Acquisition of Cadbury by Kraft: How Sweet is this Deal?

Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : FINC076
Case Length : 18 pages
Period : 2010-2011
Pub. Date : 2012
Teaching Note : Available
Organization : Kraft Foods, Inc.; Cadbury Plc.
Industry : Food
Countries : Global; US; Europe

To download Acquisition of Cadbury by Kraft: How Sweet is this Deal? case study (Case Code: FINC076) click on the button below, and select the case from the list of available cases:

Finance | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies

Pay through PayPal

Amount to be paid:

Prefer to pay in another currency ?
Select Currency for Payment

Exchange Rates: Click Here
Delivery Details: Click Here


For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Finance Case Studies
Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Area Specific Case Studies
Industry Wise Case Studies
Company Wise Case Studies

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

Background Note

Kraft was founded in 1903 as J.L. Kraft & Bros. After a number of mergers and acquisitions, J.L. Kraft & Bros became Kraft General Foods.

In 1995, during restructuring, Kraft and General Foods were amalgamated into Kraft Foods6, Inc and Kraft General Foods International became a subsidiary of Kraft Foods, Inc, which was renamed Kraft Foods International, Inc.

In 2001, Philip Morris offered an 18.1% stake in Kraft Foods Inc. to the public and the shares were listed on the New York Stock Exchange for public trading. The same year, Philip Morris put forward a proposal for a change in name to the Altria Group, Inc.

Finance | Case Study in Management, Operations, Strategies, Finance, Case Studies

The proposal was accepted and the name was changed in 2003. In March 2007, the Altria Group spun off Kraft and, as a result, Kraft began to trade as a fully independent company. In 2007, Kraft acquired the Paris-based global biscuit group Danone. The acquisition of Danone's business added a lot of diversity to Kraft...

The company was established in 1879 when John Cadbury (John) and his brother Benjamin began to sell chocolate drinks and solid chocolates in Bournville village. From inception till the year 1990, the company grew rapidly and expanded its business the world over. About the company and its products, Franklin Allen, professor of finance at the University of Pennsylvania's Wharton School, commented, "Cadbury "is just in the blood" in Europe, and especially in England."7

During the 1960s, the company expanded its business rapidly. During this period, Cadbury established new technologies and set up specialized plants for milk and cocoa bean processing in the UK. In 1969, it merged with Schweppes Limited to form Cadbury Schweppes plc. Schweppes Limited was a drink maker. During the year 1980, the company became one of the largest confectionery groups.

In 1995, the company turned into a leading independent bottler in the US after acquiring Dr Pepper/Seven Up Inc at US$1.7 billion. In 1999, Cadbury Schweppes acquired Hawaiian Punch, America's leading fruit punch brand, from the Procter & Gamble Company for US$203 million (126m). In 2003, Cadbury Schweppes acquired the US-based Adams chewing gum business for US$4.2 billion and became the world's number two chewing gum manufacturer. In the same year, it invested about 500 million in a small number of targeted bolt-on acquisitions in emerging markets and in brands with strong growth potential...

Excerpts - Next Page>>

6] Company history,
7] David Lieberman and Matt Krantz, "Is Kraft's $19B Cadbury Buy a Sweet Deal? Buffett has Doubts,", January 20,2010.

Custom Search

Marketing Financial Products
Textbooks Collection

Case Studies in Finance Volume-IV
Work Book - Rs. 750
Workbooks Collection

Case Studies in Finance Vol III

Case Studies in Finance Vol III
e-Book on Case Studies in Finance

Case Study Volumes Collection

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.