Introduction

Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft

Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick

meals. With annual revenues of approximately $50 billion, the combined company is the

world's second largest food company, making delicious products for billions of

consumers in more than 160 countries. We employ approximately 140,000 people and

have operations in more than 70 countries. 

In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of

existence, it today has five company-owned manufacturing facilities at Thane,

Induri(Pune) and Malanpur (Gwalior),Bangalore and Baddi (Himachal Pradesh) and 4

sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in

Mumbai. 

Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk

Food Drinks, Candy and Gum category. In the Chocolate Confectionery business,

Cadbury has maintained its undisputed leadership over the years. Some of the key

brands in India are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. 

Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in

the world! Our billion-dollar brand Cadbury Dairy Milk is considered the "gold standard"

for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian

consumer. 

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.

Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft

Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick

meals. Currently Cadbury is the world's No.1 confectionery and biscuit company. It is

also the world’s second-largest food company with sales in approximately 160 countries.

Cadbury Brands

Cadbury Diary Milk

The story of Cadbury Dairy Milk started way back in 1905

at Bournville, U.K., but the journey with chocolate lovers

in India began in 1948.The pure taste of Cadbury Dairy

Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of

Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens &

adults. Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the

urge for 'something sweet' after meals. Cadbury Dairy Milk has exciting products on offer

- Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and

Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate.

Giving consumers an exciting reason to keep coming back into the fun filled world of

Cadbury.

Cadbury Dairy Milk has been the market leader in the chocolate category for years. And

has participated and been a part of every Indian's moments of happiness, joy and

celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian

chocolate market.

Cadbury 5 Star.

The Cadbury Temptations range is available in 5 delicious

flavour variants Roast Almond Coffee, Honey Apricot, Mint

Crunch, Black Forest and Old Jamaica. With its international

quality chocolate Temptations soon became a 

popular brand for "chocoholics". In India, Cadbury Dairy Milk

Eclairs has been the most preferred brand in the Eclairs

category for years and has always been a favourite with

consumers. Cadbury Gems occupies a very special place in

the hearts of kids; present and past. Its unique shape, size, colours and format instantly

set it apart. These tasty, colourful, chocolate buttons have become an integral part of the

lives of both children and adults.

Cadbury Bytes

Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly growing

packaged snack market. Cadbury Bytes is a one of a kind snack, in that it is sweet and

not salty, as compared to most of the other snacks. It's a bite sized snack with a crunchy

wafer and rich Choco cream filling. There are three variants of Bytes available in the

market - Regular, Coffee and Strawberry, at two price points- Rs 5 and Rs 10.

Cadbury Bournvita

The brand has been an enduring symbol of mental and physical health ever since it was

launched in 1948. It is hardly surprising then, that Bournvita enjoys a major presence in

the Malt Food market. Given its market share of 17%, Cadbury Bournvita reaches across

hundreds of cities, towns and villages through 3,50,000 outlets in India.

Manufacturing Process

Cadbury uses flow production to make hundreds of thousands of the same product with

machinery moving each one along a production line. Cadbury also uses batch production

– some machines are set to make different products at different times.

There are two stages in manufacturing food products:

Primary processing – converting raw materials into "food commodities" or

ingredients (at Cadbury, growing, harvesting and processing cocoa beans to make

cocoa mass).

Secondary processing – processing ingredients to make food products (at

Cadbury, processing cocoa mass to make chocolate products). 

Cadbury makes two types of chocolate:

Milk chocolate – Cadbury Dairy Milk, launched in 1905

Dark chocolate – Bournville, launched in 1908

Primary processing is the same for milk and dark chocolate, but secondary processing is

a bit different. The recipes have been developed over the years. Chocolate-makers

(Chocolatiers) use their skills to create well-balanced recipes that consumers like.

