Cadbury to demerge Americas Beverages

Source: Stock Market Digital

Date :10/10/2007 03:41:28

Cadbury Schweppes Plc has announced that its North American soft drinks unit will become an independent company.

The world's largest confectionery group said Cadbury Schweppes Americas Beverages will become an independent company rather than being sold off.

Larry Young, who has been appointed president and CEO of Americas Beverages said: "We have a strong business and an established market position in the nonalcoholic beverages category.

As an independent company, we are poised for continued success because of our preferred brands, our integrated business model and our heritage of innovation.

Leading manufacturer

Americas Beverages which operates in the United States, Canada, Mexico and the Caribbean - is a leading manufacturer and distributor of flavored carbonated beverages, including Dr Pepper, 7UP, A&W and Canada Dry.

In addition, the company’s own fully-integrated bottling business enables it to control its distribution network and route-to-market which contributed around 30 percent of Americas Beverage' revenues in 2006.

The majority of the Bottling Group's revenues come from the bottling and distribution of Americas Beverages' own brands.

More than 80 percent of its revenues come from the United States.

Cadbury’s added in a trading statement that it had seen very strong third-quarter confectionery revenue growth of ten percent.

October 10 2007

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