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Posts Tagged ‘Cadbury’

Nestlé fends off Cadbury’s Kit Kat trade mark challenge

January 4th, 2013
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nestle-ukNestlé has won a long-running battle with Cadbury to trademark the distinctive shape of the four finger Kit Kat across the EU.

The board of appeal of the Community Trade Mark Office ruled that there was sufficient evidence to demonstrate that it was at least likely that the public exclusively associated the shape with Kit Kat.

The ruling went against Cadbury who argued that the trademark, which was originally registered by Nestlé in 2006, was invalid because the shape did not distinguish the product from those of rivals.

It follows a similar case last year, again involving Nestlé and Cadbury. On that occasion, it was Cadbury which won the right to trademark the purple colour of its Dairy Milk packaging.

“There is some irony in this decision given Cadbury was successful in defending a High Court challenge by Nestlé to register its distinctive shade of purple for milk chocolate last year,” said Lee Curtis, a trade mark lawyer at Harrison Goddard Foote.

“These decisions highlight how one can monopolise through trade mark registrations not only conventional trade marks such as words and logos, but more unconventional ones such as colours and the shape of a product or its packaging.

“Any aspect of a brand, product or its packaging can be registered as a trade mark providing it distinguishes your goods or services in the marketplace from those of others.”

Source: The Grocer

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Crème egg launches its fling-tatious personality

January 4th, 2013
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Cadbury_Creme_EggCadbury Creme Egg has returned with an integrated marketing campaign encouraging people to be impulsive and have a fling with Creme Egg during this year’s Creme Egg season, which ends 31 March.

The multimillion campaign, created by Fallon London spans TV advertising, digital and PR and highlights how Creme Egg’s limited season ignites some intense passions in people and invites fans to get their fix of their favourite Easter treat while they still can.

Five tongue-in-cheek, ten second TV ads depict a series of people showing their passion for Creme Egg and engaging in a little bit of romance with the brand while their flings last.

In one spot, a young man gives his reflection in a mirror a pep talk as he prepares to go out on the pull, in another, a girl is castigated by a friend for having a fling that she knows won’t last.

Other executions comprise a man sweet-talking an egg in the back of a rented limo, an earnest amateur artist who just wants to sketch his inamorata, and a romantic dinner for two.

Commenting on the activity, Cadbury Creme Egg brand manager, Stephanie Sarantakos, says, “This year will see Creme Egg return to its more playful side as we celebrate the nation’s favourite Easter treat. Due to its limited availability, we want to encourage fans to act spontaneously, give into their cravings and enjoy that moment of passion during the Cadbury Creme Egg season – it won’t last forever.”

Source: Sweets and Snacks Europe

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Winning sales with Team GB and Cadbury

June 1st, 2012
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To celebrate the Olympics, Cadbury is launching an on-pack promotion, entitled ‘You Win, if GB Wins’, set to bring to life the emotions and thrill of the London 2012 Games to consumers, in-store from 18th June through to 1st September.

‘You Win, if GB Wins’ features on five of Cadbury’s popular countlines: including Wispa, Cadbury Dairy Milk Caramel, Crunchie, Boost and Starbar.

The mechanic is easy; every pack contains a unique code on the inside of the wrapper which can be entered online at www.cadbury.co.uk or via text to receive a TeamGB and ParalympicsGB athlete’s name, an event that the athlete is competing in and the time of the final. The premise is simple if that athlete wins then so does the consumer. Anticipation is set high as each consumer has an average chance of 1/34 of receiving an athlete that is a medal winner.

Most exciting of all if a consumer’s athlete wins in the final they will receive a cash prize linked to the medal won by that athlete – £20 for a gold medal, £10 for a silver or £5 for bronze. This innovative promotion is set to bring to life the exhilaration of winning to consumers through the eyes of TeamGB and ParalympicGB athletes.

Furthermore, this on-pack promotion is supported by extensive in-store POS to drive excitement and sales for retailers. ‘You Win if GB Wins’ will be supported by a national outdoor, radio, and social media marketing campaign to generate awareness ahead of The Games.

Susan Nash, trade communications manager at Kraft Foods, comments, “We are extremely excited to announce this one-off promotion in support of arguably the greatest show on earth. It allows everyone to feel a part of the games by having a stake in who wins. With such a huge marketing campaign to support this on-pack promotion retailers should make the most of the high consumer awareness by stocking the limited edition bars. This is a culmination of three years of anticipation and we thank retailers for the support they have given the brand so far.”

