Letter To Irene Rosenfield Kraft CEO
LETTER TO IRENE ROSENFELD KRAFT CEO
26th February 2010
Dear Irene Rosenfeld,
Kraft insists that it is a company that admires Cadbury, its heritage and its British employees.
Brief history of Fry's/Cadburys in Bristol
Chocolate making began in this country in Bristol in 1728, originally known as Fry's. The Fry's family moved production from Bristol to Somerdale, a couple of miles down the road into Keynsham, almost 90 years ago. Cadburys took over Fry's not long after the move to Somerdale - it was an amicable takeover as both the Fry's and Cadbury families were like minded being sincere and dedicated employers.
The Fry's social club was built specifically for the employees of Somerdale, their families and the local communities. Both the factory and club have walked hand in hand with the local community ever since.
Americans appetite for History
The town of Keynsham nestles between two of the UKs most attractive and visited cities. On one side is the beautiful city of Bath, the UKs only world heritage city, to include its Cathedral and famous Roman Baths. Whilst on the other side there is Bristol, world famous for Brunel's engineering, the docks and theatres and the birth place of chocolate making 282 years ago.
Americans flock to these two cities with an almost unquenchable thirst for history.
Understanding the passionate desire to embrace the magnificent historic jewels we hold here, it is almost beyond comprehension that Americans should wish to destroy 282 years of successful chocolate manufacturing history.
UK success story
Somerdale is this very success story. Nowhere else can a 282 year old, productive and profitable manufacturing company be found. The figures for the factory are outstanding; with no long term investment for years and under threat of closure Somerdale stretches all boundaries. In 2009 the predicted tonnes for Somerdale were 39,041 the actual tonnes were 42,246.
Somerdale produces 98% of chocolate solely for British consumption.
Employees at Somerdale
Almost as enticing and captivating as the local UK history, are the Somerdale employees. Over 282 years, lines of ancestors have followed each other in producing chocolate for Great Britain. When asked how and why the employees are so dedicated, they reply, "You can't explain it, it's in the blood." "It's a generation thing; it's something that uncontrollably sores through your veins." One thing is plain to see, that the Somerdale employees give their everything and are totally committed.
In return Kraft has treated the Somerdale employees with the utmost cruelty.
Kraft's intention to invest in Somerdale
Quote from Nick Bunker M.D of Kraft H/O and V.P of UK and Ireland, "...we are sincere in our intentions and clear that we want Somerdale to form part of a combined business going forward."
Kraft's H/O is in Cheltenham 40 miles from Somerdale (I personally know this as I travel there once a week to visit my Dad who still lives there). Local and national media, press and T.V have continued to inform and update the British public over the past 2½ years of the closure of Somerdale and the move of production to Poland.
A website was set up to help keep people in touch with the situation. www.savecadburys.co.uk I contacted Nick Bunker and informed him of the campaign and website explaining the devastation financially, economically, socially and environmentally the closure would have. I also said, "I hope it will help to give Kraft an insight into the general background which may lead to assist Kraft with its takeover plans." Nick Bunker emailed me back confirming he was aware of the campaign and website and replied "I am sure you are aware of our statements about the Somerdale and Bournville sites." He also said "I have passed a copy of your letter to our team." (26/11/09)
Kraft securing Cadburys.
Kraft has spent a vast amount of money to secure Cadburys. No doubt Kraft was very careful to secure the best ‘team' to carry out their financial studies from all directions and on all ‘subjects'. A lot of this money was spent on ‘investigations' and having spent so much money Kraft would surely want no stones unturned and all in their house ‘in order' for fear of not being able to be sincere about any pledges.
It would be only fair to say that, a person would have to have been living in outerspace for several years to not know (a) How productive, profitable and successful Somerdale is and (b) at what stage the Polish factory was at.
Facts
Union officials have constantly asked Kraft not to reiterate their intentions to invest in Somerdale and Kraft's intention to keep it as a part of its future if these pledges were not being said with honesty and sincerity. Kraft also ignored repeated requests for meetings and discussions over its future.
Kraft was sent details of the ‘time line' of employees at Somerdale being made redundant as the factory runs down its lines of production.
I have emailed Kraft at Cheltenham H/O on a number of occasions and in my original letter to Nick Bunker I wrote that Kraft had ‘done their homework' on Somerdale in realizing the potential at Somerdale for further manufacturing along with its high productivity levels and profits. There have been various occasions when Nick Bunker could have corrected me if none of this had been the case, but he chose not to, leaving me (and others) to continue to believe I was correct.
The British Government has been led to believe your pledges to be sincere.
There have been various interviews through different media sources where both Nick Bunker, yourself and other Kraft persons have continued to pledge your intentions to invest in both Somerdale and Bournville. In an open letter Nick Bunker said, "We've said since the start we would invest in British manufacturing jobs. In fact, we offer the best prospects for British manufacturing jobs, because a combined company would be better for factory workers than Cadbury standing alone or being broken up by others."
Sale of factories ............. Investment
The pizza company you sold to Nestle, we understand, was to secure a higher (cash) bid for Cadburys.
The European Commission has instructed Kraft to dispose of Cadbury activities related to producing chocolate in (Wedel) Poland and (Kandia) in Romania - Money that could, and should, be being used for Kraft to invest back into the Cadbury sites in Great Britain, the Motherland for ALL chocolate production to return to, if produced in a Polish factory. This is just one way your words of sincerity for investment in Somerdale would be able to remain true.
