Kraft’s CEO on why it bought Cadbury’s

The Kraft Foods / Cadbury’s takeover was, and remains, an important business studies case study.  Here is a short interview which the CEO of Kraft Foods has recently given to the BBC where she explains the key strategic rationale behind the takeover.  Lots of great business studies terminology in this short clip:

Key points I jotted down were:

Why buy Cadbury’s:
Iconic portfolio of products and brands
Adding market share of chocolate confectionery
Adding chewing gum brands to the Kraft portfolio
Expansion into emerging markets
Cadbury expertise in “immediate consumption” channels (e.g. petrol stations, newsagents)

Jobs?
Global business = the need to remain competitiveness
Therefore cannot commit to retain existing Cadbury employees for more than two years

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