.svg){kind=link}
The story
Founded by John Cadbury in 1824, in Birmingham.1
1800–1900: Early history
On 4 March 1824, John Cadbury, a Quaker, began selling tea, coffee and drinking chocolate in Bull Street in Birmingham, England. From 1831, he moved into the production of a variety of cocoa and drinking chocolates, made in a factory in Bridge Street and sold mainly to the wealthy because of the high cost of production. In 1842, he started selling chocolate for eating, perhaps the first in Britain. In 1847, John Cadbury became a partner with his brother Benjamin and the company became known as "Cadbury Brothers". In 1847, Cadbury's competitor Fry's of Bristol produced the first chocolate bar (which would be mass-produced as Fry's Chocolate Cream in 1866). Cadbury introduced his brand of the chocolate bar in 1849, and that same year, Cadbury and Fry's chocolate bars were displayed publicly at a trade fair in Bingley Hall, Birmingham. The Cadbury brothers opened an office in London, and, in 1854, they received the royal warrant as manufacturers of chocolate and cocoa to Queen Victoria. The firm began exporting its products in the 1850s but had started going into decline in the later half of the decade.
John Cadbury's sons Richard and George took over the business in 1861. At the time of the takeover, the business was in rapid decline: the number of employees had reduced from 20 to 11, and the company was losing money. By 1866, Cadbury was profitable again. The brothers had turned around the business by moving the focus from tea and coffee to chocolate, and by increasing the quality of their products.
The firm's first major breakthrough occurred in 1866, when Richard and George introduced an improved cocoa into Britain. A new cocoa press developed in the Netherlands removed some of the unpalatable cocoa butter from the cocoa bean. In 1861, the company created Fancy Boxes (a decorated box of chocolates) and, in 1868, they were sold in boxes in the shape of a heart for Valentine's Day. Boxes of filled chocolates quickly became associated with the holiday. Cadbury manufactured their first Easter egg in 1875, creating the modern chocolate Easter egg after developing a pure cocoa butter that could be moulded into smooth shapes. By 1893, Cadbury had 19 different varieties of chocolate Easter egg on sale.
In 1878, the brothers decided to build new premises in countryside four miles (6.4 km) from Birmingham. The move to the countryside was unprecedented in business. Better transport access for milk that was shipped inward by canal, and cocoa that was brought in by rail from London, Southampton and Liverpool docks was taken into consideration. With the development of the Birmingham West Suburban Railway along the path of the Worcester and Birmingham Canal, they acquired the Bournbrook estate, comprising 14.5 acres (5.9 ha) of countryside south of Birmingham. Located next to the Stirchley Street railway station, which itself was opposite the canal, they renamed the estate Bournville and opened the Bournville factory in 1879. In 1891, the Cadbury brothers filed a patent for a chocolate-coated biscuit.
In 1893, George Cadbury bought 120 acres (49 ha) of land close to the works and planned, at his own expense, a model village which would 'alleviate the evils of modern more cramped living conditions'. By 1900, the estate included 314 cottages and houses set on 330 acres (130 ha) of land. As the Cadbury family were Quakers, there were no pubs in the estate.
In 1897, following the lead of Swiss companies, Cadbury introduced its own line of milk chocolate bars. In 1899, Cadbury was incorporated as a private limited company at the Companies House in London.
1900–1969
In 1905, Cadbury launched its Dairy Milk bar, a high quality product with a greater proportion of milk than previous chocolate bars. Developed by George's son, George Cadbury Jr (along with his research and development team), it was the first time a British company had been able to mass-produce milk chocolate. From the beginning, it had the distinctive purple wrapper. It was a great sales success, and became the company's best-selling product by 1914. The stronger Bournville Cocoa line was introduced in 1906. Cadbury Dairy Milk and Bournville Cocoa were to provide the basis for the company's rapid pre-war expansion. In 1910, Cadbury sales overtook those of Fry for the first time.
