1800–1900: Early history On 4 March 1824,
John Cadbury, a
Quaker, began selling
tea,
coffee and drinking
chocolate in Bull Street in
Birmingham, England. From 1831, he 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. In 1842, he started selling chocolate for eating, perhaps the first in Britain. In 1847, John Cadbury became a partner with his brother Benjamin and the company became known as "Cadbury Brothers". The Cadbury brothers opened an office in London, and, in 1854, they received the
royal warrant as manufacturers of chocolate and cocoa to
Queen Victoria. In 1861, the company created Fancy Boxes (a decorated box of chocolates) and, in 1868, they were sold in boxes in the shape of a heart for
Valentine's Day. Boxes of filled chocolates quickly became associated with the holiday. By 1893, Cadbury had 19 different varieties of chocolate Easter egg on sale. In 1891, the Cadbury brothers filed a patent for a
chocolate-coated biscuit. In 1893, George Cadbury bought 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 314 cottages and houses set on of land. As the Cadbury family were
Quakers, there were no
pubs in the estate. In 1899, Cadbury was incorporated as a
private limited company at the
Companies House in London. From the beginning, it had the distinctive purple wrapper.
George Cadbury handed over two company-owned buildings for use as hospitals – "The Beeches" and "Fircroft", and the management of both hospitals earned the War Office's highest award. . It was operated by Cadbury between 1911 and 1961, to process locally collected milk and produce "chocolate crumb" which was transported to Cadbury's in Bournville. In 1919, Cadbury merged with Fry's, resulting in the integration of well-known brands such as
Fry's Chocolate Cream and
Fry's Turkish Delight. Roses has become a very popular Christmas (and Mother's Day) gift. By the mid-1930s, Cadbury estimated that 90 percent of the British population could readily afford to buy chocolate as it was no longer considered a luxury item for the working classes. By 1936, Dairy Milk accounted for 60 per cent of the UK milk chocolate market. During the Second World War, 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 1950, and normal production resumed. Cadbury subsequently invested in new factories and had an increasing demand for their products. In 1952 the
Moreton factory was built. In 1967, Cadbury acquired an Australian confectioner,
MacRobertson's, beating a rival bid from
Mars. As a result of the takeover, Cadbury built a 60 per cent market share in the Australian market.
Schweppes merger (1969) Cadbury merged with drinks company
Schweppes to form Cadbury Schweppes in 1969. Head of Schweppes,
Lord Watkinson, became chairman, and
Adrian Cadbury became deputy chairman and
managing director. The merger put an end to Cadbury's close links to its Quaker founding family. , Birmingham, England In 1978, the company acquired
Peter Paul, the third largest chocolate manufacturer in the United States for $58 million, which gave it a 10 per cent share of the world's largest confectionery market. The successful
Wispa chocolate bar was launched in the North East of England in 1981, and nationwide in 1984. In 1982, trading profits were greater outside of Britain than in the UK for the first time. This saw the company divest itself of such brands as
Typhoo Tea,
Kenco,
Smash and
Hartley Chivers jam. while it purchased the French business
Choclat Poulain in the same year. In 1992, company chairman Sir
Adrian Cadbury produced the
Cadbury Report (via the Cadbury committee set up by the
London Stock Exchange), a code of best practice which served as a basis for reform of
corporate governance around the world. In 1995, Cadbury Schweppes acquired
Dr Pepper/Seven-Up Companies. In 1999, Cadbury Schweppes sold its worldwide beverage businesses to
The Coca-Cola Company except in North America and continental Europe for $700 million. In the same year, the company purchased
E. Wedel and their factory in Praga, from PepsiCo for
US$76.5 million.
Snapple, Mistic and
Stewart's (formerly Cable Car Beverage) were sold by
Triarc to Cadbury Schweppes in 2000 for $1.45 billion. In October of that same year, Cadbury Schweppes purchased
Royal Crown from Triarc. In 2003, Cadbury Schweppes acquired Adams, the US chewing gum operations of
Pfizer Inc., for $4.2 billion, making Cadbury the world's biggest confectionery company. In 2005, Cadbury Schweppes acquired
Green & Black's for £20 million.
Schweppes demerger In March 2007, it was revealed that Cadbury Schweppes was planning to split its business into two separate entities: one focusing on its main chocolate and confectionery market; the other on its US drinks business. The demerger took effect on 2 May 2008, with the drinks business becoming
Dr Pepper Snapple Group and Cadbury Schweppes
plc becoming Cadbury plc. In December 2008 it was announced that Cadbury was to sell its Australian beverage unit to
Asahi Breweries.
