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Worm queers Cadbury's pitch

Arijit De & Reeba Zachariah in Mumbai | October 10, 2003 08:32 IST

The finding of worms in a sample of chocolates manufactured by Cadbury India earlier this week may have put paid to it becoming a major sourcing hub for British chocolates and beverages giant Cadbury Schweppes'.

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As part of a global realignment of its supply chain management, finishing touches were being given to a plan that would have seen Cadbury India emerge as a major supplier of chocolates to the Asia-Pacific region and the Middle East.

In an exclusive interview with Business Standard, Bharat Puri, managing director of Cadbury India, said: "This controversy, and the adverse publicity it has received in several countries, has set our plans back by several months. The outsourcing model would have resulted in significant revenue generation for Cadbury India."

Even the parent company, seen globally as a flagbearer of corporate governance, has expressed concern about the problem.

Puri is hopeful though that Cadbury India will begin supplying chocolates to other countries sooner than later. "But we surely can't do it now. Can you imagine the adverse impact it will create after this controversy?" Puri says ruefully.

Cadbury's Indian operations are not just the largest in Asia but also the cheapest. In India, Cadbury has the largest market share anywhere in the world and has been the fastest growing FMCG company in the last three years with a compound annual growth rate of 12.5 per cent.

Even in for its domestic operations, the "worms controversy" could not have come at a worse time. "The next few months are the peak season for us. We are carrying out market research to gauge the impact this controversy has had on our customers," Puri said.

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Number of User Comments: 12

Sub: Not Surprised

Couple of years back I found worms in a Cadbury milk chocloate I bought for my dauughter. When I wrote to the MD of Cadbury's ...

Posted by K.B.Srinivasan

Sub: Cadbury

Yeah it is bad for the company image, but it is high time that stringent quality checking be enforced in the country. Not just for ...

Posted by Kapil

Sub: Worms-Pesticides

Now people can have Cadbury's worms and Pepsi pesticides ....... Great combination. Wow!

Posted by Satish

Sub: Sorry Mr. Puri, but de-worm your plants!

Mr. Puri's accusatory tone on how Cadbury has lost outsourcing business because of the "worms controversy" is ridiculous. First Cadbury needs to come clean off ...

Posted by Bragadeesh Srinivasan

Sub: worms in dairy milk

dear sir, i bought a dairy milk chocolate a few months back and was surprised to find some worms inside it even though the expiry ...

Posted by sona


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