Kraft issues apology over Cadbury factory closure
US food giant Kraft today issued a public apology for raising hopes that a doomed Cadbury factory could be saved and issued a two-year guarantee on jobs after facing a furious attack over its controversial takeover of the chocolate-maker.
Executive vice president Marc Firestone was subjected to a two-hour grilling by MPs on the cross-party Business Select Committee, who accused his firm of "pillaging" the iconic British company.
Union leaders complained that thousands of British workers have been left fearing for their jobs after Kraft's multibillion-pound takeover, especially as the US firm changed its mind about keeping open the Somerdale factory near Bath.
Kraft said while it was bidding for Cadbury that it would keep the plant open, but later changed its mind, announcing the site would close with the loss of 400 jobs.
Mr Firestone issued the first public apology since the closure was confirmed last month, telling the MPs: "We are sorry to the people who we disappointed.
"We fully understand that for over two years colleagues at Somerdale had been under a closure programme and our statement created uncertainty, and when we announced we would not take it forward, hopes were dashed. We are terribly sorry for that."
As he issued the apology, Amoree Radford, who campaigned to keep the factory open, burst into tears in the public area of the committee room and later left looking distraught.
Mr Firestone drew gasps of surprise from Cadbury workers sitting behind him, and from some of the MPs on the committee, when he said that Kraft was not fully aware of Cadbury's plans to transfer production from Somerdale to two sites in Poland, including a new factory.
Only after the takeover was completed did Kraft discover that millions of pounds of equipment had been bought for the new Polish factory, he said, adding that the US firm did not know that Cadbury had already invested "enormous resources".
One MP was heard to say: "That is nonsense," while Labour MP Roger Berry interrupted: "Are we seriously being asked to believe that Kraft, with all the resources at its disposal, could get this so spectacularly wrong? You knew that a lot of people were going to have their expectations raised."
Mr Firestone continued: "I can see the sense of disbelief, but we had no prior access to that information. Of course we were aware that Somerdale was being closed, but we were not aware of Cadbury's plans for massive investment in Poland."
Mr Berry accused Kraft of "misleading" workers about the chance of saving their jobs to boost their takeover bid, drawing applause from workers and union activists.
Brian Binley (Conservative Northampton South) said many people believed Kraft lied about its intentions for the Somerdale plant, adding that the firm was fully aware that a new building had been erected by Cadbury in Poland.
"What did you think it was going to be used for - tennis courts?"
Mr Firestone later told the committee that for the next two years there will be no further closures or compulsory redundancies among manufacturing workers.
