Cadbury looks to open up branded cafés

Cadbury is considering stretching its brand into the café marketplace by opening a national chain of Cadbury-branded cafés.

The plan, which was being considered prior to Kraft taking over the British confectioner, has been given backing by the US Food giant. A licensing deal has also been signed, lasting 20 years.

The Cadbury branded cafés would be called Cadbury Cocoa House and will sell the company’s selection of chocolate, confectionery and gums. Hot drinks will also be offered, including the Cadbury hot chocolate ranges.

It would be the first time the company has directly competed in the high street coffee shop marketplace. Whist rivals Mars has struck deals to sell its Galaxy hot chocolate range in some cafés, Cadbury has not been a partner of any national chains before.

Reports suggest the confectioner is talking with estate agents to identify locations and the shops are expected to play on the British heritage of Cadbury by playing on the afternoon tea theme.

Kraft Foods sealed its £11.7bn takeover of Cadbury after over 70% of shareholders in the UK’s largest confectioner voted in favour of the deal in February.

The takeover has been the subject of a UK parliamentary investigation where Kraft said it will keep Cadbury’s marketing and sales operations in the UK because “they understand the British market”.

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.

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