Primary Processing Stage 1

Cocoa and chocolate both come from cocoa beans which grow in pods on cocoa trees

(Theobroma cacao).West Africa is a major producer of cocoa beans, especially Ghana

and the Ivory Coast (Côte d’Ivoire). Malaysia, Indonesia, the Republic of Cameroon,

Nigeria, Brazil and Ecuador have also become significant producers.

Each cocoa pod contains 30–40 beans covered by a sweet, white pulp. The pods are

harvested (removed from the trees) by hand. Farmers cut the pods from the cocoa trees

with knives attached to poles. The pods are then split open using wooden mallets and

the beans removed and fermented or cured, which helps to develop the beans’ chocolate

flavour.

After drying, the fermented beans are weighed and packed into sacks for sale and then

transported by ship to Liverpool. Strict quality control tests take place when the cocoa

beans are bought from the farmers and during transportation to ensure high standards.

Primary Processing Stage 2

Chocolate is not just ground-up cocoa beans. Raw cocoa beans taste very bitter, and

must be processed before they can be used to make chocolate products.

Cocoa beans arriving by ship in Liverpool are transported to Cadbury’s purpose-built

cocoa bean processing factory at Chirk, North Wales. Chirk operates 24 hours a day,

seven days a week to process 50,000 tonnes of cocoa beans each year.

When the beans arrive at the factory, they are emptied out onto a moving belt, sorted

and cleaned to remove dust and stones.

The beans move through a continuous roaster (a revolving drum with hot air passing

through it). During roasting, the shells of the cocoa beans become brittle. The cocoa

beans darken in colour and acquire their distinctive chocolate flavour and aroma.

The beans are broken down (kibbled) into smaller pieces (nibs). The broken shells are

blown away (winnowing). The nibs are then ground down into a thick, chocolate-coloured

liquid called cocoa mass or liquor, which is rich in cocoa butter. This is one of the main

ingredients of all chocolate products.

Secondary Processing

'Making chocolate'

The following stages take place during the primary processing of cocoa beans needed to

turn them into various chocolate products:

1. Harvesting of the cocoa beans by the grower

2. Fermenting or curing of the beans by the grower

3. Transportation of the beans to the cocoa bean processing factory (Chirk)

4. Sorting and cleaning the beans at the factory

5. Roasting the beans in a continuous roaster at a temperature of 135°C

6. Kibbling of the beans into nibs

7. Winnowing to remove shells.

8. Grinding the nibs into cocoa mass

After primary processing, secondary processing takes place. Different secondary

processing is needed to make different chocolate products.

The following secondary processing stages take place to make cocoa powder and

drinking chocolate:

1. Removal of about half the cocoa butter from the cocoa mass in heavy-duty

presses leaving a solid block of cocoa (the cocoa butter that is removed is not

wasted – it can be used to make chocolate)

2. Pulverisation of the solid block of cocoa remaining into a fine, high-grade cocoa

powder

3. Addition of sugar and natural flavourings to make drinking chocolate

4. Addition of malt extract to make malted drinks such as Bournvita

The following secondary processing stages take place to make dark chocolate:

1. Addition of sugar and cocoa butter to cocoa mass to make a paste

2. Drying of the paste

3. Grinding of the paste with cocoa butter

4. Special mixing and cooling finishing processes (conching and tempering ) take

place, developed to reduce the thickness of the liquid and make sure that the fat

settles in a particular way to make sure the chocolate has a glossy, smooth

texture and appearance

5. Liquid chocolate is poured into bar shaped moulds, shaken and cooled before

continuing along the production line to high-speed wrapping plants.

The following secondary processing stages take place to make milk chocolate:

1. Transportation of cocoa mass to Marlbrook, the milk processing factory

2. Cocoa mass mixed with liquid full cream milk and sugar, condensed to a rich,

creamy liquid, and dried to produce chocolate crumb

3. Transportation of chocolate crumb to Bournville

4. Grinding of the chocolate crumb with blended with cocoa butter and flavourings.

5. Special mixing and cooling finishing processes (conching and tempering ) take

place, developed to reduce the thickness of the liquid and make sure that the fat

settles in a particular way so the chocolate has a glossy, smooth texture and

appearance

6. Liquid chocolate is poured into bar shaped moulds, shaken and cooled before

continuing along the production line to high-speed wrapping plants. 

