Kraft to Acquire Cadbury

Sweet Deal Solidifies Global Offering, Creating $50 billion company

Talk about the competitive advantage of scale, Kraft may have sold DiGiorno and Tombstone to help finance the deal, but will command 15% of the world’s market of confections.

While with the new acquisition Kraft will still trail Mars in the category, it will undoubtedly allow Kraft to continue to see growth in both emerging markets and convenience channels, as well as existing retail and grocery channels. But how big is big enough? Does the company (and brand) associated in the US as the “Cheesiest” have  a right to play in the sweets category? Does instant consumption confection have a place within a portfolio of otherwise healthy products and brands?

Kraft Foods Corporate Webite
Cadbury Corporate Website
Cadbury Investor Microsite
Advertising Age Article

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