Cadburys diversification goes back to its roots

Here is a story of a major business which is diversifying, by turning full circle back to where they started from.

John Cadbury started his business in 1824 in a shop selling tea, coffee and chocolate based drinks, which he manufactured himself. In those days chocolate was only afforded by the wealthy, as it was subject to a very high import tax, but when this was reduced in the 1850’s it became a mass market product, and the business prospered. You can read some more detail of the history here, about the strong heritage the company build up through the development of the Bourneville factory and village with housing, education , training, medical facilities and pension schemes for employees. The heritage also relied on the product though, with pioneering experiments working with cocoa and chocolate which John and his descendants carried out, for example producing their first filled egg product in 1923.

Now Cadbury is going back to its roots with a plan to open a national chain of branded cafes. The cafes - reportedly to be branded Cadbury Cocoa House - are expected to offer afternoon tea, along with a range of Cadbury-themed goods. They will build on that all-important brand image and heritage – David Morris who leads the team developing the idea says “… we will really develop that heritage of the brand - from fireplaces and fireside chairs to traditional English afternoon teas.”

Much as John Cadbury brought chocolate drinks to the masses in the 1850’s, they also plan to make afternoon tea a more affordable luxury than the version currently offered by luxury hotels, with a price of £14.50. They say that the plans started before the takeover by Kraft and are already well advanced, with negotiations taking place about locations so that they hope to open their first cafes in London before the end of the year.

But one part of the idea is something that Quaker John Cadbury would not have approved of. They plan sell alcohol alongside the tea, coffee and chocolate, in order to differentiate themselves from Pret a Manger and Starbucks – whereas in 1824, John Cadbury opened his shop in order to give an alternative to the alcoholic drinks that most people drank at the time.