Cadbury Plans Cost Cuts, Likely Sale of Soft Drinks
Cadbury Schweppes, the world's largest confectionery group, plans to cut 15% of its jobs and factories, while adding a sale is the likely outcome rather than a demerger for its American drinks unit.
The British group said on Tuesday its new confectionery strategy will mean cuts in its 50,000 workforce and 60 factories to drive through efficiencies as it emerges as a pure confectionery player similar to its U.S. sweet rivals.
The London-based company, maker of Dairy Milk chocolate, Trident gum and Trebor mints, was announcing its confectionery alone strategy as it decided on a likely sale of its Dr Pepper and Snapple drinks business, and a likely return of capital to shareholders.
The added it had made a strong start to the year in both confectionery and beverages for 2007.