news/uk/this-...way-509122.html

[JeffG]

I heard that Kraft intend to keep the Keynsham factory open whereas Cadbury were going to close it so not all bad if this is true.

That was Fry's of course, before they were taken over by Cadbury.

now it seems we can't make chocolate.

That's been the case for quite a while. Eaten a Mars bar recently? I remember when it used to be coated with real chocolate and had a decent centre.

[Bloggo]

I hope that no smart a**se marketing bod decides to change the recipe of Cadburys dairy milk as in my opinion it is the best chocolate in the world.
It is a pity that the quintessential British brands and products are slowly disappearing.
Is it because our workforce charge too much for their labour?

I worry that British Airways will be the next to go down the tubes with the threat of more militant action being muted.

[TallDarkAndHands...]

I hope that no smart a**se marketing bod decides to change the recipe of Cadburys dairy milk as in my opinion it is the best chocolate in the world.
It is a pity that the quintessential British brands and products are slowly disappearing.
Is it because our workforce charge too much for their labour?

I worry that British Airways will be the next to go down the tubes with the threat of more militant action being muted.

All Manufacturing in Britain will cease to exist soon. We will become a purely Service industry Country. The reason for this is because we cannot compete in the Labour market with other Countries and we live in a globalised world where economies of scale means it is still cheaper to manufacture a product elsewhere and send it 1/2 way round the World on Container ships that it is to Manufacture it in Blighty.

We have a choice. Move with the times or cling on to a rather English romantic notion of the way it used to be. The only other option is to start putting up trade embargos and this would be a recipe for disaster.

[theone09]

I wonder if Kraft will make some name changes

Cadbury's chocolate orange
Cadbury's Daim
Cadbury's Toblerone

and other Kraft chocolates?

[Andy]

I just hope they don't mess with the Green & Black's brand.