The integration of Cadbury is in its infancy, but Kraft's acquisition hasn't hindered the performance of either company, and together they will go from strength to strength, said Kraft UK and Ireland president Nick Bunker at a media briefing this week, as he reported strong growth for Cadbury Dairy Milk, a "fantastic" Cadbury pipeline, and "exciting" new plans for Kraft's Kenco coffee business.
Sales of CDM were up 12.8%, increasing its share by 60bps, and Cadbury's overall chocolate confectionery business grew by 5%. Although Kraft's chocolate sales, up 7.5%, rose faster in percentage terms [Nielsen MAT 52w/e 30 October], this was the result of increased distribution that was planned prior to the Cadbury acquisition, said Bunker. "Milka is a bigger brand in Europe than Cadbury, but over here is around £16m, whereas Cadbury is over £400m. Milka also has a different taste profile. There's definitely an opportunity for co-existence."
The two sales forces would continue to operate independently until next year when they are able to operate on the same sales platform, although Cadbury sales director Dave Pogson is now also responsible for the Kraft confectionery sales team, but Bunker said he was encouraged by the early signs of integration between the two companies.
"We've spent a lot of time getting to know one another. There was a lot of emotion around the acquisition but when you take away the Powerpoint, we are similar on numerous levels. The best process I can put in place is time."
A recent meeting of the top 100 managers was "brilliant", he added. "By the end you would not have known who was from Cadbury and who was from Kraft."
Bunker said he was confident that a "very detailed cross-fertilisation of ideas between Kraft and Cadbury" would result in an extra £1bn sales by 2013. "My focus is on growing the business."
Bunker also used the briefing to update journalists on new investment and NPD plans in Kraft's existing divisions. A new premium instant coffee to rival Starbucks Via, called Kenco Millicano (The Grocer, 27 November), will launch in silver tins next February. The rsp yet to be confirmed.
Kenco also plans to spend £15.8m on new packaging facilities at its Banbury coffee HQ to support the astonishing success of Kenco's refill packs. In the 12 months since the eco-friendly format launched, 11% of consumers had purchased a pack, and it already accounted for 25% of Kenco sales, said Bunker. Currently outsourced to a packing facility in France, the investment would boost production and save money, he added.
Sales of CDM were up 12.8%, increasing its share by 60bps, and Cadbury's overall chocolate confectionery business grew by 5%. Although Kraft's chocolate sales, up 7.5%, rose faster in percentage terms [Nielsen MAT 52w/e 30 October], this was the result of increased distribution that was planned prior to the Cadbury acquisition, said Bunker. "Milka is a bigger brand in Europe than Cadbury, but over here is around £16m, whereas Cadbury is over £400m. Milka also has a different taste profile. There's definitely an opportunity for co-existence."
The two sales forces would continue to operate independently until next year when they are able to operate on the same sales platform, although Cadbury sales director Dave Pogson is now also responsible for the Kraft confectionery sales team, but Bunker said he was encouraged by the early signs of integration between the two companies.
"We've spent a lot of time getting to know one another. There was a lot of emotion around the acquisition but when you take away the Powerpoint, we are similar on numerous levels. The best process I can put in place is time."
A recent meeting of the top 100 managers was "brilliant", he added. "By the end you would not have known who was from Cadbury and who was from Kraft."
Bunker said he was confident that a "very detailed cross-fertilisation of ideas between Kraft and Cadbury" would result in an extra £1bn sales by 2013. "My focus is on growing the business."
Bunker also used the briefing to update journalists on new investment and NPD plans in Kraft's existing divisions. A new premium instant coffee to rival Starbucks Via, called Kenco Millicano (The Grocer, 27 November), will launch in silver tins next February. The rsp yet to be confirmed.
Kenco also plans to spend £15.8m on new packaging facilities at its Banbury coffee HQ to support the astonishing success of Kenco's refill packs. In the 12 months since the eco-friendly format launched, 11% of consumers had purchased a pack, and it already accounted for 25% of Kenco sales, said Bunker. Currently outsourced to a packing facility in France, the investment would boost production and save money, he added.
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