Kraft Foods confirmed yesterday that it now has control of Cadbury, having secured 71.73% of the shareholding, with the remaining Cadbury shareholders expected to sell their shares. The UK confectionery company will be taken off

the stock market once Kraft holds 75% of the stock.

In a statement, Kraft Foods said it was 'pleased to announce that it has acquired control of Cadbury plc' and it added that this will effective create 'a global powerhouse in snacks, confectionery and quick meals with annual revenues of approximately $50bn and sales in approximately 160 countries.

Commenting on the takeover, Kraft Foods' Chairwoman and Ceo Irene Rosenfeld said: ‘The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals. Together we have impressive global reach and an unrivalled portfolio of iconic brands, with tremendous growth potential.

‘I warmly welcome Cadbury employees into the Kraft Foods family and look forward to meeting many of them in the days and weeks ahead. This combined company has a phenomenal future, and I firmly believe it will deliver outstanding returns to our shareholders.’

WHAT IT MEANS FOR TRAVEL RETAIL
As reported before, Kraft – the world's number one duty free and travel retail confectionery company – has effectively taken over the world's number five travel retail confectionery company with Cadbury. In duty free and travel retail, Kraft owns the number one confectionery brand Toblerone, with additional major brands such as Milka, Marabou and C?te d'Or. Cadbury successfully produces and markets brands such as Dairy Milk, Bassett's, Green & Blacks, Maynards and Trebor chewing gum.

Generation Research President Yngve Bia has already stated that the merger between the two companies will result in 'a powerhouse of gigantic proportions' with global sales of more than $50bn, of which about $500m will correspond to duty free and travel retail sales. For Kraft, it also represents a big opportunity for the company to seriously get into the confectionery sugar segment.

In 2008, global duty free and travel retail confectionery sales represented 1.7% – equal to US$2,652m of total global confectionery sales which are estimated at US$156.3bn.