LONDON/Z-RICH (Reuters) – Swiss giant Nestlé is seeking a battle of Cadbury bidders for a chance to reclaim a lucrative U.S. license for its KitKat chocolate bar or to recover rubber and candy in a break-up deal. After its success in the United Kingdom, Kit Kat was exported to Canada, South Africa, Ireland, Australia and New Zealand in the 1940s. In 1958, Donald Gilles, the manager of JWT Orland, founded the iconic advertising line « Have a Break, Have a Kit Kat ». The brand developed in the 1970s, when Rowntree created a new distribution plant in Germany to meet European demand and entered into agreements on the distribution of the brand in the United States through Hershey and in Japan by Fujiya. In 1988, Rowntree was acquired by Nestlé. When a company buys another business, it must comply with existing agreements, including the agreement between Rowntree and Hershey. This is particularly important here because this agreement did not have a deadline. Kit Kat Bars are produced in 16 countries by Nestlé: Brazil, Mexico, United Kingdom, Canada, Australia, New Zealand, South Africa, Germany, Russia, Japan, China, Malaysia, Thailand, India, Turkey, United Arab Emirates, Bulgaria and Algeria. Kit Kat Bars in the United States are manufactured under license by The Hershey Company, a competitor of Nestlé, under a prior licensing agreement with Rowntree. 2003 was a turning point for the Kit Kat Bar and the confectionery industry in general.
The popularity of low-carb diets and the move towards healthier eating have stifled sales growth in many parts of the world. In addition, fierce competition from the newly created Dairy Milk Superbrand has also contributed to a significant reduction in Kit Kat`s sales in its uk market and threatened to remove them from their No. 1 position.   The solution chosen by Nestlé and others was to drastically increase the number of new and unique variants of their confectionery and to market them in the form of limited or special editions, which are usually only available for a few months at the same time, so as not to lose the flow of their standard products.  The strategy initially reversed the decline of Kit Kat and was taken over worldwide by Nestlé, Hershey, Mars and others with similar success.   A sale of Hershey would mean that the trademark rights in the United States would be returned to Nestlé under a licensing agreement between the two, but this was never likely, since Hershey was controlled by Hershey Trust. The former engineer says Tesla chased her away, then beat her up. Their action against the company tests the limits of arbitration agreements that bind millions of American workers. Hershey Company holds a license to manufacture Kit Kat Bars in the United States, dating back to 1970, when Hershey entered into a licensing agreement with Rowntree that allowed Hershey to retain the Kit Kat license until Hershey was sold.
Nestlé, which has a strong presence in the United States, had to comply with the licensing agreement when it purchased Rowntree in 1988. As Kit Kat is one of Hershey`s top five brands in the U.S. market, the Kit Kat license was a key factor in Hershey`s failed attempt to win a serious buyer in 2002.  Even Nestlé refused Hershey`s award.  But Rowntree`s agreement with Hersheys was « eternal. » When Nestlé acquired it in 1988, it complied with the original agreement, but with one condition: Nestlé would reclaim KitKat`s rights if Hershey ever tried to sell itself to another company.