Cadbury's Milk Tray was first produced in 1915 and continued in production throughout the remainder of the First World War. More than 2,000 of Cadbury's male employees joined the British Armed Forces, and to support the British war effort, Cadbury provided chocolate, books and clothing to the troops. George Cadbury handed over two company-owned buildings for use as hospitals – "The Beeches" and "Fircroft", and the management of both hospitals earned the War Office's highest award. Factory girls, dubbed 'The Cadbury Angels', volunteered to do the laundry of injured soldiers recovering in the hospitals. After the war, the Bournville factory was redeveloped and mass production began in earnest. In 1918, Cadbury opened their first overseas factory in Hobart, Tasmania. A trainline was also built for easier access to Hobart. Of the 16 women who came to Tasmania to set up the factory, seven are known to have returned to the UK, two married and stayed in Tasmania, two did not marry but stayed and five left no record.
Read the full text
In 1919, Cadbury merged with Fry's, resulting in the integration of well-known brands such as Fry's Chocolate Cream and Fry's Turkish Delight. In 1921, the many small Fry's factories around Bristol were closed down, and production was consolidated at a new Somerdale Factory, outside Bristol.
Cadbury expanded its product range with Flake (1920), Creme eggs (1923), Fruit and Nut (1928), and Crunchie (1929, originally under the Fry's label). By 1930, Cadbury was the 24th-largest British manufacturing company as measured by estimated market value of capital. Cadbury took direct control of the under-performing Fry in 1935. Dairy Milk Whole Nut arrived in 1933, and tins of Roses were introduced in 1938 (competing with Quality Street launched by Mackintosh's in 1936). Roses has become a very popular Christmas (and Mother's Day) gift.
By the mid-1930s, Cadbury estimated that 90 percent of the British population could readily afford to buy chocolate as it was no longer considered a luxury item for the working classes. By 1936, Dairy Milk accounted for 60 per cent of the UK milk chocolate market. Between the two world wars Cadbury sent test packages to British schoolchildren in exchange for their opinions on new products, one of whom, Roald Dahl, would later write the children's novel Charlie and the Chocolate Factory.
During the Second World War, parts of the Bournville factory were turned over to war work, producing milling machines and seats for fighter aircraft. Workers ploughed football fields to plant crops. As chocolate was regarded as an essential food, it was placed under government supervision for the entire war. The wartime rationing of chocolate ended in 1950, and normal production resumed. Cadbury subsequently invested in new factories and had an increasing demand for their products. In 1952 the Moreton factory was built.
In 1967, Cadbury acquired an Australian confectioner, MacRobertson's, beating a rival bid from Mars. As a result of the takeover, Cadbury built a 60 per cent market share in the Australian market.
Cadbury was a holder of a royal warrant issued by Queen Elizabeth II from 1955 to 2022. A warrant from King Charles III was held for a further two years, but was dropped in 2024.
Schweppes merger (1969)
Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in 1969. Head of Schweppes, Harold Watkinson, became chairman, and Adrian Cadbury became deputy chairman and managing director. The benefits of the merger were to prove elusive. The merger put an end to Cadbury's close links to its Quaker founding family.
In 1978, the company acquired Peter Paul, the third largest chocolate manufacturer in the United States for $58 million, which gave it a 10 per cent share of the world's largest confectionery market. The successful Wispa chocolate bar was launched in the North East of England in 1981, and nationwide in 1984. In 1982, trading profits were greater outside of Britain than in the UK for the first time.
In 1986, Cadbury Schweppes sold its Beverages and Foods division to a management buyout known as Premier Brands for £97 million. This saw the company divest itself of such brands as Typhoo Tea, Kenco, Smash and Hartley Chivers jam. It also saw Premier take the licence for production of Cadbury brand biscuits and drinking chocolate.
Meanwhile, Schweppes switched its alliance in the UK from Pepsi to Coca-Cola, taking a 51 per cent stake in the joint venture Coca-Cola Schweppes. The acquisition of Canada Dry doubled its worldwide drinks market share, and it took a 30 per cent stake in Dr Pepper. As a result of these acquisitions, Cadbury Schweppes became the third largest soft drinks manufacturer in the world. In August 1988, the company sold its U.S. confectionery operations to Hershey's for $284.5 million cash plus the assumption of $30 million in debt, while it purchased the French business Choclat Poulain in the same year.
