The UK's confectionary and soft drinks group Cadbury Schweppes Plc is set to see a 10% rise in 2001 profits next week, analysts have predicted.

The growth is put down to acquisitions such as Snapple and Orangina, as growth in its two core businesses is largely expected to be flat.

Late last year Cadbury said it would meet its double-digit underlying earnings growth target in 2001, after reporting a 11% rise in underlying earnings in the first half of the year.
And earnings growth should continue into this year as the value of the acquisitions is fully realised.

But analysts warn the US carbonated drinks unit, Dr Pepper/Seven Up, faces a declining market and growing competition, particularly from Coca-Cola Co and PepsiCo Inc.

Analysts at Schroder Salomon Smith Barney said that Cadbury's "Managing for Value" strategy to improve efficiency has helped the group exceed its 10% earnings growth target since 1997, but that earnings will soon start to slow, Reuters reported today.

It is expected the group will report underlying pre-tax profits for 2001 of £860-875m after up from  £792m in 2000. The results are released on Wednesday February 13.