• Bournville to become new global “Centre of Excellence” for Kraft Foods worldwide chocolate R&D
• Reading and Banbury also confirmed as global R&D centres for the combined company
• UK head offices proposed to be consolidated into Bournville and Uxbridge in order to speed decision-making and drive high-performance culture

10 May, 2010: Kraft Foods, maker of the UK’s favourite snack and confectionery brands, today announced its plans to make Bournville the heart of its global chocolate Research and Development, building on Cadbury’s tradition of quality and innovation there. 

The company plans to bring together Cadbury and Kraft Foods talent to create a global ‘Centre of Excellence’ for chocolate Research and Development.  The centre will drive new product development, new technologies and best practices for such beloved chocolate brands as Cadbury Dairy Milk, Milka, Toblerone, Côte d’Or, Terry’s, Flake, Creme Egg, Green & Black’s, Suchard, Freia, Marabou and Lacta.

Further demonstrating its commitment to R&D talent in the UK, Kraft Foods also announced that Cadbury’s Science Centre in Reading will become a global science and technology centre serving the combined company worldwide. 

The global centres in Bournville and Reading are in addition to Kraft Foods’ existing coffee R&D centre, which has been based in Banbury for more than 40 years and the global coffee Centre of Excellence since 1995. This centre has been responsible for driving innovation for the company’s multi-billion dollar global coffee business, which includes powerhouse brands like Kenco, Tassimo, Carte Noire and Maxwell House. 

In addition to R&D, Kraft Foods announced proposals to integrate its office network in the UK in order to strengthen collaboration and support a high performance culture amongst its combined UK management team and staff.  Instead of being spread out across separate office locations, it is proposed that the combined team will now be co-located in Bournville and Uxbridge, the site of the previous Cadbury head office. 

As a result, subject to consultation with employees, Kraft Foods UK would move from its office in Cheltenham in 2011 and management and staff would transition to the new offices over the next 18 months along with customer service teams from the company’s office facilities in Sheffield and Banbury.

Commenting on the announcements, Nick Bunker, President of Kraft Foods UK & Ireland said, “The UK is one of the company’s most important markets.  Kraft Foods has been here for more than 85 years and Cadbury, of course, was founded here.  I’m delighted by the company’s vote of confidence in the UK.  The skills and facilities we have here will enable us to build the UK’s favourite snacks and confectionery company and to drive global innovation for two of Kraft Foods’ largest categories worldwide, namely chocolate and coffee.”

“We would be very sad to leave Cheltenham and we would provide significant resources to support employees from all affected sites during the move. However, the business rationale is compelling. Having our R&D, customer service and support functions working side-by-side will enable us share more insights, act more quickly and execute more flawlessly, thereby accelerating our growth.” 

Bunker continued, “While the business case is clear, we need to support our people.  We have highly talented employees across all our sites and we would aim to support as many as possible to relocate. We will consult fully with all affected individuals about the implications and options available before a final decision is taken and allow as much time as we can for people to plan.” 

Today’s announcement follows last week’s publication of the combined company’s earnings for the first Quarter in which the company’s European results, including the UK, showed great progress.

Bunker commented, “The past few months have been an uncertain time for all employees. Despite this, we have continued to deliver strong growth. I am incredibly proud of what our people have achieved and I am confident that we have a phenomenal future together.”

Ends

About Kraft Foods

With annual revenues of approximately $48 billion, Kraft Foods is a global powerhouse in snacks, confectionery and quick meals. The company is the world’s second largest food company, making delicious products for billions of consumers in more than 160 countries. The portfolio includes 11 iconic brands with revenues exceeding $1 billion – Oreo, Nabisco and LU biscuits; Milka and Cadbury chocolates; Trident gum; Jacobs and Maxwell House coffees; Philadelphia cream cheeses; Kraft cheeses, dinners and dressings; and Oscar Mayer meats. Approximately 70 brands generate annual revenues of more than $100 million. Kraft Foods (www.kraftfoodscompany.com; NYSE: KFT) is a member of the Dow Jones Industrial Average, Standard & Poor's 500, Dow Jones Sustainability Index and Ethibel Sustainability Index.

Contacts:  

Kraft Foods
Jonathan Horrell: 01242 284997
Tony Bilsborough: 0121 787 2480

Brunswick Group: 020 7404 5959
Richard Jacques
James Olley