Kraft to remain under scrutiny, says Parliamentary committee

Kraft is to remain under close Government scrutiny following its takeover of Cadbury and the responses it gave to a Commons business select committee last month.

MPs on the business, innovation and skills committee have slammed Kraft for acting “irresponsibly and unwisely” in making its original statement that it believed that it could keep the Cadbury Somerdale factory open.

They also say that the company’s actions have “undoubtedly damaged its UK reputation and has soured its relationship with Cadbury employees.”

Kraft will have to “spend significant time restoring both brand reputation and relations with the UK general public and Cadbury employees in the UK”, according to the findings.

The committee also expressed the view that Kraft president Irene Rosenfeld’s absence was a missed opportunity in restoring such confidence.

It recommends that “the Department for Business, Innovation and Skills monitor Kraft’s compliance with its undertakings, and particularly those relating to Cadbury’s world class Research and Development facilities.”

Kraft made public promises throughout the original March hearing to uphold Cadbury’s key brands including Dairy Milk, Crème Egg and Bournville, following enquiries by the committee last month into Kraft’s intentions over Cadbury brand management; plans for Cadbury’s philanthropic efforts, as well as intentions regarding Cadbury’s world-class research and development function based at Reading University.

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