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Kraft and Cadbury complete integration

Photo of Toblerone cablecar changiKraft Foods World Travel Retail (KFWTR) and Cadbury International Travel Retail (ITR) are now legally part of a single organisation following the completion of the integration between the two companies’ duty-free and travel-retail businesses, along with 13 domestic markets, in June. The final stage of integration—the combination of the logistics and supply chain functions—is underway and is scheduled for completion in the first half of 2012.

According to Kraft, the two teams have been working together to “continue to excite travellers”, implementing new merchandising solutions such as the Toblerone Cable Car unit (pictured) at Singapore Changi airport in partnership with LS Travel Retail Asia Pacific. High-impact promotions have also effectively raised the brands’ profiles at airport locations worldwide.

KFWTR has also introduced the first global travel-exclusive gum offer with Trident and Stimorol, which the company claims form “a strong offer with which to exploit this underdeveloped category and to work closely with its retail partners to maximise the opportunity”. Gum is already delivering “significant results” and increasing its overall share of the business, the supplier added.

“The acquisition of Cadbury has strengthened our position in the confectionery category and this in turn will only increase our ability to work with trade partners to boost the category as a whole,” said KFWTR managing director Andreas Fehr.

“Currently, confectionery represents approximately 10% of travel-retail sales, but with the category’s impulse-driven nature and universal appeal, there is a huge opportunity to drive further sales in the channel,” he concluded.