People well acquainted with the confectionery industry here say that it is an industry that needs to be encouraged. Although Cadbury has over 35 percent share in confectionery (with two candies, Halls & Eclairs and one bubblegum named Bubbaloo), there is lots more that can be achieved here.
According to sources, Kraft could influence Cadbury’s international portfolio in order to enlarge the confectionery business. Anand Kripalu, Managing Director, Cadbury India, and President, South Asia and Indo-China, for the combined Kraft Foods entity (tentatively named), refused to reveal any information on this or let the media know anything about the launch of their products. He said, “I cannot comment on the integration and how it will pan out. Kraft in India is small. Three products are being distributed — Tang, Toblerone and Oreo. At some stage in the future, the operations of this will be routed through the merged entity. It is too early to speak about the integration at this stage.”
An executive of an opponent FMCG firm says: “The purpose of the Cadbury acquisition was to give Kraft a strong presence in chocolates and confectionery — two areas they see as high-growth and high-margin. It makes sense to give the confectionery business a boost. It’s in line with their global strategy.”
Kraft is also likely to devote its attention to biscuits besides confectionery, as per reports.