FMCG Blog FMCG Views and News

In an interesting, strange, unusual way Cadbury has been able to confirm a major appointment at Kraft.

In making comment in regards to Michael Magee’s departure from Cadbury a “Cadbury” spokesperson has confirmed he will be the new Marketing Director at Kraft Australia – the role vacated by Nikki Anderson.

B&T has reported a Cadbury spokesperson said

““Michael has left to go to Kraft. We are
undertaking a search to replace him. This is an ongoing search that
will take place as we split the confectionery brands from the drinks
side of the business.”

I wonder if Kraft will be able to confirm who the new Cadbury Marketing director will be?

Tim

Posted under News

Cadbury  Schweppes has done a double-take on its continuation of its relationship with Publicis Mojo and has  annoannounced it will now split the business between two agencies.

Saatchi & Saatchi will take over the Cadbury Dairy Milk portfolio,  while Publicis Mojo will continue creative duties on the remianed of the confectionary brands as well as innovation projects.

Tim

Posted under Uncategorized

Well as I have been saying Schweppes was on the market and being spied from Japan. Got the country right but the company wrong. Drinks giant Asahi Breweries has bought the Schweppes business from Cadbury PLC.

This is subject to The Coca Cola Company not using its last offer rights, which it holds for 90 days.  It would be a hard road for the guys from Atlanta to get the business with the ACCC having a close look at the Schweppes bottling arrangements for the Pepsi brand.

The cash sale price of the business is £550 million ($A1.19 billion), which is sightly more than market expectations.

Asahi Breweries

The Age reported that:

BusinessDay believes that unsuccessful bidders included Suntory, the Australian-based Coca-Cola Amatil (which has Coca-Cola as a 30 per cent shareholder) and P&N Beverages.

So I was close but no cigar.

Tim

Posted under Uncategorized

The AFR is reporting that Coca Cola will be an interested party in the bidding for the Australian Schweppes business. The reports states that;

“Atlanta-based The Coca-Cola Company holds special rights to negotiate with global giant Cadbury before anyone else on the sale of Cadbury’s Schweppes business in Australia”

This makes for an interesting scenario with the Coca Cola   Company owning 30.4% of Coca Cola Amatil which has rejected the Lion Nathan (Kirin) offer.

I understand that negotiations are well underway with a number of parties but a decision has been delayed for a number of months.

Tim

Posted under News

I have been saying it for a while, and still believe Schweppes will be purchased by Suntory.  Cadbury have confirmed they have put it on the table for sale.

Chief Executive Todd  Stitzer said that after a six-month review, the company had received sufficient interest in its Australian drinks business to be persuaded that a sale makes sense. The Australian drinks business is Cadbury’s last remaining beverage operation after it spun off Dr Pepper Snapple Group Inc. in the U.S. earlier this year.

You heard it here folks.

Tim

Posted under News

There were/are some very nervous Chinese based multi national executives over the past 3 months. As the Chinese Tainted Milk Scandal evolved and it was discovered the problem was more wide spread than just the SANLU products, we had even more indication of the Opaque nature of the Chinese Government.

Source: (Peter Parks/AFP/Getty Images)

The Olympics were on and the government had ordered that there was to be no bad news during this period that would affect the Games. So this is where the nervousness comes in. I have been told that many senior executives were removed from Mainland China for their own safety during this period.

The companies felt there was a risk of their people being held by authorities to keep the story hidden.  Well the story was buried for a number of weeks and who knows what damage and suffering this caused to poor helpless babies and children.

The story posted yesterday on the USNEWS web site by Paul Mooney gives a very good insight into the machinations and ramifications of this wide spread problem in China.

The scandal also raises the significant issue of Brand protection. Cadbury, Nestle and Unilever brands were all affected by the Melamine contamination and recalls internationally have been costly both financially but also to Brand Health.

Doing business in China is very different and negotiating with Central and Local Governments as well as with local partners is a very complicated business. The story was covered up and executives did flee China because they felt unsafe.

Why are we prepared to treat China differently? Is it because they scare us?

Tim

Posted under News