Sad day for chocolate...

[Penfold42]

http://www.telegraph.co.uk/finance/comment/tracycorrigan/7029357/Krafts-takeover-of-Cadbury-leaves-a-bitter-taste-in-the-mouth.html

[NKR]

Sad day for the British economy when another British company is lined up for asset stripping. You can't debt finance that kind of transaction without looking at breakup or the company would have been valued much higher.

[Solitaire Events Ltd]

Funnily enough, I've just used that for a question in a quiz I'm preparing for tomorrow!

[Jiggles]

Sad sad loss. Nothing will be the same anymore. :(

[Solitaire Events Ltd]

Sad sad loss. Nothing will be the same anymore. :(

What difference will it make to you then? :confused:

[simonp]

What difference will it make to you then? :confused:

His Dairy Milk will taste like a cheese triangle :lol:

[DeckstarDeluxe]

bit of an over reaction really times are changing and this is the way things go?

Im happy if they lower the production costs as it will up the profit margins :D

[BeerFunk]

bit of an over reaction really times are changing and this is the way things go?

Im happy if they lower the production costs as it will up the profit margins :DYou're happy for them to maximise their profits?? :confused:

And by lowering the production costs, they're most likely going to move production to Eastern Europe or further afield, meaning less jobs in the UK.

[Solitaire Events Ltd]

Neil works in a petrol station :sofa: and I assume he is talking about forecourt sales and profits...

[BeerFunk]

Neil works in a petrol station :sofa: and I assume he is talking about forecourt sales and profits...
Aaah, I see! :)

Well, I would imagine the unit price would be the same to retailers, regardless?

[Vectis]

Cadburys (or, as it was when I were a lad, Cadbury's) isn't proper chocolate.... :sofa:

Having spent many years working for a multinational foods & homecare products manufacturer, and knowing a reasonable amount about the Cadburys business, a lot of what the naysayers are bleating about is going to happen regardless of who owns the company. Lots of underinvestment in buildings and plant over the years, and a heavy workforce, more or less guaranteed it's demise some time ago. The salmonella incident a couple of years back was proof.

It was just a matter of when...

[NKR]

Cadburys (or, as it was when I were a lad, Cadbury's) isn't proper chocolate.... :sofa:

Having spent many years working for a multinational foods & homecare products manufacturer, and knowing a reasonable amount about the Cadburys business, a lot of what the naysayers are bleating about is going to happen regardless of who owns the company. Lots of underinvestment in buildings and plant over the years, and a heavy workforce, more or less guaranteed it's demise some time ago. It was just a matter of when...

Well the time is now, so we can expect at least 20 more DJ's in each of Cadburys key areas in the next couple of years. :p :D :D :D

[Vectis]

Not too many pubs round Bournville way... :zip:

[jc light and sound]

Cadburys (or, as it was when I were a lad, Cadbury's) isn't proper chocolate.... :sofa:

Having spent many years working for a multinational foods & homecare products manufacturer, and knowing a reasonable amount about the Cadburys business, a lot of what the naysayers are bleating about is going to happen regardless of who owns the company. Lots of underinvestment in buildings and plant over the years, and a heavy workforce, more or less guaranteed it's demise some time ago. The salmonella incident a couple of years back was proof.

It was just a matter of when...
Wouldn't you agree though that this is just another part of British heritage down the pan, it might just be chocolate but the bigger picture possible redundancies and people out of work will mean less money in the end for people like you and me which means we will suffer as well ,dominoe effect.

[rob1963]

Neil works in a petrol station :sofa: and I assume he is talking about forecourt sales and profits...

Can you get Chocolate from Petrol pumps then?

:p

[NKR]

Wouldn't you agree though that this is just another part of British heritage down the pan, it might just be chocolate but the bigger picture possible redundancies and people out of work will mean less money in the end for people like you and me which means we will suffer as well ,dominoe effect.

I think you will find we a knackered anyway as China holds all the cards. They make everything and then lend the west the money to buy it off them, so they can make more stuff for us and lend us the money again.
Watch this space as Eastern Sovereign funds start to take asset for debt swaps in America or call loans that need to be swapped for tangible assets. Yes they could end up owning a good proportion of the housing and commercial stock in the west and then will charge rent on them whilst lending money to buy more tat to put in them.
The balance of power has shifted, its just not in their interest to pull the rug yet.

As for Cadburys. Well this useless government remove any legal challenge that could have made against aggressive takeovers years ago in favour of progress and allowing private equity to mop up so called under performing companies. The truth is they just debt burdened them to the eye balls whilst converting any fixed assets such as property into cash to remove (sale and leaseback). This is just a hole left by that legacy.

[jc light and sound]

I think you will find we a knackered anyway as China holds all the cards. They make everything and then lend the west the money to buy it off them, so they can make more stuff for us and lend us the money again.
Watch this space as Eastern Sovereign funds start to take asset for debt swaps in America or call loans that need to be swapped for tangible assets. Yes they could end up owning a good proportion of the housing and commercial stock in the west and then will charge rent on them whilst lending money to buy more tat to put in them.
The balance of power has shifted, its just not in their interest to pull the rug yet.

