The deal, which was first revealed by Brand Republic's sister title Marketing in February, will see five executive directors of Green & Black's stay on to run the business, which will operate as a standalone entity within Cadbury Schweppes.
The acquisition follows a 5% equity stake taken in the organic chocolate company by Cadbury in 2002 and will give it a firm foothold in the growing luxury chocolate category, while allowing Green & Black's to extend its international growth.
Cadbury has all but dropped out of the luxury chocolate category, in which UK volume sales have grown by 21% since 1999, as its Roses and Milk Tray brands have suffered from price and perception erosion.
Green & Black's, conversely, reported sales growth up 63% to 拢13.5m for 2003-2004 in a confectionery market that only grew by 2.1%.
However, the acquisition is likely to raise concerns with consumers who are fans of Green & Black's, not only because of its organic credentials, but also because of its stance on ethical trading. Many of its products carry the Fair Trade mark.
Craig Sams, president of Green & Black's and chairman of The Soil Association said: "Our businesses share a commitment to ethical values and I am confident that, with the involvement of Cadbury Schweppes, we will now be able to bring these positive messages to a much wider international audience."
Cadbury has sought to allay concerns on this front and said it would uphold Green & Black's ethical credentials.
Todd Stitzer, CEO of Cadbury Schweppes said: "We are incredibly impressed with the success the Green & Black's team has achieved and welcome them into the Cadbury Schweppes family. Our businesses share a passion for quality products and ethical values so this is a very natural fit."
Green & Black's first appeared in 1991 with the Maya Gold chocolate bar. It was bought in 1999 by a group of investors, including William Kendall, a former chief executive of the New Covent Garden Soup Company. Kendall is now chief executive, a role he will continue in after the acquisition.
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