Thursday, 21 January 2010

Chocolate loss

The proposed takeover of Cadbury’s by Kraft is an example of destructive business practices encouraged by the banks and hedge funds. Massive amounts of money will be borrowed by Kraft, dubbed the plastic cheese maker, to perform this “buyout”, that debt will be loaded onto the resulting “Cadbury Division” weighing heavily on their profits and no doubt leading to cost cutting measures such as factory closures. No doubt within a couple of years Cadbury production will be shifted to oversea’s sites because it is deemed “too expensive” in the UK. However Kraft will still expect to sell the Cadbury product as British in the UK. There is no gain for “UK Ltd” in this sale and little gain by Kraft. The only people who gain from this further destruction of UK manufacturing is the banks funding the takeover.
I stopped buying Mars and Rowntree products when production was shifted out of the UK. I guess there is another name to add to the list.

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