Source: Sweets & Snacks

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Cadbury keeps production sweet

August 20th, 2011
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With origins stretching back more than 130 years, the Cadbury factory in Bournville manufactures products including Cadbury Dairy Milk, Creme Egg, Wispa and Roses. On 2nd February 2010, Cadbury became part of Kraft Foods.

The challenge

The Bournville site maintains a buffer stock of wrapped but unpackaged product for its Cadbury Roses and Heroes lines of assorted chocolate selections. This ‘buffer’ stock continually updates as it becomes the input for the subsequent production run.

The individual types of chocolates (or units) that make up these assortments had traditionally been stored separately in cardboard boxes. These boxes would then be emptied by hand for the purposes of packing into the finished Heroes or Roses product.

Because these boxes were emptied by hand, the health and safety regulations for maximum weight handling meant that units had to be stored in a large number of small boxes, rather than ‘polypans’ – industrial sized, specifically designed containers that move chocolates around automated parts of the factory.

This created an excessive use of cardboard boxes to store the individual units. With ten types of chocolates in Roses and seven in Heroes, and a maximum weight of 7kg per box, the buffer stock needed some 170,000 boxes at any one time.

The solution

In order to automate the process and eliminate cardboard box storage, Bournville began looking at the use of robots to feed in the different types of chocolates. Because the robots would be able to handle the polypans directly, the storage and unpacking of the boxes would be eliminated entirely.

However, it soon became apparent that the use of robots would mean very sophisticated control systems. In addition, the robots represented a very large investment of both time and money, so the confectionery manufacturer turned to WITNESS software from Lanner to simulate the processes that would be involved. A model was developed by the Bournville plant’s engineers to fully test and validate the options proposed.

Lanner’s Witness solution is a proven simulation system used by thousands of organisations to improve business process performance. WITNESS visually represents real world processes in a dynamic animated computer-generated model. The model then enables experimentation with alternative ‘what-if’ scenarios to identify the best solutions.

Beccy Smith, associate principal scientist at Cadbury explains, “Simulation was brought on board to validate the investment and make sure it would do what we needed it to. However, it was not just about proving the business case. The control logic for robots is incredibly complex and even something as seemingly simple as four robot arms soon develops a great deal of sophistication. That means time spent simulating and optimising the control logic can make a real difference to productivity.

“For example, the four robot arms each have six different ‘cell positions’ which are used for five full polypans and one set of empty polypans. The robot palletises and de-palletises these as required. It must balance the handling of the empty and full polypans to balance the flow of pallets. The delivery of the polypans on their pallets, via the conveyor systems from various points in the factory, forms part of this complex loop. And of course, this is all variable as production demands change.”

Witness excels at the quick modelling of large new manufacturing facilities. In this project the modelling of the initial design was completed quickly including a range of complex control logic. At that stage the real investigation began and the model was used heavily over a number of months to refine robot timing and sequences, conveyor delivery and full operational control.

The results

The use of Witness at Bournville has been a great success. The new robot introduction has eliminated wasteful manual processes. Smith explains, “We have gone from multiple cases of manual unloading of boxes to the single automatic tipping of polypans that carry 5.5 kg of chocolate. We have also reduced our cardboard usage and transport requirement enormously supporting our ‘Purple Goes Green’ policy.

“By simulating and optimising the new equipment and the associated processes prior to implementation we have ensured a streamlined efficient process, one that has been implemented smoothly.”

“The model is not finished either,” Smith adds,“There are always changes to be made, new trends and initiatives to follow and factors such as seasonal spikes in production to contend with. Simulation will be critical in helping us to plan and react in the future.”

Source: Confectionery Production

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Confectionery giants ‘push up prices’

October 9th, 2010
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Confectionery giants Nestle and Cadbury are increasing the recommended retail price of a number of their chocolate bars, it has been reported.

A rise of around seven per cent will take place on some of the companies’ bestselling bars, including Cadbury’s Dairy Milk and Wispa, and Nestle’s Kit Kat and Yorkie, the Grocer reports.

In 2007, when the economic downturn hit, prices were hiked for the first time.

There will be a 3p rise in Dairy Milk prices, meaning the bar is 30 per cent more expensive than it was three years ago.

“My worry is that chocolate is becoming a luxury item rather than an affordable treat,” one wholesaler told the news provider. “We are beginning to reach the point now where people consider small bars to be expensive and we are seeing sales through independents declining.”

