Cadbury Schweppes Sales up 6%; May Sell European Soft Drinks Unit

Cadbury Schweppes, the maker of Dr Pepper and 7 Up, reported that sales were up 6% in the first half of the year to 3.1 billion GBP, or $5.4 billion, driven by higher investments and innovation.

Confectionery sales were up 7%, led by growth in major brands Cadbury Dairy Milk chocolate (up 9%), Trident chewing gum (up 15%) and Halls cough drops (up 17%). The period ended June 19.

Beverage sales rose 4% with share gains in U.S. carbonates and strong growth in Mexico and Australia. Cherry Vanilla Dr Pepper, which launched in the second half of 2004, was the most significant growth contributor in the beverage category. As a result, Dr Pepper volume was up 7% for the half year. The company cited a “major uplift” in promotional and marketing spending on Snapple, Mott’s, Hawaiian Punch and Clamato, which benefited non-carbonate volumes in the U.S., the company said.

Marketing spending overall was up 6% during the half-year.

The company said Americas Beverages had an “excellent” first half with sales up 5% compared to 2% in 2004. Americas Confectionery sales were ahead by 14% with performance strong in all markets. Europe, Middle East and Africa (EMEA) sales were up 5% and Asia Pacific sales rose 6%.

In reporting its half-year results, the company also announced that it had hired Jim Chambers as president, Americas Confectionery. He replaces Matt Shattock, now president EMEA Confectionery. Most recently, Chambers was president of Rémy Amérique.

“We’ve had a strong start to the year as increased investment in growth and focus on innovation and marketplace execution have had a positive impact on our businesses around the world,” CEO Todd Stitzer said in a statement. “Although the external environment is likely to remain challenging, we will continue to increase investment behind long-term growth and expect to deliver within our goal ranges for the year.”

In a separate development, Cadbury Schweppes has appointed Goldman Sachs Group, Inc., to sell its European soft drinks unit, according to news reports. The report cited private equity group Kohlberg Kravis Roberts & Co. as a potential buyer.

Looking ahead, the company expects continued sales momentum with a focus on innovation and market place execution.