|Name||Cadbury (Mondelez International is the parent company)|
|Industry||Food & Beverages|
|Revenues||$ 27.84 Billion, 2021|
|Profit||$ 4.31 Billion, 2021|
|Competitors||Hershey’s, Mars, Nestle.|
Cadbury is one of the leading British multinational brands in the food & beverages sector, by being the subsidiary of Mondelez International. It is headquartered in Middlesex, UK, founded by John Cadbury in 1824. It mainly offers Dairy Milk, Caramel, Wispa, Boost, Flake, Chomp, Curly Wurly, and so on. According to Yahoo Finance (2021), it has a market capitalization of $84.46 billion, showing it covers the huge market share among its competitors.
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Table of Contents
Cadbury Strengths 2021:
- Financially Strong Parent Company.
Cadbury belongs to Mondelez International, since 2010. In March 2021, the group company reported annual revenue of $ 27.84 billion with an increase of 4.13% from last year. Moreover, the company observed a 0.77% increase in net income and reached $ 4.31 billion in 2021 (Macrotrends, 2021). This reflects that Cadbury, being a subsidiary of Mondelez International, has a strong financial position, representing the company’s stability and going concern status.
- Strong Research & Development.
Cadbury is famous for investing a heavy amount annually in research and development, in order to innovate new and different types of chocolates. According to Challis (2019), the company invested £ 4.7 million in its Reading Science Centre to develop 30% reduced sugar chocolate bars. Such huge investments allow the company to retain its position as the market leader by gaining more loyal customers, who only prefer to buy its chocolates.
- Global Presence.
Cadbury is a British multinational confectionery company, currently operating in more than 50 countries of the world. However, it has a strong presence in big markets, such as Australia, India, China, and the UK (Cadbury, 2021). Such huge level operations allow the company to ensure a large number of sales annually in major markets of the world to generate more profits. Moreover, it employs more than 50,000 employees all across the world.
- Socially Responsible Company.
Cadbury is regarded as a highly socially responsible company. Recently, it started a program with the name “Cocoa Life”, in which it directly deals with the cocoa farmers to provide them community planning and training skills, helping them to build their future. Since 2012, it has touched many aspects of life, starting from providing training to local communities to supporting the local economy for their betterment (Cadbury, 2020).
- Strong Market Share.
Cadbury is considered to be the leading confectionery company worldwise, known as an extremely powerful brand. According to Wunsch (2021), Cadbury has a market share of 13.7% of the whole chocolate companies, ranked as the second after Mars with a 14.4% market share. This shows the strong brand presence of Cadbury in the global market.
Cadbury Weaknesses 2021:
- Pricy Products.
Most of the marketers think that Cadbury charges premium prices for its chocolates than its competitors. Therefore, it can target a special segment of people, because some price-conscious markets may tend to opt for the low price products.
- Product Recalling.
Since the start, Cadbury has faced multiple events of product recalls. In 2019, Cadbury recalled Dairy Milk Little Robins, because almonds were found inside it that were not mentioned on the label, showing that the product was incorrectly packed (Food Standards Agency, 2019). Moreover, in 2007, the Cadbury Easter Eggs were claimed as allergic-free but it caused allergies to nut allergic patients. Such events greatly affect the reputation of the company.
- Limited Product Portfolio.
Cadbury has a limited range of products, only in the chocolate and confectionery market. Even in the last many decades, the company has not expanded its portfolio in other food category items, causing the business to have limited exposure in the market.
Cadbury Opportunities 2021:
- Emerging Market.
In the past few years, emerging economies, such as India and China have observed a significant increase in the demand for the confectionery products, such as chocolates. According to Lindell (2020), it is expected that the global cocoa and chocolate market will reach $ 67.22 billion by the end of 2025 from $ 43.13 billion in 2017. This reflects that Cadbury can get a significant advantage from such expected growth to increase its market share further and become the market leader.
- Introduction of Healthier Products.
Generation Z and Millennials are very conscious about their food and diet, forcing the food companies to follow the health-conscious trends by providing healthier products to the customers. Cadbury, being the leading confectionery industry, has launched low calories chocolate, and provided more options to the company for entering into health-conscious products line for getting more customers.
Cadbury Threats 2021:
- Fierce Competition.
The confectionary industry is highly competitive, as both local and international brands fight for getting market shares. Mars, Hershey’s, Nestle, and Kraft Foods are the major competitors of Cadbury, as they constantly strive hard to get and retain the market share, which poses a high risk to Cadbury.
- Health Consciousness.
Over the passage of time, people have become more conscious about their health, which has posed a serious threat to confectionery and sugary products companies. Numerous studies have highlighted the negative impacts of processed and sweet foods, such as chocolates, which can decline the future demand for Cadbury.
Cadbury SWOT Analysis Conclusion:
In conclusion, Cadbury is a multinational confectionery brand, operating under the banner of the strong brand Mondelez Internationation. Due to financial group support and global presence, Cadbury has managed to be on the second in companies having the market share of chocolates. While huge competitors, such as Nestle, Mars, and Hershey’s posed a serious threat to the future profits of the company, but Cadbury can expand its operations to other food businesses by seeing the growing demand for confectionary till 2025. However, increasing health consciousness among people has put Cadbury at a disadvantage in terms of selling their high sugary chocolates.
- Cadbury, 2020. 100% SUSTAINABLY SOURCED COCOA.
- Cadbury, 2021. A FORCE FOR GOOD IN THE WORLD.
- Challis, D., 2019. Mondelez invests £ 4.7 million in R&D, creating 50 roles. Foodmanufacture.
- Food Standards Agency, 2019. Mondelez UK recalls Cadbury Dairy Milk Little Robins because of undeclared almonds.
- Lindell, C., 2020. Global cocoa and chocolate market projected to reach $67.22 billion by the end of 2025. Candyindustry.
- Macrotrends, 2021. Mondelez Revenue 2006-2021 | MDLZ.
- Wunsch, N.-G., 2021. Leading chocolate companies worldwide 2016, based on market share. Statista.
- Yahoo Finance, 2021. Mondelez International, Inc. (MDLZ).