Is Kraft working for Cadbury? - Business, Innovation and Skills Committee Contents

6  Concluding comments

67.  So far, Kraft appears to have honoured most of the spirit and letter of the undertakings that it gave to the previous Business, Innovation and Skills Committee, although we are concerned about the upcoming pay harmonisation and the shift of marketing management to Zurich. However understandable the latter might be, it does not sit entirely comfortably with the commitments to manage brands out of the UK.

68.  We are encouraged, however, by the recruitment that Kraft is undertaking, by its commitment to research in the UK and by its wish to "invest its way to profitability".[85] Whilst Kraft did not extend its undertakings on jobs, the strong indication to us was that the extent of investment at Bournville and other sites would only make sense alongside retention of employment levels in the UK. We trust that our interpretation is correct. If it is not, we shall expect any change in the position to be made public by Kraft at the earliest opportunity.

69.  Our overall conclusion, therefore, is that, while there remain some significant concerns about Kraft takeover of Cadbury, a number of positive signs may be beginning to emerge. Those positive messages would have been considerably more convincing if conveyed directly to bodies such as ourselves from the top of the organisation. As for the future, Kraft's witnesses asked us to judge Kraft on its deeds.[86] We shall.

85   Q 123 Back

86   Qq 81 and 134 Back

previous page contents next page

© Parliamentary copyright 2011
Prepared 23 May 2011