Hershey's were ‘in the wings' we were led to believe, of the stage set for the enactment of the Cadbury v Kraft scene. The factory in Poland could be a fine buy for Hershey's, its sale could mean more investment for the British manufacturing jobs Kraft were sincere about investing in.
Why Kraft's pledges were believed
Somerdale is both profitable and productive with huge potential of further manufacturing there.
In my letter to Nick Bunker, "It appears that Kraft have done their homework as far as the Cadbury factory at Somerdale is concerned having picked up on the fact that its closure and relocation is a negative move." He never gave me any inclination that Kraft was thinking otherwise, although he had ample opportunity.
Reasons to keep production at Somerdale and not in Poland
Briefly:-
Somerdale is a productive and profitable site, even without long term investment and being under threat of closure.
There are dedicated, loyal and experienced employees at Somerdale.
European revenue per employee = £102,500
UK and Ireland revenue per employee = £222,631
Production would be kept at source for the sole consumers of Somerdale Cadbury production, the British public.
If a ‘new build' was chosen to continue production at Somerdale, the transition would be over meters as apposed to 1,200 miles. (see website for proposal of ‘new build' at Somerdale)
There would be no unnecessary plundering of resources.
There would be no irreparable damage to our environment through transportation of ALL chocolate back to the Motherland.
There would be no extra 7 million food miles to be travelled while returning Cadburys chocolate back to Great Britain for sole consumption.
The cost of transporting Cadbury chocolate would be kept to a minimum.
The delivery of Cadbury chocolate to the UK shops would not be hindered by foreign laws over transportation. Urgent orders would be immediately addressed - supply and demand.
The British consumers would be content in the knowledge that the Cadbury chocolate they eat will be of the same high standards they expect.
Note: Polish ingredients, being different from British ingredients, were proving a problem in Poland. So, Polish milk, sugar and water have been transported over to be tested at Somerdale. The Polish milk was found to be ‘bitter', the Polish sugar clogged up the machinery and the Polish water did not come up to British standards.
Kraft Foods' code of conduct
The Kraft advertisement for the beverage Kool-Aid is followed by an' inspirational' message by you saying, "beautifully captures the essence of trust that has been our way of doing business for more than 100 years." Trust, the code informs us, is Kraft's most essential value: "Trust means that others can rely on us to speak truthfully, to honour our commitments, and to treat people fairly."
Kraft allays fears for jobs
"Don't fear for your jobs." Thousands of Cadbury workers were told. "The concerns about jobs and job losses, particularly in the manufacturing community, are greatly overstated."
A warm welcome to Cadbury employees by Irene Rosenfeld - after takeover.
"I warmly welcome Cadbury employees into the Kraft Foods family and look forward to meeting many of them in the days and weeks ahead."
Kraft's Respect and ‘Communication, communication, communication.'
Six days after the Kraft takeover of Cadburys, Kraft sent two of the ‘old' Senior Cadbury managers into Somerdale. Sneaking in through the back door they came bearing news........ They told the managers on site the factory was closing and that they were to tell the employees on site by 4.30pm before word got out. Other Somerdale employees heard over the radio or watched on T.V in shock.
Nick Bunker, as I have said, some 40 miles away ,could not be bothered to personally tell the Somerdale employees the ‘news', he could have driven down to Somerdale, delivered his ‘news' and been back to the Kraft H/O within two hours.
There was no communication and these employees got no respect.
Summing up,
Kraft's ‘team' would have had access to a wide variety of ‘industrial intelligence' and would have ‘investigated' all areas during the takeover so there would be no need what so ever for Kraft to lie.
It is not possible that Kraft/you did not know about the time line for the closure of the Cadburys Somerdale factory as it had been sent to them/you, along with other important information on the ‘relocation'.
The Union asked Kraft to stop making pledges if they had no intention of committing to them. Kraft refused to speak to the Union, employees or the local M.P. I myself informed Nick Bunker of the website which is full of information that Kraft could easily have ‘looked into'. I also offered help, being an independent, if I could give any. In fact, Nick Bunker said on closing an email to me a few days before the takeover took place, "Don't forget to keep in touch."
The website is www.savecadburys.co.uk
Lack of thought for Somerdale closure
Production at Somerdale is being cranked up. Some new orders that need to be dealt with immediately have just come in. Instead of slowing down, Somerdale is being asked to speed up again, it is called, ‘supply and demand'. Time is of the essence and the Somerdale employees understand the importance of stepping up to the mark. To not produce to the highest level is not in their vocabulary. As 98% of all chocolate produced at Somerdale is consumed solely by the British public, thank goodness that production is at source in England so demand can be met immediately and profits are not jeopardized.
Long term investment.
At a briefing at Bournville Senior management made it totally clear that they were determined to make one last ditch attempt to save face by telling Kraft it was a wise decision to continue with the closure of Somerdale, England.
Unfortunately the Cadbury Board has continually made ‘questionable' decisions for years (refer to website).
If it is Kraft's intention to build on the British Cadbury name and expect the highest returns with long term investment, then it may be advisable to take check now, before it really is too late.
I await your personal reply to this letter.
Yours sincerely,
