Cadbury And Kraft Unite, But Will Consumers Taste Success?

Negotiations have ceased and Cadbury is now officially a Kraft brand, but it didn't come cheap: Kraft spent $18.5 billion. (What a difference one month makes since AP published a $19.5 billion estimate in January.) Nevertheless, Cadbury's majority shareholders agreed to an acquisition that will allow Kraft to take the reigns. 

Kraft's CEO and chairwoman, Irene Rosenfeld, explained that "the combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals. Together we have impressive global reach and an unrivaled portfolio of iconic brands, with tremendous growth potential."

The deal comes after five months of intense back-and-forth negotiations between the two brands. Such a pricey purchase, however, does have consequences, and many at the UK-based Cadbury will lose their jobs. But such sacrifices are protocol when forming a major conglomerate that is poised to take over grocery store shelves everywhere -- particulary during tough economic times.

Though the specific number of cuts weren't announced by Kraft, Cadbury employees fought back with a protest. Unite, the largest union in the UK, represented the workers. "Specific questions have been put to Ms Rosenfeld by our European colleagues, including will the takeover lead to the closure of existing plants and will there be lay-offs? All these questions need urgent answers," said spokesperson Jennie Formby.

As Cadbury, Kraft, and those affiliated with and affected by the merger cautiously look to the future, it is ultimately consumers who will determine whether or not the merger succeeds.