Kraft and Cadbury: Cultural Meltdown or Company Showdown?
Posted by Sue Perlmutter on Wed, Sep 23, 2009 @ 09:15 PM
Reading all the recent banter about Kraft and Cadbury not only unleashes my undying sweet tooth, it also gets my cultural molecules spinning. This potential acquisition, written about almost daily in the past few weeks, involves far more than simply the wisdom of connecting two companies. For one thing, on a personal level, it arouses passionate debate by virtue of its connection to chocolate, that addicting and magical substance 
which has captivated us for centuries. Taste, so much a part of our emotional and cultural DNA profile, is significantly shaped by our surroundings, as any global marketing team will attest. Nations do, in fact, have their own very distinct chocolate preferences, some of them surprising. Judging from all the ruminations on the hugely nostalgic powers of Cadbury, and the attendant bashing of Hershey's, the brand Cadbury aficionados love to hate, the U.S. and U.K., never mind Kraft and Cadbury, could probably go to battle on this culturally sensitive matter alone.
Indeed, cultural preferences are at stake here, but so are corporate culture differences. How ironic, then, that Cadbury is now headed by Todd Stitzer, a "preppy New York lawyer,"* in the words of a Financial Times writer. Nevertheless, its company culture continues to run deep, and like so many organizations who entered early in the chocolate industry -- Fry's, Rowntree, and Hershey's as prominent examples -- its roots were philanthropic, perhaps further feeding into the nostalgia factor. Kraft, meanwhile, whose "tanks rolled on to Cadbury's well-tended Bournville lawns,"* is viewed as the U.S. behemoth ready to devour Cadbury's, despite recent rebranding efforts and cries to the contrary. There is a bright spot, though, and again, an ironic twist. Under Stitzer's reign, with one of the company's factories in Keynsham, England, about to shut down and move to Poland, and with Kraft promising to keep it open if the acquisition materializes, there are some in the U.K. now hoping the "white knight" from across the pond will in fact prevail.*
With rumors swirling about almost daily as to new tactics, potential suitors and sweeter offers, this emotionally and culturally infused topic will be one to watch closely -- perhaps with some "neutral" Swiss chocolate in hand.
*http://online.wsj.com/article/SB125245727048594365.html
*http://www.ft.com/cms/s/3/756b0108-a752-11de-9467-00144feabdc0.html
*http://www.ft.com/cms/s/0/2554c0f2-a322-11de-ba74-00144feabdc0.html?nclick_check=1