Cadbury Schweppes To Spin Off American Beverage Business

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Cadbury Schweppes To Spin Off American Beverage Business

03/22/2007
Cadbury Schweppes plans to separate its confectionery and Americas Beverages business to maximize shareholder value, the company said.

It will retain its confectionery business, the largest in the world with a 10-percent global market share, and spin off its U.S. Americas Beverages business, which includes the Dr Pepper, 7-Up, Sunkist, A&W, Snapple, Mott's and other brands. The confectionery business includes Cadbury, Trident, Halls, Dentyne and other brands.

The move will enable management to focus on generating revenue growth, increasing margin and enhancing returns for shareholders, the company said.

Evaluations for the split are still underway with the company planning to provide further information June 19.

Some reports suggested the recent move by activist investor Nelson Peltz, who bought a 3-percent stake in the company, may be behind the announcement.