Cadbury to sell final drinks business
Cadbury is to sell its last remaining drinks business to focus on chocolate and sweets as the group re-confirms guidance for strong profit growth. The company will divest its Australian beverages unit, estimated to be worth £600 million (€652m), in order to become a pure confectionery group.
The Australian division is the last drinks business to be sold by Cadbury after it divested Dr Pepper Snapple in the US last year.
Chief executive Todd Stitzer confirmed confectionery sales in Western Europe were holding up well, partly as a result of consumers eating more chocolate and chewing more gum as they cut back on more expensive luxuries. “Looking forward, despite forecasting a 6-8% rise in input costs for 2009 and weakening economic conditions, we remain committed to delivering mid-teen margins by 2011 and making further progress towards that goal in 2009.”
Cadbury also announced that Andrew Bonfield will take over as chief financial officer from Ken Hanna when he retires in April. Mr Bonfield is the former chief financial officer of US pharmaceuticals group Bristol-Myers Squibb.