“We have taken the decision to increase prices because of economic factors including ingredient costs,” said a Cadbury spokesman.

He denied Kraft Foods’ hostile takeover of the confectioner, which took place in February this year, has led to the rise in prices.

Source: Ingredients Network

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Exclusive chocolate bar from Cadbury

July 30th, 2010
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Confectionery giant Cadbury is launching a new limited edition flavour of its Dairy Milk Bar of Plenty.

Money from the sales of the confectionery bar will go towards Help the Hospices, which offers care and support to the terminally ill.

The bars will be on sale in either Honey Flakes or Caramelised Pecans flavours, which are combined with creamy Dairy Milk chocolate.

Luciana Andreoni, brand manager for Cadbury Dairy Milk, said: “As with the current Cadbury Dairy Milk Bar of Plenty flavours, Honey Flakes and Caramelised Pecans were the result of our researchers going through hundreds of recipes until the tastiest combinations were found…We’re sure Cadbury Dairy Milk fans will love the flavour and really get behind this cause.”

Recently, it was reported by Inside Facebook that Cadbury would be launching a new music game on the social media site, which would be aimed at promoting the confectioner’s products in Australia.

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Kraft CEO unperturbed by Buffett stake cut

May 28th, 2010
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cadbury-2The head of Kraft Foods said she was not concerned by top investor Warren Buffett’s decision to cut his stake in the U.S. food group after criticizing her acquisition of British chocolatier Cadbury.

The integration of Cadbury is on track and benefits from the $18.4 billion deal will become clear to shareholders, Chairman and Chief Executive Irene Rosenfeld told Reuters on Friday.

“I will say that for Mr Buffett as well as for all our shareholders, in the coming months we will continue to deliver against the targets we have laid for ourselves. These results will speak for themselves,” Rosenfeld said.

With a market value of $53 billion, Kraft, the maker of Oreo cookies and Philadelphia cream cheese, is the largest North American food maker and the world’s second biggest behind Nestle.

Kraft shares currently trade at about 12.5 times 2011 estimated earnings, below rivals such as Nestle’s 14.8 times, Hershey’s 17.4 times and General Mills’ 14.3 times.

Awaiting buffett’s congratulatory card

Buffett has said in the past that when a company made an acquisition he bought two greeting cards, a congratulatory card and a condolence card and waited five years to decide which card to send, Rosenfeld said.

“What I have said to him is that I am quite confident he will be sending me a congratulatory card and it will be in far less than five years,” she added.

Kraft bought Cadbury earlier this year after a hostile takeover battle that tested Rosenfeld’s leadership and created the world’s largest confectionery group.

The deal gives Kraft additional confectionery businesses which are growing faster than its core food and beverage brands like Maxwell House coffee and access to emerging markets like India.

Buffett’s Berkshire Hathaway previously owned 9.4 percent of Kraft, making it the largest shareholder. But since the beginning of the year Berkshire has sold down its stake to 106.73 million shares, giving it 6.1 percent of the shares in issue as at the end of April, according to regulatory filings and Reuters data.

Buffett said Rosenfeld had paid too much for Cadbury and called the recent sale of Kraft’s frozen pizza business to Nestle “particularly dumb.”

But Kraft has set a goal for at least $675 million of annual cost synergies from the deal by the end of the third year.

“We are well on our way to deliver those,” she said, adding the integration was “progressing extremely well” .

Meanwhile the sale of Cadbury’s Polish and Romanian businesses, which Kraft must sell for competition reasons, is likely to happen in the next six months, and there are a number of interested buyers, she added.

Earlier this month Kraft posted higher than expected first-quarter revenues, helped by the Cadbury acquisition and growth in emerging countries, but forecast 2010 earnings per share that were below analyst estimates, raising concerns over how smoothly Cadbury can be integrated.

Jobs

The Cadbury deal also means that Kraft’s global workforce of 98,000 employees will join Cadbury’s 45,000.

Rosenfeld acknowledged there would be redundancies but said the group would not commit to a global figure as decisions would be made country by country and left to the local managers.

In Britain Kraft’s handling of the takeover drew criticism after it said in February it would shut Cadbury’s Somerdale confectionery plant in western England with the loss of 400 jobs.

This decision came despite Kraft suggesting during the takeover battle that it might be able to keep the factory open. Kraft has committed not to make any further manufacturing redundancies for the next two years in Britain.

