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INTRODUCTION TO CADBURY

INTRODUCTION TO CADBURY

Discuss INTRODUCTION TO CADBURY within the Marketing Management forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Cadbury's presence in India dates back to 1948, when the parent Cadbury Schweppes set up a wholly owned subsidiary Cadbury ...

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INTRODUCTION TO CADBURY
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INTRODUCTION TO CADBURY - October 15th, 2010

Cadbury's presence in India dates back to 1948, when the parent Cadbury Schweppes set up a wholly owned subsidiary Cadbury Fry (India) Ltd. Cadbury, a subsidiary of Cadbury Schweppes is a dominating player in the Indian chocolate market with strong brands like Dairy Milk, Five Star, Perk, Gems, etc. Dairy milk is the largest chocolate brand in India. Chocolates & Confectionery contribute to 75% of Cadbury’s turnover. Cadbury also has a strong brand Bournvita in the malted health drink category, which accounts for 24% of turnover.


Cadbury was originally incorporated as a wholly owned subsidiary of Cadbury Schweppes Overseas Ltd (CSOL) in 1948. The company’s original name was Cadbury Fry (India) Ltd. In 1978, CSOL diluted its equity stake to 40% to comply with FERA guidelines. In 1982, the name was changed to Hindustan Cocoa Products. The parent holds over 90% of the equity capital after the first open offer. A second open offer has been made to buyback the balance shareholding, after which the company would operate as a 100% subsidiary of Cadbury Schweppes Plc.


Over the years, the company attempted several diversification in food category, albeit with little success. In 1986, Cadbury forayed into biscuits with Cadbury Butter, Glucose and Bournvita brands. The business however, could not take off and was discontinued 3-4 years later. In 1989, Cadbury diversified into ice creams with Dollops and Lopstop brands, which were sold off to Brooke Bond in 1994.
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