Executive summary

Cadbury is one of the most known brands in terms of taste and quality. It is a well known name
in the field of beverage industries. Created in 1824 through the merger of the company was
known as Cadbury Schweppes plc from 19692008 until its demerger, in which its global
confectionery business was separated from its US beverage unit (now called "Dr Pepper Snapple
Group"). It was also a constant constituent of the FTSE 100 from the index's 1984 inception until
its 2010 Kraft Foods takeover They have some limitations in their Cadbury company and they
are trying to overcome those limitation. They have some mission and vision to be a more
successful company in over the world.
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 Soft mints
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). 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. After
the Kraft Foods acquisition of Cadbury, Kraft announced that the Cadbury head office would
remain the "Cadbury House.

Introduction
Cadbury is a British confectionery company owned by Mondelz International Inc. and is the
industry's second-largest globally after Mars, Incorporated.[2] With its headquarters in Uxbridge,
London, England, the company operates in more than 50 countries worldwide.
The company was known as Cadbury Schweppes plc from 19692008 until its demerger, in
which its global confectionery business was separated from its US beverage unit (now called "Dr
Pepper Snapple Group").It was also a constant constituent of the FTSE 100 from the index's
1984 inception until its 2010 Kraft Foods takeover.

History of the Company

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'.
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 was 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
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land. As the Cadbury family were Quakers there were no pubs in the estate; in fact, it was their
Quaker beliefs that first led them to sell tea, coffee and cocoa as alternatives to alcohol.

19002007
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) (Crunchie was
originally launched under the Fry's name but later adopted by Cadbury's) and Roses (1938).
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.
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.

2007present
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. In addition, they

would source cocoa beans through Fair Trade channels. In January 2010 prospective buyer Kraft
pledged to honour Cadbury's commitment.

Kraft Foods takeover (2010)

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. Kraft
launched a formal, hostile bid for Cadbury valuing the firm at 9.8 billion on 9 November 2009.
Business Secretary Peter Mandelson warned Kraft not to try to "make a quick buck" from the
acquisition of Cadbury.
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.
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. Unite estimated that a takeover by Kraft could put 30,000 jobs "at risk", 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 Controversially, RBS,
a bank 84% owned by the United Kingdom Government, funded the Kraft takeover.
On 2 February 2010, Kraft secured over 71% of Cadbury's shares thus finalising the deal. 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.
On 9 February 2010, Kraft announced that they were planning to close the Somerdale Factory,
Keynsham, with the loss of 400 jobs. 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". 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.
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.

On 4 August 2011, Kraft Foods announced they would be splitting into two companies beginning
on 1 October 2012. Cadbury will be part of Mondelz International, Inc.

Objectives
Two types of objectives
Broad objective.
Specific objectives.

Broad objective:
To investigate the production system of Cadbury company.
Specific objectives:

To have a clear idea about total production process of Cadbury.

To identify different chemical which they use in their production.
To create a committee for identifying the problem.
To identify employees satisfaction of their company.
To ensure a hygienic and cold storages.

Methodology
There are two types which are shown below Primary data.
Secondary data.

Primary data:
Interview
Face to face conversation with the employee of cadbury co

Secondary data:
Internet
Books and publications
Newspapers

Limitations:

Cadbury does not offer any sort of incentive or discount to its retailers.
Cadbury target only young customers in their promotions.
Cadbury is not available in far off rural areas.
Cadbury is not considering many potential outlets like hotels, college canteens ect.

Cadburys production is really expansive because of the need to constantly develop new
products to meet the changing customers demands.

Body of the report

Mission Statement of Cadburys
Cadbury means quality; this is our promise. Our reputation is built upon quality; our
commitment to continuous improvement will ensure that our promise is delivered.
'Cadbury has established itself as a company of fairness and integrity, which always attempts to
operate as a socially responsible business'.

Chocolate Making of Cadbury

Cadbury makes a variety of chocolates but the two main products are Cadbury Dairy Milk
chocolate and Cadbury Old Gold dark chocolate.
The special taste and texture of Cadbury chocolate is based on long traditions of expertise in
chocolate recipe and processing methods unique to Cadbury. Techniques are improving all the
time and new technology enables the process to be highly tuned to consumer's evolving tastes
and preferences.
Chocolate production is a highly sophisticated, computer controlled process, with much of the
new specialist machinery being produced to Cadbury's own design and specification.

The Chocolate Making Process

Ingredients
Production starts at the Singapore cocoa factory where the top quality cocoa beans are processed
to produce the cocoa mass - which contains 53% cocoa and cocoa butter - the basis for all
chocolate products.

