Kraft Foods is transferring part of the Cadbury business from UK to Switzerland in a move which could see it paying less corporation tax. The transfer of certain roles within Cadbury to Zurich would enable the company to save on UK tax bills, though Kraft confirmed that the move would not significantly affect Birmingham-based Cadbury's UK staff.

The rate of corporation tax in Zurich starts at 15 per cent, which compares favourably with the 28 per cent levied on companies in the UK. In June 1999, US firm Pepsico also transferred ownership of its Walkers brands out of England and into a Swiss subsidiary, Frito-Lay Trading GMBH.

A statement from Kraft said: "Since 2006 we have been implementing our European model involving a (holding) company based in Zurich together with local companies in country markets. "The reorganisation has given us greater focus on our priority brands and has helped us grow faster. We are integrating Cadbury into this model. This involves the transfer of certain roles to Switzerland, though the majority of UK-based roles will remain in the UK."

Kraft is expected to finalise the reorganisation next year. The restructuring move could serve to worsen the reputation of Kraft in the UK, which purchased Cadbury in February this year amid controversy. Soon after the takeover, Kraft reversed a pledge to keep open a Cadbury plant in Somerdale, England, when it decided to move the factory to Poland. In August, Kraft CEO Irene Rosenfeld reported that the integration of Cadbury into Kraft’s business was progressing well and that about one third of Kraft's top 50 executives were from the UK confectionery company. Kraft noted then that the acquisition of the Cadbury helped the firm to a better-than-expected first quarter net profit of $937m (£590m), up from $827m in the same period a year earlier. And, reflecting the Cadbury acquisition, net revenue rose 25.3 per cent to $12.3bn. Rosenfeld predicted then that the takeover would lead to even greater synergies: “In light of our strong earnings momentum, we will reinvest our 2010 upside to build our brands and to harmonize business practices."  Kraft added in its financial statement that in the company’s developing markets, net revenues increased 73.4 per cent aided by a 61.4 per cent impact from the Cadbury acquisition.