A UK union has warned that if Kraft Foods is successful in its hostile bid to acquire Cadbury, the US food giant would likely cut investment in the confectionery group.

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The Unite union, which represents Cadbury workers in the UK and Ireland, has been involved in discussions with Kraft in a bid to win assurances over jobs and future investment in company.


“Jobs are a concern on both sides of the Irish Channel. And its not just the jobs; it is the investment decisions that would be made,” a spokesperson for Unite told just-food today (11 December).


The union is concerned that Kraft would not sufficiently invest in the long-term prospects of the business and its brands as it looks to reduce costs to service debt.


“We aren’t hopeful that they would invest in Cadbury. The answers they have given [during negotiations] on their investment plans are ambiguous and that suggests to us that they would be looking to cut costs to claw back some of the huge borrowing that they would need to complete the acquisition,” the spokesperson revealed.

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For this reason, Unite has mobilised its members in a “keep Cadbury independent” campaign, which will be launched in the English town of Bournville on Tuesday (15 December).


On Monday, Cadbury will continue its bid to defend against a Kraft takeover when it makes its formal response to the offer.


The union has called on shareholders to reject Kraft’s bid, arguing that Kraft’s recent takeover record suggests that the group “has not delivered the promised returns”.