This week we will know whether the shareholders have accepted the offer by Kraft for Cadbury’s.  Rarely are passions raised to the extent we have seen in recent days by a corporate acquisition.   And it’s fair to say, Kraft has not got off to a good start.
 

Take the announcement; it leached out on the very day that the Business Secretary, the publicity-friendly Lord Mandelson, was appearing before a Commons’ select committee maximising both the political commentary and stoking a fervent public debate at the highest levels of government. 
 

Kraft has also appeared to have poorly paved the way for the announcement.  Its offer after grudging offer sent out completely the wrong signals of its regard for the revered Cadbury’s business and brand.   And if it did have an active stakeholder engagement programme accompanying its acquisition strategy, it doesn’t appear to have been very successful.   It just doesn’t look good when one of your biggest stakeholders – Warren Buffet no less – casts scorn over the deal.  
 

As a corporate it’s little understood; it is seen as a big American behemoth that has a track record of buying British confectioners and then closing its manufacturing bases.  It’s associated with being part of the Philip Morris tobacco empire until very recently.  How far away from the Cadbury’s ethos can you get?!
 

And that is at the crux of the public debate at the moment.  There’s a huge sense of affection and loyalty for the Cadbury’s brand and there is deep suspicion of Kraft.  This is an emotional debate which Kraft needs to win.  The commercial dimension of the deal is clearly agreed but for this acquisition to succeed, Kraft has to engage to win over hearts and minds.  How do they do that?
 

First, they need to embrace Cadbury’s brand and promote it.  The attributes of the Cadbury’s brand are powerful, borne out of its Quaker heritage, a legacy of strong societal contribution and positive sentiments attached to eating some great chocolate.  Kraft has a bad habit of buying British confectioners and diluting the brand – take Terry’s of York which subsequently became Terry’s and its UK production closed.  It would be madness if Kraft is as clumsy with the Cadbury’s brand.
 

Second, integrate the two cultures.  Cadbury’s has a very strong culture and it would be wise for Kraft to look carefully at how they can weave that culture in to strengthen the wider organisation.  Commercially, Kraft may be taking over Cadbury’s but it’d be smart if this effectively becomes the cultural takeover of Kraft by Cadbury’s.
 

Third, engage, engage, engage.  Kraft should tap into the highly sophisticated Cadbury’s stakeholder engagement team to get its messages about the acquisition heard.  That communication needs to be frequent, open and, above all, honest about its intention for the medium to long term.
 

It is with a sense of sadness that I watch Cadbury’s being taken over.  My hope is that Kraft is not as arrogant or clumsy with that most cherished brand as it has been with many other great names that it has acquired. But I tend to agree with Martin Wolf. the FT's eminent commentator; he thinks the takeover will be a flop with the only beneficiaries being the shareholders in the very short term.