Lord Mandelson disappointed with Kraft Foods meeting
Just hours after Kraft Foods officially took control of UK giant Cadbury Lord Mandelson was having a personal meeting with Kraft Foods chief executive Irene Rosenfeld. The meeting was purely and simply an opportunity for the UK government to glean commitment from the new US parent company regarding UK jobs and the future stability of the UK operations. However, it looks as though the meeting with Irene Rosenfeld did not go to plan!
Despite the fact that Lord Mandelson was appreciative of the fact a personal meeting was organised at such short notice, Kraft Foods was unable to give any specific guarantees regarding UK jobs or UK manufacturing plants. However, the company did confirm it expected Cadbury's UK operations to be "net gainers" in the long run which is encouraging for those in employment with the company. The truth of the matter is that Kraft Foods is now free to do whatever it wants to the Cadbury operation although why would you spend £11.5 billion on a company and then rip it apart?
They will be cost savings to come through, they will be a reorganisation of the combined manufacturing capabilities and there will be potential job losses. However, the long-term future of Cadbury seems to be secure under the umbrella of Kraft Foods.
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