Cadbury denies drinks sale talks
Cadbury Schweppes today distanced itself from reports that it was preparing to sell its drinks unit that makes Orangina and Oasis.
A spokeswoman for the group said there were no talks over a sale of its European beverages arm, which has an estimated value of £750m (€1.09bn).
She said: “We are focussed on growing organically and paying down our debt. We are not in discussions with anybody.”
She was responding to a Sunday Times report that said a number of private equity firms had expressed an interest in acquiring the European drinks business, which also includes the Spanish drink La Casera and the Schweppes range of mixers.
Disposal of this business would have enabled Cadbury to repay some of its gross borrowings that totalled £4.14bn (€6.04bn) at the end of last year.
Sales from the unit totalled £653m (€954m) in the 53 weeks to January 2 and underlying operating profits were £117m (€170m).
The European drinks business suffered from poor weather in 2004 and was unable to repeat the performance of 12 months earlier when it benefited from a summer heatwave.
Chief executive Todd Stitzer told investors at the time of the group’s annual results in February that the European drinks business had lost share in its three key markets of France, Spain and Germany.
But changes to management and improvements in the supply chain in Spain and France were starting to have a positive effect.
Cadbury Schweppes employs more than 50,000 people around the world, including about 7,000 at eight UK sites, including its chocolate factory at Bournville in Birmingham.
Its confectionery business includes brands such as Dairy Milk, Roses, Flake, Crunchie, Double Decker, Picnic, Turkish Delight and Boost.
The company also has a drinks business in North America making Dr Pepper and 7-Up.