As for Cadburys. Well this useless government remove any legal challenge that could have made against aggressive takeovers years ago in favour of progress and allowing private equity to mop up so called under performing companies. The truth is they just debt burdened them to the eye balls whilst converting any fixed assets such as property into cash to remove (sale and leaseback). This is just a hole left by that legacy.

Yes i totally agree ,on the subject of debt burdened we as a country are massively in debt i just wonder if we will have a uk take over bid so much for prudence who is she anyway.

[jeff wood]

i spose that could happen

China buys the UK !!

[Vectis]

At risk of this thread becoming slightly political, it seems that the bulk of the cash Kraft are using to buy Cadburys....


























... is coming from RBS :eek:

[jeff wood]

well there should be something in place to stop this sort of happening..

how can it right that a company can borrow 7 billion pounds to buy another company, and then sell off some bits of it and probably move manufacturing somewhere cheaper.

the result is, its another big employer gone, plus any supplying industries,

[NKR]

well there should be something in place to stop this sort of happening..

how can it right that a company can borrow 7 billion pounds to buy another company, and then sell off some bits of it and probably move manufacturing somewhere cheaper.

the result is, its another big employer gone, plus any supplying industries,

I still can't multiquote.

Their used to be some protection but it was removed to allow the private equity boom, which added nothing to the economy, stripped lots of companies and shareholders (mostly pension funds Ie our pensions) of their assets and left them debt burdened. What happened over the last ten years is a sin and most of our pension funds should have had that benefit not agressive private equity operations fueled by cheap bank debt.

On the point of being debt burdened country, when compared with other leading western economies our overall debt to GDP level is actually one of the lowest. However, unless current deficits are reigned in that will not always be the case.

[Adam_F]

Not too many pubs round Bournville way... :zip:

Your not wrong!

Very annoying when you fancy a quick pint with your mates that all live round there!! :bang:

[DeckstarDeluxe]

Neil works in a petrol station :sofa: and I assume he is talking about forecourt sales and profits...

Correct Darren, in fact two well at the moment but thats up for review at the moment.

I personally hold no real affection for cadburys and alot of their income and buisness is already done overseas so no real surprise here.

[Penfold42]

Interesting views on this.

I like the chocolate and consider it to be one of the best. I’ve tasted American chocolate – Hershey’s bar – what a pile of poo that was, all the hype I got when we went to Mexico for a Hersheys bar – really disappointed.

Go to other high street shops again and there chocolate tastes foul.

For me Cadburys chocolate will stay the same – I’ve no doubt that the Yanks will keep the same taste whatever it’s the jobs that concern me and the people who work there and what the Americans MAY do with the plant after the Government no longer think it’s an issue and falls off the radar.

[Kernow]

Has anyone yet considered the positives, that by becoming part of a global conglomerate, Cadburys will be operating within a much larger potential market. Although popular products in the UK, they're far from world leaders in confectionery.

[NKR]

Has anyone yet considered the positives, that by becoming part of a global conglomerate, Cadburys will be operating within a much larger potential market. Although popular products in the UK, they're far from world leaders in confectionery.

Yes and as part of a global conglomerate they are going to keep making it in that really low cost base of the Midlands rather than rolling it into one of their other cheaper plants. Of course they are.

If Cadburys had global potential it should have been explored and exploited by the current board and then the value of that expansion into global markets used to increase the value of the company.

[Kernow]

Yes and as part of a global conglomerate they are going to keep making it in that really low cost base of the Midlands rather than rolling it into one of their other cheaper plants. Of course they are.

If Cadburys had global potential it should have been explored and exploited by the current board and then the value of that expansion into global markets used to increase the value of the company.

Heritage and tradition are wonderful things to be applauded...........BUT the sad fact is there is no room for sentiment in business.
The focus is always on controlling costs and maximizing profits.
How many of the UK's former manufacturing industries still remain under UK control ?
Nevertheless, the globals continue to keep some of their manufacturing processes in this country, but only as long as we remain efficient & competitive. We are nowadays world reknowned as a nation of service providers rather than tangible producers.

[Penfold42]

Heritage and tradition are wonderful things to be applauded...........BUT the sad fact is there is no room for sentiment in business.

Tell that to Lizzy II then? :D

[Kernow]

Tell that to Lizzy II then? :D

But she's a multiinational, although realistic enough to have downsized even the Empire to a Commonwealth :D
She also has a captive market.....if you're not her customer (/taxpayer) you go to jail !! ;) :D :D :D

[Penfold42]

But she's a multiinational, although realistic enough to have downsized even the Empire to a Commonwealth :D
She also has a captive market.....if you're not her customer (/taxpayer) you go to jail !! ;) :D :D :D

:lol:

[Kernow]

:lol:

Her lad, who will take over as chairman eventually, also does quite well from the farmers, tinners & fisherfolk hereabouts. He has already diversified into trendy consumerism and will no doubt incorporate his personal branding into the family conglomerate. ;) :D :D :D