Analysis of Cadbury's
Background to business
The Cadbury’s company started manufacturing chocolate in Birmingham in
1824. It was set up by Mr. John Cadbury. In the year 1847 the company
changed when John and his brother Benjamin became partners and the
company became known as the Cadbury Brothers of Birmingham. A year
later the retail side of the business, which was allocated in Bull
Street was passed to nephew, Richard Cadbury Barrow. In February 1854
the company received their first Royal warrant as ‘manufacturers of
cocoa and chocolate to Queen Victoria. The company still holds the
royal warrants of appointment.
In 1861 both Richard and George Cadbury took over the business when
their father retired. The Cadbury brothers were dissatisfied with the
quality of cocoa products that were being produced by manufacturers
including their own, for this reason the brothers wished to improve
the quality of Cadbury cocoa products as to help the business to
survive and prosper. The brother visited to the Van Houten Factory in
Holland, after the visited the Cadbury brothers, started using a new
processing technique. The Cadbury brothers introduced this new process
for pressing cocoa butter from cocoa beans, the process made a more
palatable cocoa essence.
The company remained in Birmingham for 32 years and by then the
factory had become too small for the worker force. The brothers
decided that they had to move the factory to larger premises. The
source of the quote below is cadburys.co.uk site.
"Why should an industrial area be squalid and depressing?" Both
"Why should not the industrial worker enjoy country air and
occupations without being separated from his work?"
"If the country is a good place to live in, why not to work in?"
In 1878 the company was move to Bournville. After the death of Richard
Cadbury in 1899, the Cadbury business became a private limited
company: Cadbury Brothers Limited. George Cadbury became the Chairman
of the Company’s new Board. The other directors were Barrow and
William A. Cadbury (sons of Richard) and George’s own two sons, Edward
and George Cadbury Junior.
The Bournville factory site became a 'series of factories within a
factory', as everything needed for the business was produced on site,
with tin box pressing plants, carton making units, a design studio and
In 1919, J.S. Fry & Sons Ltd merged their financial interests with
Cadbury Brothers Ltd of Bournville Birmingham forming the British
Cocoa and Chocolate Company. In 1935 Fry's became a wholly owned
subsidiary of Cadbury. The Somerdale committee was set up, although
the factory maintained its identity as J.S. Fry & Sons Limited, a
subsidiary of Cadbury Group Limited, until the 1967 re-organisation of
the business. In 1969 Cadbury Schweppes Limited came into being,
following the merger of the Cadbury Group Ltd and Schweppes Ltd, the
soft drinks company dating from 1792.