Mergers, Acquisitions and Takeovers Case Study

Cadbury Schweppes’ Acquisition Strategy

OR

Abstract:
The $11.8 billion Cadbury Schweppes is a global manufacturer and marketer of branded confectionery and beverage products. Its popular brands include Cadbury, Trident, Dr Pepper, Halls and 7UP. Cadbury Schweppes has a presence straddling chocolate, sugar and gum categories. Its products are primarily 'impulse purchase' products and are sold to customers through several different outlets ranging from grocery stores, petrol station kiosks to fountain equipment at leisure, food and entertainment venues. The company has fuelled its growth through acquisitions. Concentrating on its core brands, it has strengthened its portfolio through acquisitions. Analysts feel that Cadburys is too dependent on chocolates, a stagnant category and its beverage portfolio is eschewed. To correct the anomaly, it concentrates on non-cola acquisitions, developing core brands and pricing strategy to drive growth in the US non-carbonate category. To reduce its dependence on chocolates it acquires international and regional gum brands and sugar free candies with the aim of increasing its exposure to faster growth categories. The company also concentrates on generating faster organic growth. It also goes for a master branding strategy and cross product development to enhance growth. It focuses on becoming the number one player in all the markets it is operating in.

Pedagogical Objectives:

Keywords : Cadbury, Confectionery, Beverage, Adam, Master branding strategy, Acquisition strategy, Core branding strategy, Diversification strategy, Marketing strategy, Organic growth, Brand portfolio management, Retail strategy, Competition, Dr Pepper, Trident

Contents: 
Introduction
About Cadbury Schweppes
The Adams acquisition
Other Acquisitions
Category-wise Revenue Contribution
Cadbury Schweppes’ brands
Cadbury’s SWOT Analysis
Shareowner Performance
US non carbonated beverage