Happy with current portfolio

In March, Kraft completed the $3.7 billion sale of its pizza business to Nestle to help fund the Cadbury deal.

Asked if Kraft could exit other businesses, Rosenfeld said: “I feel very good about the portfolio today. I am quite confident the targets we have laid out for growth both for the top and bottom-line we can deliver with the portfolio as we know it today.”

She said she would continue to look at opportunities over time to ensure all assets contributed to the group’s growth.

Apart from integrating Cadbury, Kraft, like other food companies, has to grapple with soft consumer spending, rising commodity prices and volatile currencies.

It expects commodity costs to rise by between 1 and 2 percent this year but Rosenfeld said these costs should be manageable within the group’s overall plan.

Kraft, which now makes 51 percent of revenue outside North America, was also closely watching the currency situation in Europe, notably the weak euro.

Asked about consumer trends for the second quarter, she said: “In the second quarter we will see many of the same trends as we saw in the first around the world.”

Rosenfeld was in Paris for the start of building an biscuit research and development center in Saclay, Paris, where Kraft is investing 15 million euros. Kraft spends over 1 percent of its global turnover on R&D.

Kraft, which bought the biscuit business of Danone in 2007, is the global leader in the $60 billion biscuit market.

Source: Reuters

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New campaign to introduce Cadbury Crunchie Rocks

May 21st, 2010
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Cadbury's-CrunchieCadbury has launched Crunchie Rocks with an accompanying rock-themed media campaign.

The 145g share packs are already present in stores across the UK and are a combination of honeycomb pieces cornflakes tumbled in Cadbury milk chocolate.

The theme of the campaign encourages people to experience ‘that Friday Feeling’ – no matter what day of the week it is.

Kate Harding, trade communications manager at Cadbury UK says, “The launch of Cadbury Crunchie Rocks is a new addition to the Cadbury Bitesize portfolio, and an extension of the Crunchie brand.”

Also making a debut is a single 39g pack of CDM Caramel Nibbles and in June the company will be launching Wispa Duo. Both products will also be supported by media campaigns.

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Cadbury chocolate Fairtrade certified

February 12th, 2010
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cadbury_block_2Cadbury’s dairy milk chocolate will now sport a “Fairtrade” logo on its redesigned packaging, while retaining the smaller block size it switched to last year.

The confectionary maker would also increase the amount of cocoa solids in its product, from 21% to 26%.

All of the ingredients in the company’s nine Cadbury Dairy Milk products that could be certified “Fairtrade” would be, New Zealand managing director Matthew Oldham said.

The move follows widespread criticism of a decision in August last year to switch to using palm oil in its chocolate.

The firm started using palm oil as part of a cost-cutting exercise, which also saw the 150g and 250g bars shed about 20% of their weight.

Palm oil production was responsible for the rapid destruction of rainforest habitats and remained the single greatest threat to the existence of orangutans, and many other South East Asian wildlife species.

Though Cadbury only bought and used certified sustainable palm oil for the brief time it used it in its chocolate, the public had spoken – and wanted the palm oil out, Oldham said.

Cadbury responded to public outcry and changing back to the original recipe the new-look, logo-emblazoned chocolates would be on shelves in time for Easter, he said.

The smaller product size would remain.

The company’s use of Fairtrade product would help improve life for more than 40,000 Ghanaian cocoa farmers, who grew the beans the company used in its chocolate, Mr Oldham said.

Source : Reuters

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Cadbury: likely to have a positive future under Kraft

January 29th, 2010
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cadburyBritish confectioner Cadbury is likely to have a positive future under Kraft, according to a UK member of parliament.

In comments made to the Birmingham Post, Ken Clarke, the shadow business secretary, said that Kraft’s eagerness to secure a deal with the company meant the firm was “optimistic about the future of Cadbury”.

Kraft sold its American frozen pizza business to Nestle earlier in the month in order to improve its offer for Cadbury, kraft_llogowhich stands at over £11 billion. The current offer is thought to be worth around 850p per share.

Mr Clarke told the newspaper that if the deal goes through the UK government will then focus on saving jobs and the Cadbury factory at Bourneville, near Birmingham.

He said: “There comes a point when there is no point in reminiscing about the Quaker foundations of Cadbury, nor even getting too worked up about whether they should have been sold or not.”

One major shareholder of Cadbury Legal and General has already criticised the decision of Cadbury’s management to recommend the Kraft offer stating that it “fails to fully reflect the long-term value of the company.”

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