Cadbury’s chocolate brands such as Dairy Milk are to go up by 4% to 5% in price over the year due to the global cocoa crisis.
Finance director David Kappler told the Daily Telegraph that Cadbury would pass on the increasing cost of raw materials, including European milk and sugar as well as cocoa, in modest price rises. And that he cost of a Dairy Milk bar would go up by 1p or 2p from the present price of around 35p.
Cadbury posted pre-tax profit up of £830m to December 29 on sales of £5.3bn. But the company warned that 2003 earnings would be down 2% by the integration of the US confectionery group Adams, which Cadbury is buying from Pfizer for $4.2bn.
Management reorganisation and restructuring charges at Cadbury will go up from £53m to £140m. This includes reducing regional units from 10 to five. CEO John Sunderland said: "2003 will be a year of transition as we consolidate these various developments."