Cadbury factory to close

Cadbury Eclairs

Cadbury's new owner Kraft has announced plans to close the chocolate giant's Somerdale factory in Keynsham near Bristol - with the loss of 400 jobs.

The US conglomerate began its campaign to take over Cadbury by pledging to keep the factory open. Days after completing on the deal, Kraft has done a u-turn - but blames Cadbury for the decision.

Cadbury had already planned to close Somerdale and transfer 400 jobs to Poland and Kraft says the investment required to reverse the closure would be too great.

The pledge to keep Somerdale open was used by Kraft last September to get local politicians and unions onside for what was always a controversial takeover.

But last night union leaders were outraged by the Kraft announcement and accused the company of being manipulative.

It emerged yesterday that Cadbury chief executive Todd Stitzer made a £4.6m profit through exercising share options.