Sweet maker Cadbury has announced that it will cut its £70 million IT support spend in a bid to strengthen its positioning in the face of a proposed takeover by US food giant Kraft.

The company told investment analysts that it plans to move away from its present model of sourcing IT services locally and instead rely on its global connections for technology support, a development which could cause concern among current suppliers. Chief financial officer Andrew Bonfield said that Cadbury’s present strategy “does not deliver the full benefits of effective procurement”.

In 2006, Cadbury’s profits suffered a £12 million dent when problems with the implementation of its Probe enterprise resource planning platform – based on SAP software – resulted in the confectioner producing too many chocolate bars around its traditionally lean New Year period.

The company has been resolute in its view that Kraft’s £10 billion bid offers no benefit to Cadbury. "Kraft’s offer remains derisory," the company said this week.