Blog: Cadbury's Fairtrade move leaves bitter taste - for some
Dean Best | 24 July 2009
As far as consumers are concerned, Cadbury seems to be in a phase of popularity (think the Gorilla ad, the Wispa revival and, now, the Faitrade push).
But, scanning the social networks so keen to cast opinion on Cadbury in recent months (the return of Wispa was largely driven by fans on Facebook), not everyone is so enamoured by Cadbury's move to switch Dairy Milk to Fairtrade.
One Twitter user could not decide whether the move to Fairtrade was a "good thing or a cynical thing".
Another was more decisive - labelling this week's news on Dairy Milk a "con".
"Price of Cadbury's bar of chocolate was raised some months ago 2 prepare consumers 4 their Fair Trade membership," said one NGO director based in Scotland.
Matthew Taylor, a consumer analyst at Datamonitor, stopped well short of calling the move a "con" but indicated that Cadbury's price hikes in recent months had been to pave the way for the Fairtrade switch.
"The Dairy Milk bar has increased in price to absorb some of the cost of switching to Fairtrade," he said.
However, the NGO's comments did raise an interesting point on price - and one just-food put to Cadbury yesterday.
"The price increases in 2008 were as a result of a number of factors including rising commodity and fuel costs," global corporate affairs director Alex Cole said. "Achieving Fairtrade certification is factored into our business costs. This is an investment in our brand just like other decisions on ingredient costs and marketing spend.
"We believe this is good for business and good for farmers, in order to secure the long-term viability of both cocoa farmers and our cocoa supply."
Consumers seem to broadly agree but, as ever, some elements - even on the social networks that have cheered Cadbury in recent months - are prepared to voice their disapproval
The BBC turned to just-food today for insight on the price dispute between Tesco and Unilever....
Just weeks after buying UK turkey processor Bernard Matthews from administration, food tycoon Ranjit Boparan has struck a similar deal....
Shares in Tyson Foods slumped on Friday, closing down almost 9% after an analyst claimed a lawsuit facing the company could hit the US meat titan....
- It won't just be Unilever to push for Brexit hikes
- Price an underlying tension across European FMCG
- Danone's Q3 sales - what the analysts say
- Interview: UK trade body on Brexit's policy impact
- Interview: UK trade body on the impact of Brexit
- Nestle lowers outlook on "softer environment"
- UK announces "action plan" to drive food exports
- China "transition" drags on Danone Q3
- Farmers' groups slam Danone over non-GMO stance
- Kraft Heinz: Innovation more important than ever
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Packaged Food: Quarterly Statement Q3 2016
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review