2007–2010 In October 2007, Cadbury announced the closure of the
Somerdale Factory, in
Keynsham, Somerset, formerly part of Fry's. Between 500 and 700 jobs were affected by this change. Production transferred to other plants in England and Poland. In 2008, Monkhill Confectionery, the Own Label trading division of Cadbury Trebor Bassett was sold to
Tangerine Confectionery for £58 million. This sale included factories at Pontefract, Cleckheaton and York and a distribution centre near Chesterfield, and the transfer of around 800 employees. 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 in both Australia and New Zealand, with consumers objecting to both the taste from the cheaper formulation, and the use of palm oil given its role in the destruction of rainforests. By August 2009, the company announced that it was reverting to the use of cocoa butter in New Zealand and Australia, although palm oil is still listed as an ingredient in Cadbury's flavoured sugar syrup based fillings (where it referred to as 'vegetable oil'). In addition, Cadbury stated it would source cocoa beans through
Fair Trade channels. In January 2010 prospective buyer Kraft pledged to honour Cadbury's commitment.
Acquisition and subsidiary (2009–2023) On 7 September 2009,
Kraft Foods made a £10.2 billion (US$16.2 billion) hostile 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. The UK
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 Hershey Company, based in
Pennsylvania, manufactures and distributes Cadbury-branded chocolate (but not its other confectionery) in the United States and has been reported to share Cadbury's "ethos". Hershey had expressed an interest in buying Cadbury because it would broaden its access to faster-growing international markets. But on 22 January 2010, Hershey announced that it would not counter Kraft's final offer. The acquisition of Cadbury faced widespread disapproval from the British public, as well as groups and organisations including trade union
Unite, 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. exhibition at the
Library of Birmingham, July 2016. A tribute to
Shakespeare (born 22 miles (35 km) south east of the city), the miniature
Shakespeare's Globe theatre (left) and a manuscript are made from Cadbury chocolate. 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, and the company announced that Cadbury shares would be de-listed on 8 March. On 3 February, the Chairman
Roger Carr, chief executive
Todd Stitzer and chief financial officer Andrew Bonfield all announced their resignations. Stitzer had worked at the company for 27 years. On 9 February, Kraft announced that it was 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 Cadbury
Gorilla advertisement, announced his plans to leave the Cadbury company in July following Kraft's takeover. . The
European Commission decided that Kraft would have to divest Cadbury's confectionery businesses in Poland (Wedel) and Romania (Kandia). In June 2010, the Polish division, Cadbury-Wedel, was sold to
Lotte of Korea. As part of the deal Kraft kept the Cadbury, Hall's and other brands along with two plants in
Skarbimierz. Lotte took over the plant in
Warsaw along with the
E Wedel brand. Kandia was sold back to
the Meinl family, which had owned the brand from 2003 to 2007. On 4 August 2011, Kraft Foods announced it would be splitting into two companies beginning on 1 October 2012. The snack and confectionery business of Kraft became
Mondelez International, of which Cadbury would become a subsidiary. In response to diminishing margins in early 2014, Mondelez hired
Accenture to implement a US$3 billion cost-cutting programme of the company's assets including Cadbury and
Oreo. Beginning in 2015, Mondelez began closing Cadbury factories in several developed countries including Ireland, Canada, the United States, and New Zealand and shifting production to "advantaged" country locations like China, India, Brazil, and Mexico. The closure of Cadbury factories in centres such as
Dublin,
Montreal,
Chicago,
Philadelphia, and
Dunedin in New Zealand generated outcries from the local populations. The plan received approval from several market shareholders including the Australian and New Zealand banks
Westpac and
ASB Bank. In January 2017, Cadbury became the official snack partner of the
Premier League, and sponsored the
Premier League Golden Boot and
Premier League Golden Glove awards.
200th anniversary: 2024–present On 8 January 2024,
Mondelez International announced plans to celebrate the 200th anniversary of Cadbury, including: promotions, celebrations, and seven retro packaging designs for its Cadbury Dairy Milk bars. On 17 March 2024, Cadbury celebrated their bicentenary by unveiling their newly refurbished UK archive. The new archive which cost £350,000, documents over 50,000 Cadbury items including; packaging history, artworks, and discontinued products. With Mondelēz International planning on opening the archive to the public at a later date. On 23 December 2024, it was announced that after 170 years of its association with the
British monarchy, since the reign of
Queen Victoria, Cadbury would now no longer hold its
Royal Warrant under
King Charles III. While no reason was given, the King had been urged by campaign group B4Ukraine to withdraw warrants from companies "still operating in Russia" after the
invasion of Ukraine, with Mondelez and consumer goods firm
Unilever (who also lost its royal warrant) among those named. == Operations ==