Cadbury Schweppes To Split Business

To maximize shareowner value, Cadbury Schweppes is evaluating options for the intended separation of its confectionery and Americas Beverages businesses. According to Chairman Sir John Sunderland,"We believe now is the moment to separate and give both management teams the focused opportunity to extract the full potential inherent in these excellent businesses." Since adopting a "Managing for Value" philosophy in 1997, Cadbury Schweppes has substantially strengthened the position of its confectionery and beverages businesses. In confectionery, acquisitions of Hollywood, Dandy, Kent and Adams lend to the broadest category participation and geographic footprint in the global confectionery industry. Future initiatives, including improving the margin performance in emerging markets and reconfiguring the supply chain, will require incremental investment, and the returns for shareowners are believed to be maximized through a focused stand-alone confectionery business. In beverages, Cadbury Schweppes has built critical mass and strengthened its route to market, primarily through acquisitions as well. At the same time, it sold businesses when value could be delivered to shareowners. The Board has continued to keep the position of the beverage business under review and now believes Americas Beverages has the appropriate platform to exploit the benefits of focus as a stand-alone business. The company reports that shareowners are supportive of the plans for enhanced growth and returns. At press time, Forbes reported that Cadbury is flirting with the idea of buying Hershey, its largest U.S. rival. //