In 1992, company chairman Sir Adrian Cadbury produced the Cadbury Report (via the Cadbury committee set up by the London Stock Exchange), a code of best practice which served as a basis for reform of corporate governance around the world. In 1993, Cadbury Schweppes acquired A&W. In 1995, Cadbury Schweppes acquired Dr Pepper/Seven-Up Companies. In 1999, Cadbury Schweppes sold its worldwide beverage businesses to The Coca-Cola Company except in North America and continental Europe for $700 million. In the same year, the company purchased E. Wedel and their factory in Praga, from PepsiCo for US$76.5 million.
Snapple, Mistic and Stewart's (formerly Cable Car Beverage) were sold by Triarc to Cadbury Schweppes in 2000 for $1.45 billion. In October of that same year, Cadbury Schweppes purchased Royal Crown from Triarc. In 2003, Cadbury Schweppes acquired Adams, the US chewing gum operations of Pfizer Inc., for $4.2 billion, making Cadbury the world's biggest confectionery company. In 2005, Cadbury Schweppes acquired Green & Black's for £20 million.
Schweppes demerger
In March 2007, it was revealed that Cadbury Schweppes was planning to split its business into two separate entities: one focusing on its main chocolate and confectionery market; the other on its US drinks business. The demerger took effect on 2 May 2008, with the drinks business becoming Dr Pepper Snapple Group and Cadbury Schweppes plc becoming Cadbury plc. In December 2008 it was announced that Cadbury was to sell its Australian beverage unit to Asahi Breweries.
2007–2010
In October 2007, Cadbury announced the closure of the Somerdale Factory, in Keynsham, Somerset, formerly part of Fry's. Between 500 and 700 jobs were affected by this change. Production transferred to other plants in England and Poland.
In 2008, Monkhill Confectionery, the Own Label trading division of Cadbury Trebor Bassett was sold to Tangerine Confectionery for £58 million. This sale included factories at Pontefract, Cleckheaton and York and a distribution centre near Chesterfield, and the transfer of around 800 employees.
In mid-2009, Cadbury replaced some of the cocoa butter in their non-UK chocolate products with palm oil. Despite stating this was a response to consumer demand to improve taste and texture, there was no "new improved recipe" claim placed on New Zealand labels. Consumer backlash was significant from environmentalists and chocolate lovers in both Australia and New Zealand, with consumers objecting to both the taste from the cheaper formulation, and the use of palm oil given its role in the destruction of rainforests. By August 2009, the company announced that it was reverting to the use of cocoa butter in New Zealand and Australia, although palm oil is still listed as an ingredient in Cadbury's flavoured sugar syrup based fillings (where it referred to as 'vegetable oil'). In addition, Cadbury stated it would source cocoa beans through Fair Trade channels. In January 2010 prospective buyer Kraft pledged to honour Cadbury's commitment.
Acquisition and subsidiary (2009–2023)
On 7 September 2009, Kraft Foods made a £10.2 billion (US$16.2 billion) hostile takeover bid for Cadbury. The offer was rejected, with Cadbury stating that it undervalued the company. Kraft launched a formal, hostile bid for Cadbury, valuing the firm at £9.8 billion on 9 November 2009. The UK Business Secretary Peter Mandelson warned Kraft not to try to "make a quick buck" from the acquisition of Cadbury.
On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal and that Kraft would purchase Cadbury for £8.40 per share, valuing Cadbury at £11.5bn (US$18.9bn). Kraft, which issued a statement stating that the deal will create a "global confectionery leader", had to borrow £7 billion (US$11.5bn) in order to finance the takeover.
The Hershey Company, based in Pennsylvania, manufactures and distributes Cadbury-branded chocolate (but not its other confectionery) in the United States and has been reported to share Cadbury's "ethos". Hershey had expressed an interest in buying Cadbury because it would broaden its access to faster-growing international markets. But on 22 January 2010, Hershey announced that it would not counter Kraft's final offer.
