Cadbury, the latest convert to fairtrade, announced on Monday its plans for disbursing the first installment of its social premium. The funds, £500,000 ($751,215), will be invested in projects determined by the farmer cooperatives that supply the cocoa. One of the beneficiaries, the Kuapa Kokoo cooperative, will use its share to improve health services for its members through the deployment of mobile clinics and farmer extension services.
Kraft Buys Cadbury
Well, it is done, mostly. After opening its mouth a little wider than during its first attempt, Kraft is poised to swallow British chocolate maker Cadbury. Kraft had to increase its offer from 761p to 840p per share and add a 10p per share dividend. Last night, Cadbury’s chairman Roger Carr agreed to recommend to its shareholders to accept this offer.
Although it is still possible for Hershey to make a competing bid as was reported over the weekend, it is unlikely that it will match this offer which is right in line with what Cadbury shareholders expected. Besides, Kraft is about five times the size of Hershey.
Kraft Foods, the U.S. food products giant, has made a hostile bid to take over Cadbury Plc. after Cadbury’s board rejected a Kraft offer of £10.2 billion. Predictably, Cadbury’s share prices rose while Kraft’s fell as shareholders on the respective sides hope for a battle of bids. Kraft’s CEO implied that Cadbury had limited growth potential on its own while, in combination with Kraft, it would be part of a “global powerhouse” of snack foods and confectionery.
Cadburys Dairy Milk Chocolate Bars (Fair Trade)
According to Tim Newman’s blog entry at the International Labor Rights Forum, Cadbury has announced that it expand its sourcing of fairtrade cocoa beans. By 2010, all Dairy Milk bars sold in Canada, New Zealand and Australia will be fairtrade certified. That’s great news and a further sign of Cadbury’s commitment to improve the lives of cocoa farmers. I only wish that U.S. chocolate corporations would pledge the same instead of dodging the question.
This decision comes on the heals of its decision to discontinue the use of vegetable oil as a substitute for cocoa butter in Australia and New Zealand. Using cocoa butter not only makes the chocolate taste better, it also increased the amount of cocoa bought to make a bar. Cadbury is obviously on the right track. Maybe the current corporate leadership has discovered some of the company’s Quaker heritage.
Cadburys Dairy Milk Chocolate Bars (Fair Trade)
After promising to source fairtrade beans for its flagship Dairy Milk bar, Cadbury made good. On July 21, the first Fairtrade Dairy Milk bars started coming off the production line in Bourneville. Within days, these bars will appear in shops all over the UK and Ireland. It’s the first time that a mainstream chocolate brand has switched to fairtrade.
