Birmingham Council sweetens the deal for Cadbury

Posted on 15 Jan 2013

Birmingham City Council and Mondelēz International, owner of the Cadbury brand, have agreed a partnership that reduces bureaucracy and costs for its food business throughout the UK.

Birmingham City Council and Mondelēz International, owner of the Cadbury brand, have agreed a partnership that reduces unnecessary burdens on Kraft’s business throughout the UK.

Known as a Primary Authority partnership, the deal aims to cut costs and duplication for Mondelēz International and city councils by identifying waste. The US confectionery giant has cut £250,000 in packaging costs as a result of advice from Birmingham council.

Birmingham City Council says it will now become the sole provider of assured advice to Mondelēz on food safety and hygiene regulations.

Launched by the Department for Business, Innovation and skills, primary authority partnerships are part of the Government’s ambition to cut red tape for business, by ensuring consistency of regulation and reducing duplication of inspections and paperwork.

Business organisations such as the British Chambers of Commerce, big retailers and trade associations have supported the concept.

Business Minister Michael Fallon said: “Birmingham has got the bit between its teeth in tackling red tape, and this deal will cut costs for Mondelēz International and all the local authorities it deals with, showing that this city is a great place to do business.

“Combined with the work by the Greater Birmingham and Solihull LEP, the region is setting the pace in making regulation work better for business and, ultimately, the prosperity of the local community.”

Birmingham City Council’s Leader, Sir Albert Bore, said: “Birmingham City Council believes in doing whatever it can to support its business community.

“We have a very good relationship with Mondelēz International, and by working closely with the business we can apply regulations in a way that relates to their specific circumstances.”

David Oliver Director of Corporate Affairs for Mondelēz International UK&I said: “Having consistency of regulation across the country saves us considerable duplicated effort.”

Business organisations are broadly supportive of the  Primary Authority concept. “Essentially, they allow a business to agree its approach to compliance with one local authority and (in theory) be assured that the advice given to the business will be respected by other local authorities,” said Roger Salomone of manufacturers’ group EEF.  “They strengthen relationships between businesses and local regulators, by allowing the authority to build up an understanding of a business and its specific circumstances.”

“Most importantly they facilitate more the provision of more consistent advice, inspection and treatment of companies,” he added.