Seriously folks, get it right

Cadbury loses more than £6m in Creme Egg sales after changing recipe
Company suffers multi-million pound losses after sparking storm of protest across Britain by replacing Dairy Milk in recipe with cheaper chocolate

Well, which is it? Are they making losses or have they just lost sales?

Sales are, umm, around £120 million. Sales are down £6 million.

So, after we work it all out, what the profit would have been on that marginal $6 million in sales, then compare to the lower cost of chocolate on all sales, are they increasing their profits or reducing them? Or, perhaps, even making a loss?

8 thoughts on “Seriously folks, get it right”

  1. The Laughing Cavalier

    American chocolate is of very poor quality. If Kraft is imposing such standards on Cadbury it is little wonder that sales are falling.

  2. The gross profit will be higher than that. For heavily advertised consumer goods it always is. Because that national advertising campaign is regarded as a fixed cost……

  3. Dairy milk is hardly the ne plus ultra of the chocolate world either whilst we are on the topic.

    Mrs PG once did a talk and chocolate tasting where she got the audience to taste chocolates with successively higher cocoa mass content. Once they had got to appreciate some of the best 70% (90% and higher actually being quite bitter), they then went back to dairy milk. the prevailing view was that it tastes of cardboard. 🙂

    don’t get me started on the Americans…

  4. While I wholeheartedly agree that the chocolate from Hersey and Reese are clearly sub par compared to other providers saying that all American chocolate is crap just isn’t true. There are many small chocolateers who make good products. Sadly advertising does work and people buy the crap just like with beer.

    If you ever find yourself in western PA stopping by the Betsy Ann shop is worth the time. Just be sure to sample first as they have to sell a lot of cheaper chocolate to make money as that is what the american palate is used to.

Leave a Reply

Your email address will not be published. Required fields are marked *