Cadbury has sending signals that it is receptive to Hershey's offer to purchase the company. Cadbury CEO Todd Stitzer has said that Hershey is a better cultural fit with Cadbury than Kraft Foods. Kraft has launched a hostile takeover bid for Cadbury, which Cadbury opposes.
The Financial Times reports:
Hershey, which has owned the license for the Cadbury brand in the US since 1988, is contemplating a bid for Cadbury after the decision by Kraft of the US this month to go hostile. If Hershey can finance the bid, it is likely to make a friendly offer.
Mr Stitzer told the Financial Times that the ethical values of the Cadbury brand -- founded by Quakers who marketed tea, coffee and cocoa drinks as alternatives to alcohol -- were similar to those of Hershey.
Milton Hershey, the US company's founder, was inspired by Cadbury's Bournville village in building his Pennsylvanian company town, Hershey.
"Both companies were founded by men of principle and vision who created company towns and supported charitable causes . . . There is quite a lot of cultural similarity," Mr Stitzer said on Friday. "I would prefer Cadbury to be in an environment where its values and principles could continue."
Mr Stitzer suggested that Cadbury's values, which he said included Fairtrade certification for some of its chocolate brands, could be lost if it were bought by Kraft, which is better known for processed cheese, instant coffee and bacon.
Stitzer pointed the sad case of Terry's Chocolate Orange, which was acquired in 1993 by Kraft. He noted that the spirit of the family that found the company is entirely gone.
Cadbury and Hershey seem like a match made in chocolate heaven, but Hershey hasn't made an offer yet; it is said to be trying to get the financing together. But it's running out of time. Kraft will post its formal offer for Cadbury on December 7 and then has 60 days to convince shareholders to sell.
