Corporate Strategy Case Study

Cadbury’s Exit from Soft Drinks Market – A Strategic Move?

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Abstract:
In 2008, Cadbury Schweppes PLC, the world's largest British confectionery company, sold its Australian beverage business - popularly known as 'Schweppes Australia' which was incidentally Australia's second largest non-alcoholic beverage unit, to Asahi Beverages - Japan's second largest beer company. It saw a bigger opportunity available for them on the confectionery side rather than in soft drinks. As Cadbury wanted to concentrate on its core domain viz, the confectionery business, it exited completely from their global beverage business. The case mainly focuses on Cadbury's decision to quit the soft drinks industry. Besides covering briefly Cadbury's beverage business worldwide and the Australian soft drinks market, the case also deals with the merits and demerits of the decision to exit the beverage business by Cadbury.

Pedagogical Objectives:

• To analyse the reasons behind Cadbury's global exit from the beverage business.
• To discuss the exit strategy of Cadbury.
• To discuss the benefits of this deal for both the companies.

Keywords : Cadbury; Confectionery; Beverages; Global; Exit; Corporate strategy; US; South Africa; Europe; Strategy execution