Countlines

At Cadbury, individually-wrapped, chocolate-covered bars, such as the Cadbury

Crunchie, Boost, Time Out or Double Decker, are called countlines because they are

sold by numbers rather than by weight. Countlines tend to be eaten as a treat. These

products are made by the enrobing method, where the centres pass on a continuous belt

beneath a curtain of liquid chocolate.

Moulded Bars

Moulded bars are made by pouring liquid chocolate into bar-shaped moulds, for example

the Cadbury Dairy Milk range. They may have added ingredients, such as nuts, raisins or

biscuit pieces, and they come in different sizes. Products like the Cadbury Caramel are

made by setting a layer of chocolate in moulds, adding the filling and sealing the base of

the bar with a layer of chocolate.

Assortments

Assortments are boxes of chocolates with a variety of different centres, such as Cadbury

Milk Tray, Heroes or Roses, which are bought as gifts or for sharing. These are either

made by enrobing or shelling. During shelling, liquid chocolate is deposited into a mould

to form a shell. The centre is then put inside the shell, which is sealed.Cream-centred

bars are made by the same process, as are the seasonal novelties such as Easter Eggs

and Creme Eggs.

'Processing chocolate'

The following steps are involved in processing cocoa to make chocolate:

1. Cocoa pods harvested by hand

2. Cocoa pods split open using wooden mallets to extract beans

3. Grower ferments and cures the beans

4. Fermented beans are dried then weighed,  packed and shipped

5. Beans sorted and cleaned on a moving belt

6. Beans roasted in a continuous roaster

7. Roasted beans kibbled into nibs

8. Winnowing to remove shells

9. Nibs ground into cocoa mass used to make chocolate

The Packaging Development Process

At any point, Cadbury will be working on 70–80 packaging developments for new

products, new presentations of existing products or product relaunches. Several

departments work closely on this – e.g. Marketing, Design, Packaging Development,

Product Engineering and Quality Control – all will have different view points.

Firstly, the whole team assesses the product’s packaging needs

Ideas are also thoroughly tested to make sure that they can be made using

Cadbury’s machinery and that they will stand up to handling and distribution

Designs are fine-tuned until the packaging meets all the requirements

The material specifications are agreed with the chosen suppliers

The factory quality control department ensures that quality levels can be met

Packaging Materials

A number of things have to be considered when choosing packaging materials:

chocolate is very sensitive to taint (it picks up other flavours and odours easily)

the packaging comes into direct contact with the product and so must be safe

many chocolate products can pick up moisture and become sticky

others lose moisture, dry out and become tough

wherever possible the materials must be recyclable

A range of different materials are used:

Paper is used for labels, wrappers, liners and in laminates. Paper may be finished

with grease resistant, wax, plastic film or emulsion treatments

Board is used to make boxes as it is stiff and can be coated, laminated, treated

and printed to change and improve the way it looks

Traditional plastics

Bio plastics (cornstarch)

When packaging is being designed, production techniques must be taken into

consideration. Modern high-speed packaging lines can work to very specific

requirements.

Systems and control

Sophisticated tools and knowledge of various control technologies (mechanical,

electronic / computer, pneumatic) are needed to design and manufacture any product.

This is just as true of a factory that produces chocolate as one that produces mobile

phones or cars. For example, Cadbury Creme Eggs used to be individually wrapped and

the process was labour-intensive. Fully automatic egg machines now mean that a series

of mechanical operations have replaced human handling. This means quicker production

time and fewer blemishes on the product

Mechanism

Like any other machinery, industrial machinery is

essentially a set of mechanisms. These may be

simple or very sophisticated, but at heart they are a

combination of gears, belt and chain systems and

linkages. Generally, mechanical systems are powered by rotary or linear electric motors

or solenoids, which in turn are controlled by an electronic control system. The next six

screens take you through various types of system.

