Kraft Foods and Cadbury Acquisition

Kraft Foods and Cadbury

Introduction

The confectionary industry all over the world is comprised of three products, that is, gum, sugar and confectionary. But the world-wide economic recession which in the last few years hit the North American and European markets, adversely affected the confectionary sales. In addition, undue pressure affected the sales volumes as more people moved towards healthier lifestyles, in attempt to avoid what they termed as unhealthy foods. In these developed countries, there are growing concerns about obesity and its side effects.

Confectionary makers are now making smaller packets so as to reduce the prices of the purchase which in a way is kind of addressing some of the concerns about unhealthy foods. This is done by...