Cadbury Schweppes to sell off European drinks business

by Daniel Farey-Jones, Brand Republic 02-Sep-05, 08:30

LONDON – Cadbury Schweppes is to sell off its European drinks business, which houses brands including Orangina and Schweppes tonic water, in a move that is expected to raise £1bn.

The company has decided it wants to focus more on its US presence, where it owns 7-Up, Dr Pepper and Snapple.

Cadbury Schweppes chief executive Todd Stitzer said: "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 business makes around 85% of its sales in France, Spain and Germany. It consists of carbonated soft drinks, mineral waters and still drinks, which also include Oasis, and European brands TriNa and La Casera.

Potential buyers include private equity groups as well as trade buyers such as PepsiCo and Coca-Cola. However, Coca-Cola is not expected to make a bid after having had a previous attempt to buy the business blocked on competition grounds, according to the Financial Times.

Orangina has just made an advertising comeback with a £2.5m campaign straplined "Shake it to wake it", created by BDH\TBWA.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.