Marketing - Written by David Howells on Monday, May 23, 2011 12:19 - 0 Comments
MPs express further concern over Kraft’s plans for Cadbury
Kraft, the American multi-national which bought Cadbury in February 2010, has come under more fire from MPs for moving the brand’s marketing function to Zurich.
The latest marketing news has reported the publication of a report by the Business, Innovation and Skills Committee which questions Kraft’s previous pledges to manage Cadbury brands from within the UK.
Titled ‘Is Kraft Working For Cadbury?’, the report contains MPs “significant concerns” that Kraft is working in a manner that is dismissive to the UK and in breach of the terms of the takeover, even suggesting that Kraft’s attitude had “steered close to a contempt of the house.”
Relationships between the Kraft and the UK have been fractious at best, following the immediate closure of a manufacturing site in Somerdale after the takeover, despite promises to the contrary, and Kraft Chairman and CEO Irene Rosenfeld’s ongoing refusal to appear for questioning in front of the committee.
The report’s conclusion, as reprinted in Marketing Week, reads: “So far, Kraft appears to have honoured most of the spirit and letters of the undertakings that it gave to the previous Business, Innovation and Skills Committee, although we are concerned about the upcoming pay harmonisation and the shift of marketing management to Zurich.”
“However understandable th latter might be, it does not sit entirely comfortably with the commitments to manage brands out of the UK.”
In a brief response to the claims, a Kraft spokesperson told BBC News, “The facts show that we have been a good steward of Cadbury.”
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