British MPs criticise Kraft’s Rosenfeld's refusal to testify

24 May 2011

Kraft CEO Irene RosenfeldIrene Rosenfeld, chief executive of Kraft Foods was yesterday criticised by British MP's for repeatedly refusing to testify before a parliamentary committee set up to go into the $19.6-billion acquisition of Cadbury last year by the American food giant.

Rosenfeld refused to appear before the UK Business, Innovation and Skills Committee on three separate hearings to testify on the commitments made by her company during its 2009 hostile takeover of the UK confectioner.

The committee yesterday tabled its report titled Is Kraft working for Cadbury where it was revealed that Rosenfeld had turned down repeated requests to be questioned. She even declined the committee's offer to give her evidence via video conferencing.

MPs said that Kraft came close to committing Contempt of the House, while the committee concluded that Rosenfeld's "repeated refusal to appear before a committee of Parliament demonstrates a regrettably dismissive attitude to a national parliament – an attitude which we trust Kraft will rapidly take action to shed."

At the height of the four-month hostile takeover of Cadbury, which was opposed by the Cadbury union and British public, Rosenfield had said that in the event of Cadbury merging with Kraft, she would save the Somerdale factory from closure and save around 400 jobs.

After securing Cadbury in February 2010, it took just a week for Rosenfield to renege on her pledge on the plea that she was not aware how far Cadbury had advanced in its plans to shut the factory and move its operations to Poland. (See: Kraft keeps promise: shuts Cadbury's Somerdale factory)