Cadbury loses its strategic clout to Kraft’s European HQ

Cadbury’s marketing will remain in the UK, but Kraft officials in Europe will handle strategic decisions, Marketing Week has learnt.

The move comes as Kraft builds its “Category Leadership team” in Zurich. Under the team, Cadbury will be split into categories, with executives overseeing each of the company’s strategic directions. President of the chocolate division is Tamara Minick-Scokalo, a former Cadbury president.

The UK Cadbury marketing director’s role will be diminished in two ways. First, there will be little input into strategy. Second the role will oversee chocolate only, and no longer gum and sweets.

The changes come a month after Kraft’s executive vice-president for corporate and legal affairs, Marc Firestone, told the government’s business, innovation and skills select committee that “Kraft will keep Cadbury’s marketing and sales operations in the UK because they understand the British market”.

A Cadbury spokesperson insisted that Kraft had not gone back on its word, saying: “Marketing as a function does remain in market. The Zurich teams provide overall strategic direction.”

A company insider says: “The set-up Kraft has chosen for Cadbury will ensure that it maintains its promises, but still has the capability to mastermind the targets by controlling all strategic insights.”

Departing Cadbury UK marketing director Phil Rumbol turned down a post on the leadership team which would have overseen the strategy for the chocolate business.

 

Knowledge Bank

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