UK's Cadbury to buy out Dr Pepper
UK's Cadbury to buy out Dr Pepper
UK's Cadbury to buy out Dr Pepper
Cadbury Schweppes is close to acquiring the Dr Pepper/Seven Up Bottling Group, the largest independent bottler in the
The acquisition, expected to be announced shortly, will give Cadbury greater control over the distribution of its
Cadbury has a 45 per cent equity stake in the bottling group, with most of the remainder held by Carlyle.
Cadbury and Carlyle bought the privately held group for $283m in cash and $408m in debt in 1999.
Analysts said that Cadbury – the third-biggest soft drinks manufacturer in the
Cadbury declined to comment.
The purchase will add to growing signs of restructuring in the
Beverage companies are seeking greater consolidation among bottlers in response to mounting pressure from powerful retail chains such as Wal-Mart for suppliers to become more efficient.
By gaining greater control of its distribution network, Cadbury could negotiate with retailers directly.
About 24 per cent of its fizzy drinks are distributed by the Dr Pepper bottling group, with much of the rest distributed through bottlers part-owned by Coke or Pepsi.
Some analysts say that combining its manufacturing and distribution operations may also make it easier for Cadbury to eventually spin off its
Although the
Cadbury's claims to be the world's biggest confectionery company, with a market share of about 10 per cent, putting it ahead of Mars, Nestlé and Hershey.
Cadbury has been diversifying away from chocolate confectionery in recent years and has been moving more heavily into sugar confectionery such as chewing gum.
Cadbury is keen to challenge Wrigley's dominance of the global gum market.
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