Cadbury Swot Analysis Essay examples

4437 Words Oct 12th, 2010 18 Pages
For Immediate Release

17 December 2002

CADBURY SCHWEPPES TO ACQUIRE ADAMS FROM PFIZER Cadbury Schweppes becomes joint No 1 in global confectionery, leader in sugar and functional confectionery and No 2 in chewing gum
Summary • Cadbury Schweppes plc has agreed to buy Adams from Pfizer Inc for a total gross cash consideration of $4.2 billion (£2.7 billion), representing $3.75 billion (£2.4 billion) net for the base Adams business plus $450 million (£288 million) for tax benefits. This base valuation represents 2.0 times 2001 sales and 12.8 times 2001 underlying EBITDA. The deal will be debt financed and is expected to earn a positive return on capital in 2006 and enhance underlying earnings in 2004. Globally, Cadbury Schweppes will
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Adams is also represented in Europe, Africa, the Middle East and Asia. It has an established presence in a number of developing markets, principally Latin America, which in aggregate accounted for around 40% of sales in 2001.

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The Functional Confectionery and Gum Sectors Functional confectionery products combine confectionery eating characteristics with a functional benefit such as relief for a sore throat, nasal congestion, fres h breath or dental care. Functional products are targeted primarily at adult consumers and include power mints, sugar-free gum and medicated confectionery. Functional confectionery is the fastest growing part of the confectionery market. Between 1998 and 2001, functional confectionery volumes grew at an average rate of 5% per annum which compares with 2% for the confectionery market as a whole. Growth rates for functional confectionery are generally higher in developing markets with volume growth rates averaging 6% per annum between 1998 and 2001 as against 4% per annum in developed markets. The retail value of the global market for functional confectionery was estimated at $10 billion in 2001, which represented nearly 10% of the total confectionery market. The retail value of the global market for gum was estimated at $12.3 billion in 2001. The sector includes sugarised gum, sugarfree gum and bubblegum which accounted for 35%, 50% and 15% of global

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