A powerful Commons committee has warned it still has “significant concerns” about Kraft’s takeover of Birmingham-based chocolate-maker Cadbury.
The Business, Innovation and Skills Committee criticised US food giant Kraft for moving senior marketing roles to Zurich, Switzerland, saying it called into question Kraft’s commitment to respecting the Brtish heritage of the business.
And they said Kraft’s attitude was close to “contempt” after Irene Rosenfeld, the chief executive, refused to speak to the Committee.
Although she sent senior managers to answer questions, Ms Rosenfeld refused to speak to MPs directly, even over a video link.
The Committee, chaired by Black Country MP Adrian Bailey (Lab West Bromwich West), was investigating Kraft’s management of Cadbury following its takeover of the firm last January.
Other members include Margot James (Con Stourbridge) and Nadhim Zahawi (Con Stratford-on-Avon).
They condemned Ms Rosenfeld for refusing to speak to them in person, accusing her of “a regrettably dismissive attitude to a national Parliament”.
They urged Kraft to stop transferring marketing roles to Zurich, “given its oft-stated public commitment to Cadbury’s brand heritage”.
And the MPs accused Kraft of behaving “irresponsibly and unwisely” by promising to keep open a factory in Somerdale, near Bristol, only to close it once the takeover had been completed.
Ministers should change the law so that businesses were forced to keep promises they made during takeover battles, the MPs said.
But they welcomed Kraft’s investment in the Bournville site in Birmingham, which is to have an increased research role.
The MPs said: “While there remain some significant concerns about Kraft takeover of Cadbury, a number of positive signs may be beginning to emerge.
“Those positive messages would have been considerably more convincing if conveyed directly to bodies such as ourselves from the top of the organisation.”
Jennie Formby, national officer of the Unite union, said: “One year on from Kraft’s predatory purchase of Cadbury the workers are still none the wiser about the company’s commitments to its UK businesses.
"In fact, we now have less information about the company’s current state and future intentions than before the takeover.
“Workers look at Kraft’s horrendous multi-billion debt, consider its record in other countries where jobs have gone, plants have shut and wages have been cut, and rightly worry about what the future holds for them.”
Mr Bailey said: Although some concerns remain, notably around pay harmonisation and transfer of strategic brand management to Zurich, our committee was encouraged to hear of Kraft’s recent recruitment into research at Cadbury and its investment in Cadbury manufacturing in this country.
“We particularly welcome the commitment to extending Kraft’s international research activities at Bournville as well as the confirmation on the future of the Reading R&D facility.
“With 10 months left before the expiry of Kraft’s undertakings to our predecessor committee, we trust that Kraft will now signal an extension of its commitment to Cadbury UK into the medium term through further sustained investment.
"We hope too that the synergy savings to be made from the takeover will be invested back for growth at Cadbury UK.”
