Brands & Branding and Private Labels Case Study

Cadbury Schweppes' Beverage Business: Brand Unification and the Dilemmas

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Abstract:
Cadbury Schweppes had grown its beverage business through several key acquisitions. Due to increased competition from other brands and a shift in consumer tastes, Cadbury started losing its market share in 2003. The company announced a restructuring plan to reorganise its operations. Part of the plan was to integrate its three popular brands (Snapple, Dr. Pepper/7 Up and Mott) into a new unit, Cadbury Schweppes Americas Beverages. The company also sold its European beverage business to concentrate on the beverage business of the US and Australia. The move led to speculation by analysts that the company may sell off its entire beverage business.

Pedagogical Objectives:

• To discuss the restructuring strategy being followed by Cadbury for its beverage business
• To discuss whether Cadbury will be able to face stiff competition in the beverage business, especially in the US
• To discuss whether Cadbury will sell off its beverage business to concentrate on its confectionary business.

Keywords : Cadbury Schweppes Plc, Beverage business, Inorganic growth, Brand unification, Brands & Branding Case Study, Third party bottlers, Management changes, Business restructuring, Cadbury Schweppes Americas Beverages, Fuel for Growth plan, Smart Variety plan

Contents:

• Cadbury Schweppes PLC: Product Profile
• Cadbury Schweppes' Beverage Business: Brand Unification
• The Dilemmas
• Cadbury Schweppes Beverage Brands