Cadbury

Today I spoke Todd Stitzer, Cadbury’s chief executive about Kraft – and, crucially, the future. I wanted to know how do we turn today into a new future, with new jobs and a stronger life for the years to come.

Todd, I have to say, is as gutted as everyone else. But there are three rays of hope. First, there’s a big chance that the change will mean new sales especially in India, China and Russia; in fact Kraft think 5pc a year in growth is doable. Second, Todd thinks most cost savings will come from abroad, where the two businesses overlap most – while there’s some administrative crossover in the UK, there just isn’t much manufacturing crossover.

Third, and most important, Todd feels Cadbury’s Birmingham manufacturing base is the last place on earth Kraft would look for savings. Not only has Cadbury’s spent £300-400 million on Bournville in the last few years, but it’s physically impossible for anyone to make the amount of chocolate made in Bournville anywhere else in the world without spending hundreds of millions of pounds.

That means Kraft could be a net importer of jobs. Finally, I asked whether Kraft was going to be true to Cadbury’s traditions; he said he thought so, but it was too early to really guarantee it. Kraft’s chief executive is here next week. That’ll be our first chance to cross-examine her.

So, a very sad day. But our job now is to push hard to make sure Cadbury’s goes from strength to new strength, wins in new markets and grows jobs here in Birmingham. That’s the way we’ll seize a silver lining in Cadbury’s iconic purple wrappers.