Rumours abound as Cadbury looks to chocolate market

By Catherine Boal

- Last updated on GMT

Related tags Advertising Chocolate Cadbury

News that Cadbury may be on the verge of selling off its beverages
arm has prompted rumours of multiple acquisitions for its chocolate
half - in what would be a huge shake-up of the global confectionery

This week, the business world has been abuzz with predictions of what Cadbury will do next.

Shares in Swiss chocolatier Lindt & Sprungli even rose 2 per cent yesterday as it could be a possible takeover target for the confectionery giant.

Lindt has not been the only company lined up as a possible candidate for joining the Cadbury portfolio.

The Financial Times reported yesterday that Italian group Ferrero, which owns the successful Nutella brand and German jelly sweet maker Haribo, could also make the list.

As yet, the company have refused to confirm or deny rumours, but most in the industry agree that the owner of the Crème egg, Dairy Milk and Flake brands will be looking to strengthen and consolidate following the loss of its drinks business.

The beverage division is known to have helped keep the ailing chocolate side afloat throughout the past year.

A widespread UK recall following salmonella contamination cost the company £30 million (€44.5m) last summer and this figure is expected to rise following the outcome of a court battle with Birmingham City Council, who are seeking to prosecute the company for inadequate safety measures.

Problems for the confectionery division continued with an Easter-time recall of products unsafe for nut allergy sufferers and a scrapped UK advertising campaign designed to accompany the launch of Trident gum into the British market.

The adverts were scrapped after numerous complaints that they were 'insensitive' led the Advertising Standards Authority to rule they had breached advertising codes.

Following the loss of its drinks sector later this year, the chocolate producer will be aiming to develop the business and maintain its position as one of the strongest players in the global confectionery market.

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