Wholesalers and retailers fear Cadbury sales could be hit hard over Christmas because of supply chain problems.

Service levels have declined since Cadbury Trebor Bassett installed new IT in July and the company is now working to get the supply chain running smoothly for the peak trading period.

One confectionery buyer at a wholesaler said: “Since they installed new systems there have been all sorts of problems. There are some highly disgruntled C&C and wholesale operators. The new systems have been in for three months and we have had a nightmare in terms of supply across all products.”

And a retail buyer added: “I fear these problems will carry over to Christmas.”

Mike Tipping, head of customer relations at Cadbury Trebor Bassett, said: “We know that service is not at levels that our customers expect, but with the actions we have in place we are confident we will resolve this.”