Kraft seeks to raise profile of Cadbury products in China

The world's second-largest food company has been expanding rapidly in developing markets over the last three years amidst slowing growth at home. Irene Rosenfeld, the company's chief executive, said the US$19 billion purchase of Cadbury PLC was "just the next step in that evolution."

Cadbury has had a strong position in India, but its presence in China - Kraft's fastest growing market - has been very small. Rosenfeld said she hopes to build on the success of Kraft's Oreo cookies in China with Cadbury's line of products, which include Dairy Milk, Trident, Dentyne chewing gum and Halls cough drops.

Rosenfeld added that she expects the Cadbury franchise in China to be a "very important and significant growth engine for us in the next couple of years."

Kraft has already taken Cadbury's Halls cough drops to outlets in China that carry Kraft products, and the company expects similar opportunities to raise awareness of other Cadbury brands.

In addition, she said the company is in the process of consolidating the China headquarters of Cadbury and Kraft in Kraft's Shanghai offices. Cadbury had been operating out of Beijing.

Earlier this year, Carat won the media planning and buying duties for Cadbury in China, in effect consolidating the account with the Kraft media business, which it already holds.

Carat beat out Cadbury incumbent Starcom for the consolidated account, thought to be worth upwards of US$40 million, of which Cadbury accounts for roughly half, according to data from Nielsen.

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