Cadbury Schweppes said last week that it plans to sell its Europe Beverages business to focus on its confectionery and other beverage businesses with greater potential for higher growth and returns, including those in the U.S.
The company did not disclose a projected selling price, but news reports said it could likely fetch more than $1.8 billion.
“Europe Beverages has a great portfolio of brands, a talented management team and strong routes to market,” said Cadbury Schweppes CEO Todd Stitzer, in a statement. “I’m proud of the commitment and dedication of its workforce. 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 shareholders to investigate a sale of the business.”
The Europe Beverage products include carbonated soft drinks, mineral waters and still drinks. Its brands include Schweppes, Orangina, TriNa, Oasis and La Casera, which account for about 75% of sales, the company said.
In 2004, Europe Beverage reported revenue of GBP653 million, with volume of 1.7 billion litres, making it the third-largest player in the European carbonated soft-drinks market, the company said.
London-based Cadbury Schweppes’ brands also include Cadbury, Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett.
The company employs about 50,000 across the globe, with about 7,000 in Britain.
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