Cadbury launch welcomed as post-Brexit investment in UK food and drink
10 Apr 2017
Cadbury owner Mondelēz International has sealed its commitment to the UK food and drink industry with the launch of new production lines at Bournville, at a cost of £75 million.
Glenn Caton, company president for Northern Europe, said investment meant the Birmingham site could now compete effectively against manufacturing facilities elsewhere in Europe.
He explained that previously it costs three times as much to produce a chocolate bar in Bournville than it did in Germany, leaving Mondel?z with an unsustainable production model.
When the firm’s predecessor Kraft acquired Cadbury in 2010, it closed the Bristol Somerdale factory as well as opening a new site in Poland in order to reduce costs.
This £200 million investment into world-class production lines ... is a real vote of confidence in the UK
Andrea Leadsom, Environment, Food and Rural Affairs secretary
Bournville also proved unable to meet the levels of output required for production of its flagship Dairy Milk brand.
However in 2014, the owner began work on creating four new production lines, spending a total of £200 million on its UK manufacturing and research and development facilities – with more than a third of the amount focused on Bournville alone.
Today the Dairy Milk tablet lines produce up to eight tonnes an hour and 1.2 million 110g bars per day.
Mondelez’s commitment has been welcomed in government circles. Brexit is expected to have a substantial effect on the UK food and drink sector, with fears that the loss of non-UK labour and possible market share will drive prices up – prompting many foreign companies to opt for mainland Europe rather than bases in Britain.
Environment, Food and Rural Affairs secretary Andrea Leadsom said: “This £200 million investment into world-class production lines in the UK, including at the Bournville site, is a real vote of confidence in the UK as a great, global, trading nation and the ideal place to do business.