Belt and Chain Systems

Belt and chain systems use a belt stretched

between two pulleys or a chain stretched between

two cogs, so that when one pulley turns, the belt

turns the second one.

Belt and chain systems are used extensively in

the Cadbury factory to move the chocolate

products between the various manufacturing

stages.

Computer Control

At the centre of any production system is a computer control system.

The computer control system ensures that the production operations happen in the

correct order by controlling the electrical and pneumatic machinery.

It also monitors the production system, checking for problems using a wide range of

sensors. If a problem is detected the control system is able to take action to fix the fault

or, if necessary, stop the relevant machines and alert a human operator.

Data from the monitoring system are recorded both so that the productivity of the plant

can be tracked over time and also to provide a log of machine failures.

At Cadbury, these operations are managed by three kinds of computer system:

1. Production line monitoring

Software running on a Windows PC provides a graphical representation of the production

line, showing the operator exactly what the line is doing. The operator can also view a

historical record showing what the production line has been doing in the form of trends,

reports and alarm messages.

Operators can both supervise the line and also step in to override the main control

systems, for example to switch a part of the line off for maintenance.

The collection of software and hardware used for monitoring is called a Supervisory

Control and Data Acquisition (SCADA) system.

2. Production line data collection

Recorded data, such as temperatures, production quantities and faults, are continuously

sent to a separate set of computers and stored. Production staff can retrieve and analyse

several years’ worth of data.

3. Production line control

Programmable Logic Controllers (PLCs) carry out the second-by-second control of the

manufacturing machinery. A PLC is a dedicated industrial controller, containing a

microprocessor, memory and the ability to communicate with a large number of input and

output devices. These measure the state of the plant (providing, for example, information

on temperature, pressure, position, speed) and change the state of the plant (for

example opening valves, running pumps, turning heaters on and off).

Pneumatics

Pneumatic systems use compressed air to operate

the mechanisms in a machine, instead of using

electronic and electrical devices.

Pneumatic systems are particularly useful where a

large force is needed. Providing power to the

device uses relatively cheap components (air lines),

whereas an equivalent power solenoid needs thick

copper wires and a large coil to move the armature,

which generates heat.

Valves are used to control the flow of air in a pneumatic system. Valves can be switched

mechanically, by the pneumatic system itself or more usually, electronically. This means

that pneumatic devices can be integrated into a computer control system.

Pneumatics are used a lot on the Cadbury production line, e.g. during the manufacture

and moulding of the Cadbury Dairy Milk range, when various fluids have to be pumped

around and mixed.

The pipes that the liquid ingredients are pumped along are up to 150mm in diameter and

the process valves that control the flow of these ingredients are correspondingly large.

Process valves (not to be confused with pneumatic valves) are like taps that can be

opened and closed to control the ingredient flow. Each process valve is operated by a

pneumatic cylinder that is in turn operated by a pneumatic valve. This pneumatic valve is

switched using a solenoid, allowing it to be operated by the electronic control system.

Once the products have been moulded they are placed on a conveyor belt system that

carries them through the various stages of cooling and packing. Pneumatic devices are

also used here; if damaged products are detected, high pressure air is used to simply

blow them off the line into a bin.

'Assembly line'

The manufacturing stages involved in producing Cadbury Dairy Milk are as follows:

1. Ingredient mixing

2. Heating

3. Transport of liquid Cadbury Dairy Milk

4. Moulding

5. Transport of moulds

6. Cooling

7. Transport of solid Cadbury Dairy Milk

8. Wrapping

9. Transport of wrapped bars

10.Boxing

Cadbury uses flow production to make hundreds of thousands of the same product, with

machinery moving each one along a production line. Cadbury also uses batch production

– some machines are set to make different products during different shifts. Machinery is

often used on flow and batch production lines to make things quicker and reduce human

error. This is called automation.

