Question

What could Kraft gain to enhance its business and corporate performance through the Cadbury buyout?

Answer 1

Kraft was attracted towards Cadbury due to the strong performance of cadbury in the times of an economic crisis. The takeover would be of the biggest advantage to Kraft as this would push Kraft as the number 1 dealer in confectionary. This merger would allow Kraft to gain a foot hold in the fast growing chewing gum category.

This combination would allow both the companies to boast a portfolio of over 40 confectionary brands, each would be having an ability to generate sales of over $100 million.