TODD STITZER, chief executive of Cadbury, has signalled his support for a possible tie-up with Hershey, declaring the US confectioner would be a much better cultural fit with the British chocolate maker than Kraft, the food conglomerate launching a hostile bid.
Hershey, which has owned the licence for the Cadbury brand in the US since 1988, is contemplating a bid for Cadbury after Kraft’s decision to go hostile earlier this month. If Hershey can finance the bid, it is likely to make a friendly offer.
In an interview, Mr Stitzer said the ethical values supporting the Cadbury brand – founded by Quakers who marketed tea, coffee and cocoa drinks as an alternative to alcohol – were similar to those of Hershey. “Both companies were founded by men of principle and vision who created company towns and supported charitable causes,” he said.
Mr Stitzer suggested Cadbury’s values, which he said included Fairtrade certification for some brands, could be lost if it were bought by Kraft, better known for processed cheese, instant coffee and bacon brands. “I think there’s a worry that in a much larger, less focused organisation that those values don’t get nurtured in the right way,” he said.
There is no sign a counter-offer from Hershey will be forthcoming. Kraft went public with a £10.2 billion (€11.2 billion) cash-and-stock offer for Cadbury in September.
Cadbury shares closed up 3p at 806p, Kraft’s were at $26.67.
– (Copyright The Financial Times Limited 2009)