When chocolate is made, the 'mass' goes straight to the Cadbury factories in Victoria or
Tasmania.
Fresh full cream milk is collected and condensed and transported to the factories. Sugar is added
to the condensed milk with some of the cocoa mass, making a rich creamy chocolate liquid,
which is then evaporated to make milk chocolate crumb.
As these ingredients are cooked together, the special rich creamy taste of Cadbury chocolate is
produced. Each year, 22,000 tonnes of crumb is produced at Claremont to be made into
chocolate.
On arrival at the chocolate factory, the crumb is passed through a pin mill and mixed with cocoa
liquor and cocoa butter, as well as special chocolate flavouring. The amount of emulsifiers added
depends on the consistency of the chocolate required. Thick chocolate is needed for moulded
blocks, while a thinner consistency is used for assortments and covering bars.
Both milk and dark chocolate undergo the same final special production stages - refining,
conching and tempering - which produce the famous smoothness, gloss and snap of Cadbury
chocolate.
Conching involves mixing and beating the semi-liquid mixture to develop the flavour, removing
unwanted volatile flavours and reducing the viscosity and particle size.
Tempering is the final crucial and complex stage which involves mixing and cooling the liquid
chocolate under carefully controlled conditions to ensure that the fat in the chocolate crystallises
in its most stable form. Highly sophisticated machinery has been developed for this process,
which is one of the skills of the chocolatier.Tempered chocolate is used in a number of ways to
produce Cadbury's famous brands.
Blocks of solid chocolate, including bars with added ingredients such as nuts and raisins, are
known in the industry as 'moulded' products. Tempered chocolate is poured into bar-shaped
moulds, shaken and cooled, then the moulded blocks continue to high speed wrapping plants.
One of Cadbury's most recently-commissioned plants will potentially produce 700 blocks per
minute.

Chocolate Blocks
Cadbury Dairy Milk, Australia's favorite molded chocolate block is available in a wide range
sizes to suit all ages and occasions. Dairy Milk is also the main ingredient of other Cadbury
favourites such as Hazelnut and Fruit & Nut.Moulded blocks come in different sizes Large blocks - 250g and 350g, with even larger blocks for special occasions bought for sharing
or as a gift.

Small blocks - 100g and 50g bars to share

Snack and Treat size - small individual bars to enjoy as a small treat, including portion controlled
bars (99 Kcals).

Other Chocolate Processes

In products such as Crunchie bar, Cherry Ripe bar, or TimeOut bar, the chocolate covers a
centre filling. In a process called 'enrobing,' the centres pass on a continuous belt beneath a
curtain of liquid chocolate.
Assortments such as the boxed selection Cadbury Milk Tray or the twist-wrapped Cadbury
Roses are made either by the enrobing process or "shelling," where liquid chocolate is deposited
into a mould to form a shell. The centre filling is deposited in the shell, which is then sealed.
Another process involves "panning," where pieces of biscuit, raisin or caramel are coated with
chocolate in a revolving drum.
Shell Easter eggs are made by the shell moulding process while Cadbury has a unique process
for products like Cadbury Creme Eggs.

Chocolate Tastes around the World

Chocolate is made to a recipe, and is made with distinctive tastes and traditions in different
countries of the world.
Dark chocolate is the most popular chocolate in Europe, where chocolate has a higher level of
cocoa solids, giving it a much stronger flavour. Milk chocolate is the preferred choice in
Australia, while Americans favour dark chocolate with the smoky flavours of South American
beans.
Another important difference between the recipe traditions of European and UK chocolates is the
kind of milk used. European manufacturers use dried milk powder, often mixed with whey
powder. However Cadbury uses fresh milk - we believe that the very best milk chocolate is made
with fresh milk.

Findings
Cadbury became the leader of confectionery business worldwide
The company was able to hold about 26% of chewing gum market share in the global
market.
Cadbury Schweppes decided to demerge its business line by splitting the beverage and
confectionery business
By the late 1900s the company had over 26% of market share in the candy industry in
United States.
By the 2000s, Cadbury decided to demerge its business line by splitting the beverage and
confectionery business.
In 2008, the Schweppes became Dr Pepper Snapple Group (DPS) and the Cadbury was
bought by Kraft Foods.

Recommendation

Differentiatiation of product is needed that consumers are able to differentiate the

taste of their products.
Innovation is needed
Cadbury should invest in their R&D for better product outcome
Cadbury should concentrate on keeping the same ingredients in their products so that
they dont lose the existing customer base and in order to attract the new customer base,

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Conclusions
Cadbury International is a world renowned brand company, which operates almost all over the
world. They produce, one of best Chocolate in the world. Cadbury is a symbol of quality and
integrity, all over the world. Cadbury Company have good production systems, have large
amount of target customers in the whole world.

References

http://jas-researchpaper.blogspot.com/2010/11/cadbury.html
www.cadbury.co.uk
en.wikipedia.org/wiki/Cadbury

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