Kraft's Cadbury Takeover To Squeeze Cocoa Suppliers?

US food giant Kraft's GBP11.6bn (US$18.2bn) takeover of UK confectioner Cadbury has created a new global confectionery giant. Analysts are already speculating as to what the impact of the takeover will be on the highly-consolidated cocoa farming industry, including what Kraft's strategy will be for Cadbury's fledgling Fair Trade chocolate venture. CFW believes that while further global industry consolidation would be necessary to trigger any dramatic transformation of the cocoa supply chain, the greater centralisation of sourcing to result from the Kraft deal should contribute to greater efficiencies.

To read the full article, please choose one of the following options: