Cadbury to scrap 250 roles despite 6% sales rise

Cadbury is axing 250 jobs as part of its strategy to streamline its organisation and strengthen its focus on category development. It comes as the confectionery company announces a 6% rise in revenue for its third quarter.

The company says that the growth is driven by “an excellent quarter” in Britain and 13% in emerging markets. Revenue in Britain, Ireland, Middle East and Africa grew by 10%, while revenue in Europe rose by 4% despite a slow-down in France, Spain and Northern Ireland. It also reported growth of 7% in the Americas, with strong sales in South America and the US. Asia-Pacific was up by 2% but was let down by a weak performance in its Australian beverage business.

Meanwhile, the company has also said it is scrapping 250 jobs, including senior management roles although it is not clear if it will affect marketing. It is restructuring its business unit groups from four, BIMA, Americas, Europe and Asia Pacific, to seven – Britain & Ireland, Middle East and Africa, North America, South America, Europe, Asia and Pacific. All will report directly to chief executive, Todd Stitzer.

It says it will also strengthen its global chocolate, gum and candy category structure in a bid to further increase its focus on category development. It aims to streamline the business to allow “faster decision making, improve in-market execution and ensure a stronger alignment of category strategies and commercial programmes.

The company also says it expects commodity and input costs to rise by up to 8% next year following a estimated rise of 6% for 2008.

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