Wednesday, March 28, 2007

Chocolate merger ?

From Forbes:

When Cadbury Schweppes confirmed earlier this month that it planned to break itself into two sugary pieces, separating its confectionery and soft drinks businesses, Chief Executive Todd Stitzer said he wanted to build "the biggest and best confectionery company in the world."

The U.K. candy and soft drinks company may achieve that through buying the U.S.'s largest chocolate company.

Hershey acquired the license to manufacture and sell Cadbury products in the U.S. in 1988 after Cadbury failed to make any headway in the U.S., mainly because of sales and distribution difficulties.

If Cadbury bought Hershey, it would be able to take back the North American rights to these brands. However, if Hershey were sold to a third party, Cadbury would regain the rights to these brands in any case.

While Cadbury is a major player in the U.K. chocolate confectionery market, its international business has been built primarily on sugar confectionery, and the British company may want to redress that balance in the U.S.

Would a merger such as this help the Smiths Falls situation ... who knows... but it appears Hershey is steadfast in it's plans .... so a change in management surely could not bring any worse news !!

1 comment:

Clive said...

Hmmm ... could Cadbury maybe acquire a working plant and distribution network in a friendly arrangement with their current partner? Might work well for everyone. C'mon Cadbury, come to Smiths Falls.....