The European UnionAssignment 2

“The European Union is a unique economic and political partnership between 27 European countries.It has delivered half a century of peace, stability, and prosperity, helped raise living standards, launched a single European currency, and is progressively building a single Europe-wide market in which people, goods, services, and capital move among Member States as freely as within one country.”

EUROPA (2011) Basic information on the European union [online] Available from:http://europa.eu/about-eu/basic-information/index_en.htm (16/01/2011)

The European Union Commission’s Main roles

The Commission's main roles are to:• set objectives and priorities for action• propose legislation to Parliament and Council

• manage and implement EU policies and the budget

• enforce European Law (jointly with the Court of Justice)

• represent the EU outside Europe (negotiating trade agreements between the EU and other countries, etc.).

Legislations which affect Cadbury’s

“Pre-packaged foodstuffs must comply with the rules on labelling, presentation and advertising of foodstuffs. These rules are harmonised at European Union (EU) level to enable European consumers to make informed choices and to remove obstacles to the free circulation of foodstuffs and unequal conditions of competition.”

Directive 2000/13/EC 

Europa (2011) – labelling, presentation and advertising of foodstuffs [Online] available from: http://europa.eu/legislation_summaries/consumers/product_labelling_and_packaging/l21090_en.htm (16/01/2012)

“Pre-packaged foodstuffs must comply with the rules on labelling, presentation and advertising of foodstuffs. These rules are harmonised at European Union (EU) level to enable European consumers to make informed choices and to remove obstacles to the free circulation of foodstuffs and unequal conditions of competition.”

Directive 2000/13/EC 

Europa (2011) – labelling, presentation and advertising of foodstuffs [Online] available from: http://europa.eu/legislation_summaries/consumers/product_labelling_and_packaging/l21090_en.htm (16/01/2012)

How Does this affect

Quantity of ingredients or categories of ingredients expressed

This requirement applies when an ingredient or a category of ingredients: appears in the name under which the foodstuff is sold or is usually associated with that name by the consumer,is emphasised on the labelling in words, pictures or graphics, oris essential to characterise an indicated foodstuff (but certain exceptions may be providedEUROPA(2011) Labelling, presentation and advertising of foodstuffs [online] Available http://europa.eu/legislation_summaries/consumers/product_labelling_and_packaging/l21090_en.htm (16/01/2011)

Quantity of ingredients or categories of ingredients expressed

This requirement applies when an ingredient or a category of ingredients: appears in the name under which the foodstuff is sold or is usually associated with that name by the consumer,is emphasised on the labelling in words, pictures or graphics, oris essential to characterise an indicated foodstuff (but certain exceptions may be provided if so a weight in metric must be provided.

EUROPA(2011) Labelling, presentation and advertising of foodstuffs [online] Available http://europa.eu/legislation_summaries/consumers/product_labelling_and_packaging/l21090_en.htm (16/01/2011)

This has forced the slogan being dropped

The European regulations now require weights and amounts shown on the packs to use metric measurements.

After almost a century of being used the slogan on dairy milk wrappers has been It has now been replaced by the not-so-catchy words: 'The equivalent of 426ml of fresh liquid milk in every 227g of milk chocolate.'Daily mail (2011) Cadburys drop iconic glass and a half slogan from chocolate [online] Available from:http://www.dailymail.co.uk/news/article-1315787/Cadburys-drop-iconic-glass-half-slogan-chocolate-bars.html (16/01/2012)

Industrial competitiveness Competition policy

“Antitrust rules prohibiting agreements that restrict competition and abuses of dominant positions as well as merger rules are at the heart of EU Competition policy. Control of state aids to enterprises constitutes the third pillar of this policy which is very specific for the EU”

Europa(2011) Industrial competitiveness, competition policy [online] Available from: http://ec.europa.eu/enterprise/policies/industrial-competitiveness/competition-policy/index_en.htm (16/01/2011)

Industrial competitiveness Competition policy

“Antitrust rules prohibiting agreements that restrict competition and abuses of dominant positions as well as merger rules are at the heart of EU Competition policy. Control of state aids to enterprises constitutes the third pillar of this policy which is very specific for the EU”

Europa(2011) Industrial competitiveness, competition policy [online] Available from: http://ec.europa.eu/enterprise/policies/industrial-competitiveness/competition-policy/index_en.htm (16/01/2011)

Competition Policy Mergers

07/09/2009 – 05/02/2010

Mergers commission clears proposed acquisition of Cadburys by Kraft foods

Subjected to conditions

“The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Cadbury PLC of the UK by Kraft Foods Inc. of the US by way of public offer. The decision is conditional upon the divestment of the Polish and Romanian chocolate confectionary businesses of Cadbury. In view of the remedies proposed, the Commission has concluded that the operation would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.”EUROPA (2011) Mergers: Commission clears proposed acquisition of Cadbury by Kraft Foods, subject to conditions [online] Available from: http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/3 (16/01/2011)

• Kraft and Cadbury are strong players in the chocolate confectionary business. With its main chocolate brands. Kraft has a very strong presence in most Member States, with the exception of the UK and Ireland where customers' preferences remain strong for traditional British chocolate. Cadbury is the market leader in the UK and Ireland, in particular with its brand Dairy Milk, while in continental Europe it is mainly active in France, Poland, Romania and Portugal, through local brands which it previously acquired.

• The Commission identified competition concerns within chocolate confectionery in Poland and Romania, where the combined market share of Kraft/Cadbury is particularly high and their brands are competing closely, in particular in the chocolate tablets markets.

• To remedy these concerns, Kraft committed to divest Cadbury's Polish confectionery business marketed under the Wedel brand and Cadbury's domestic chocolate confectionery business in Romania.

Europa (2011) – labelling, presentation and advertising of foodstuffs [Online] available from: http://europa.eu/legislation_summaries/consumers/product_labelling_and_packaging/l21090_en.htm (16/01/2012) Europa(2011) Industrial competitiveness, competition policy [online] Available from: http://ec.europa.eu/enterprise/policies/industrial-competitiveness/competition-policy/index_en.htm (16/01/2011) EUROPA (2011) Mergers: Commission clears proposed acquisition of Cadbury by Kraft Foods, subject to conditions [online] Available from: http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/3 (16/01/2011)

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