Corporate Social responsibility Case Study

Green & Black’s (Part B) - Cadbury Takes an Organic Step

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Abstract:
In May 2005, Cadbury Schweppes plc (Cadbury) took over the organic and Fairtrade chocolate company Green & Black’s (G&B). There were apprehensions whether the takeover would come in the way of the organic and Fairtrade image and commitments of G&B. G&B was the fastest growing confectionery brand. But the acquisition of G&B was not a total surprise to industry analysts, since Cadbury had been associated with G&B since 2002, when it bought a 5% stake in G&B.

In 2002, the U.K. chocolate market was nearing saturation with very little scope for growth. Only niche areas such as premium chocolates and ethically rooted products such as organic and Fairtrade chocolates were faring well. Consumers had become indulgent but ethical consumerism was on the rise. Faced with a cash crunch, G&B was on the look out for ways to finance its expansion and marketing plans. G&B also sought to reposition itself as a mainstream luxury brand and downplay its organic and Fairtrade credentials.

In 2005, Craig Sams (Sams) the founder of G&B was accused of having given in to the lure of money when he sold his share to Cadbury and G&B was taken over by the confectionery giant. Would the two players be successful in deriving the expected synergy out of the deal? Would the deal result in G&B losing its brand identity?

Pedagogical Objectives:

• To discuss the Fair Trade Movement in the UK and Europe
• To discuss the UK chocolate market
• To discuss Cadbury’s acquisition in a market that was saturated and how it would attain synergy.

Keywords : Corporate Social Responsibility Case Study, U.K. confectionery market, Chocolate market in the U.K. Green & Black's, Fairtrade, Corporate Social Responsibility, Ethical Trading, Craig Sams, Whole Earth Foods, Coca, Ethical markets, Ethical consumerism, Fairtrade Organisation, Organic chocolates, Organic foods, Fairtrade chocolates