Cadbury tries to avoid being left holding the baby after multi-million pound recall

Cadbury Trebor Bassett said it would relaunch its Milky Babies sweets by early next year, following a recall just weeks after the product was launched.

It said that liability for the multi-million pound recall of the dairy version of Jelly Babies was "still being worked out", but it was seeking to recover the full cost. "We're talking to insurers and looking over contracts very carefully, but I can't tell you at this stage who is liable," it said, adding that the sweets were produced by a "reputable manufacturer"

Milky Babies were recalled because resin used in stamping the sweet moulds had been deposited in the product. "It was a processing equipment failure," said Cadbury.

Meanwhile, Cadbury is planning to rebuild its Pontefract Butterkist popcorn factory, which was destroyed by fire in June.

"We have been working with a third party for popcorn since the fire, but we came to the decision that we wanted to keep Butterkist in-house and you need specialist facilities that we don't have at our other sites," said Cadbury. The completely rebuilt site would be up and running in about a year, added the company.