Kraft Foods believed the merger with Cadbury was compelling strategically and financially. The agreement was approved by the Cadbury board after a four-month negotiation between Cadbury's chairman and Kraft's CEO. Under the agreement, Kraft offered 850 pence per Cadbury share, comprising a cash payment of 840 pence plus a 10 pence dividend. However, some industry observers questioned the value of the Cadbury acquisition for Kraft.

1. By: Ankita Singh

2. The Kraft Foods believed that the strategic and financial rationale for
the merger was compelling

5. About the Agreement
 The agreement followed a four-month war of
words between Cadbury Chairman Roger Carr
and Rosenfeld. The deal was approved by the
Cadbury board on the strength of Kraft's offer
that each shareholder would be paid 840 pence
(US$13.70) per share and would also be
authorized to receive special dividends of 10
pence per share, so that the total payment for
each Cadbury share would be 850 pence. The
news of the acquisition was greeted with
skepticism in some quarters with industry
observers questioning the value of the
Cadbury takeover.

17. Recommendations
 Focus on power brands
 Global Brands: Oscar Mayer, Jacobs, Tang
etc.
 Local Brands: A-1 steak sauce(North
America), Dairylea cheese(U.K.), Vegemite
spreads(Australia) etc.
 Acquired Brand: Cadbury, Halls, Bubbaloo
etc.

18. Recommendations (contd.)
 Snacks category
 High growth, high margin
 Shared innovation, Integrated marketing
 Brand repositioning
 Reframe biscuit category
○ Umbrella branding

21. Thank you