Cadbury to sell drinks business
Cadbury Schweppes put the drinks unit behind Oasis and Orangina up for sale today after its growth lagged behind other parts of the business.
The group is inviting offers for its Europe Beverages division that analysts think could be worth as much as £1.1bn (€1.6bn).
The move follows a strategic review and will enable Cadbury to focus on its confectionery business that grew sales by 7% in the first half of this year and its drinks businesses elsewhere in the world.
Disposal of Europe Beverages, which also makes the Spanish drink La Casera and the Schweppes range of mixers, will enable the company to cut its debt, which stood at £4.3bn (€6.3bn) at the end of June.
Although a disposal will mean the company will no longer sell Schweppes-branded products in Europe, a spokesman said there were no plans to change its corporate name because it still markets the drinks in countries including the US and Australia.
Chief executive Todd Stitzer said: “Europe Beverages has a great portfolio of brands, a talented management team and strong routes to market.
“However, the potential for growth and value creation is greater in the group’s other operations, and therefore we believe it is in the best interests of our shareowners to investigate a sale of the business."