Cadbury Creme Eggs are made using automated flow production:

Melted chocolate is poured into special half-egg moulds.

The moulds move down the production line where they are filled with the fondant

egg white.

The half eggs move to another section where the fondant egg yolk is added.

The tops of the eggs are put on each egg, and they are individually wrapped.

Workers on the production line work a 12-hour shift. This may be 12-hour days or

nights. They have two 18 minute breaks during the shift and a meal break of 42

minutes after six hours. They will work for four days and then have four days off.

Creme Eggs are wrapped at a rate of 320 eggs a minute.

The Creme Egg production line makes 600,000 eggs every 12-hour shift – that’s

the equivalent weight in Creme Eggs of about three elephants!

Cadbury Creme Eggs are available in more than 11 countries including the UK,

US, Spain and Singapore.

There are 450 employees on the production lines during every shift.

Stock control is just-in-time (JIT) – Cadbury carry stock of packaging materials for

the next two to three days. JIT systems keep the stock levels to a minimum and

rely on the delivery of materials just when they are needed.

  'Production Processes'

Features of job production include:

1. Unique one-off order

2. Ability to change specifications at any stage

3. Work is likely to be varied

4. Labour costs can be high

5. Lead times likely to be lengthy

Features of batch production include:

1. Can result in stocks of partly finished goods, which take up space

2. High level of coordination needed to schedule different orders

3. Used in factories producing a number of similar products

4. Used in factories for seasonal items or products

Features of flow production include:

1. Very large quantities are usually produced

2. Production lines can operate 24/7

3. Standardised products

4. Company likely to enjoy economies of scale

5. Very high set up costs

SWOT Analysis of Cadbury

Strengths

Cadbury is the largest global confectionery supplier, with 9.9% of global market

share.

High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)

Strong manufacturing competence, established brand name and leader in

innovation.

Advantage that it is totally focused on chocolate, candy, chewing gum, unique

understanding of consumer in these segments. Successfully grown through its

acquisition strategy.

Weaknesses The company is dependent on the confectionery and beverage market,

whereas other competitors e.g. Nestle have a more diverse product portfolio,

where profits can be used to invest in other areas of the business and R&D.

Other competitors have greater international experience - Cadbury has

traditionally been strong in Europe. New to the US, possible lack of understanding

of the new emerging markets compared to competitors.

Opportunities New markets. Significant opportunities exist to expand into the emerging

markets of China, Russia, India, where populations are growing, consumer wealth

is increasing and demand for confectionery products is increasing.

The confectionery market is characterized by a high degree of merger and

acquisition activity in recent years. Opportunities exist to increase share through

targeted acquisitions.

Key to survival within the FMCG market is increasing efficiency and

reducing costs.

Cadbury Fuel for Growth and cost efficiency programmes seek to bring cost

savings by Moving production to low cost countries, where raw materials and

labour is cheaper.

Reduce internal costs - supply chain efficiency, global sourcing and procurement,

and wise investment in R&D

Innovation is key driver. To respond to changes in consumer tastes and

preferences -healthier snacks with lower calories need to be developed. R&D and

product launches have led to sugar-free & centre filled chewing gum varieties and

Cadbury premium indulgence treat. Low-fat, organic and natural confectionery

demand appears strong.

Threats

Worldwide - there is an increasingly demanding cost environment,

particularly for energy, transport, packaging and sugar. Global supply chain in low

cost locations.

Competitive pressures from other branded suppliers (national and global).

Aggressive price and promotion activity by competitors - possible price wars in

developed markets.

Social changes - Rising obesity and consumers obsession with calories

counting.

Nutrition and healthier lifestyles affecting demand for core Cadbury products