Australia Business Not To Split Due To Importance Of Scale

March 2007 | Company News Alert

UK-based confectionery major Cadbury Schweppes has confirmed that the reported separation of its US confectionery and soft drink divisions will not extend to Australia, where the two operations are believed to be far more compatible. Cadbury is to divest its American soft drink business, which has never performed as effectively as its soft drink unit in the US, due to a lack of control over independent bottlers and a failure to close the gap on runaway market leaders The Coca-Cola Company and PepsiCo. Certainly Cadbury's Australian soft drinks business is not without its problems, and yet BMI believes that these

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