Kraft Foods' buyout of UK chocolate maker Cadbury could have a lasting effect on the cocoa supply chain, experts have claimed.
The US-based firm sealed the takeover last week, meaning the company will overtake Mars-Wrigley as the biggest player in the confectionery industry.
Kraft intends to introduce a number of measures to help boost cost reduction and improve efficiency at the firm, which could have a major impact for suppliers.
Chris Brockman, market research manager at UK consultants Leatherhead Food Research, told Reuters: "The rationale for the merger is cost savings. The result is there is going to be consolidation in the supply sectors."
The news agency claimed that the campaign to drive down costs could result in more central buying, resulting in lower margins for cocoa suppliers.
According to a report by Transport Intelligence earlier this week, Kraft's takeover of Cadbury could bring a number of logistics benefits for the company.
The publication said the ability to sell a wider range of products in different world markets and emerging economies would be a major advantage of the merger.
