Cadbury Schweppes to Sell European Beverage Business
Following a strategic review of Europe Beverages, the Board has decided to focus the Group's financial and management resources on its confectionery and other beverage businesses which have greater potential for higher growth and returns.
Following a strategic review of Europe Beverages, the Board has decided to focus the Group's financial and management resources on its confectionery and other beverage businesses which have greater potential for higher growth and returns. Proceeds from the sale will initially be used to reduce the Group's net debt which at June 2005 was £4.3 billion.
In 2004, on an IFRS basis, Europe Beverages' revenue was £653 million and underlying profit from operations was £116 million, representing 10% and 11% of the Group's revenue and underlying profit from operations respectively. Its sales volume of 1.7 billion litres makes it the third largest player in the European carbonated soft drinks market.
Europe Beverages' principal products are carbonated soft drinks, mineral waters and still drinks. Its main brands are Schweppes, Orangina, TriNa, Oasis and La Casera which account for around 75% of sales. Other brands include Apollinaris, Pampryl, Gini and Vida. Products are sold across Continental Europe, with some sales in the UK, parts of North and West Africa and the Middle East. Sales are concentrated in three countries, France, Spain and Germany, which account for around 85% of total sales.
The business has wholly owned bottling operations in Germany, Spain, Portugal and Belgium and a production arrangement with San Benedetto in France. In other countries, the business operates through licence agreements with third party manufacturers and distributors. The business has around 3,000 employees.
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