The acquisition of Cadbury faced widespread disapproval from the British public, as well as groups and organisations including trade union Unite, who fought against the acquisition of the company which, according to Prime Minister Gordon Brown, was very important to the British economy. Unite estimated that a takeover by Kraft could put 30,000 jobs "at risk", and UK shareholders protested over the mergers and acquisitions advisory fees charged by banks. Cadbury's M&A advisers were UBS, Goldman Sachs and Morgan Stanley. Controversially, RBS, a bank 84% owned by the United Kingdom Government, funded the Kraft takeover.
On 2 February 2010, Kraft secured over 71% of Cadbury's shares thus finalising the deal. Kraft had needed to reach 75% of the shares in order to be able to delist Cadbury from the stock market and fully integrate it as part of Kraft. This was achieved on 5 February, and the company announced that Cadbury shares would be de-listed on 8 March. On 3 February, the Chairman Roger Carr, chief executive Todd Stitzer and chief financial officer Andrew Bonfield all announced their resignations. Stitzer had worked at the company for 27 years. On 9 February, Kraft announced that it was planning to close the Somerdale Factory, Keynsham, with the loss of 400 jobs. The management explained that existing plans to move production to Poland were too advanced to be realistically reversed, though assurances had been given regarding sustaining the plant. Staff at Keynsham criticised this move, suggesting that they felt betrayed and as if they have been "sacked twice". On 22 April 2010, Phil Rumbol, the man behind the famous Cadbury Gorilla advertisement, announced his plans to leave the Cadbury company in July following Kraft's takeover.
The European Commission decided that Kraft would have to divest Cadbury's confectionery businesses in Poland (Wedel) and Romania (Kandia). In June 2010, the Polish division, Cadbury-Wedel, was sold to Lotte of Korea. As part of the deal Kraft kept the Cadbury, Hall's and other brands along with two plants in Skarbimierz-Osiedle. Lotte took over the plant in Warsaw along with the E Wedel brand. Kandia was sold back to the Meinl family, which had owned the brand from 2003 to 2007.
On 4 August 2011, Kraft Foods announced it would be splitting into two companies beginning on 1 October 2012. The snack and confectionery business of Kraft became Mondelez International, of which Cadbury would become a subsidiary.
In response to diminishing margins in early 2014, Mondelez hired Accenture to implement a US$3 billion cost-cutting programme of the company's assets including Cadbury and Oreo. Beginning in 2015, Mondelez began closing Cadbury factories in several developed countries including Ireland, Canada, the United States, and New Zealand and shifting production to "advantaged" country locations like China, India, Brazil, and Mexico. The closure of Cadbury factories in centres such as Dublin, Montreal, Chicago, Philadelphia, and Dunedin in New Zealand generated outcries from the local populations. The plan received approval from several market shareholders including the Australian and New Zealand banks Westpac and ASB Bank.
In January 2017, Cadbury became the official snack partner of the Premier League, and sponsored the Premier League Golden Boot and Premier League Golden Glove awards.
200th anniversary: 2024–present
On 8 January 2024, Mondelez International announced plans to celebrate the 200th anniversary of Cadbury, including: promotions, celebrations, and seven retro packaging designs for its Cadbury Dairy Milk bars.
On 17 March 2024, Cadbury celebrated their bicentenary by unveiling their newly refurbished UK archive. The new archive which cost £350,000, documents over 50,000 Cadbury items including; packaging history, artworks, and discontinued products. With Mondelēz International planning on opening the archive to the public at a later date.
On 23 December 2024, it was announced that after 170 years of its association with the British monarchy, since the reign of Queen Victoria, Cadbury would now no longer hold its Royal Warrant under King Charles III.
While no reason was given, the King had been urged by campaign group B4Ukraine to withdraw warrants from companies "still operating in Russia" after the invasion of Ukraine, with Mondelez and consumer goods firm Unilever (who also lost its royal warrant) among those named. In a statement by a Mondelez spokesperson: "Whilst we are disappointed to be one of hundreds of other businesses and brands in the UK [...] to not have a new warrant awarded, we are proud to have previously held one, and we fully respect the decision."
From Wikipedia’s article on Cadbury, shared under CC BY-SA 4.0.4