US: Cadbury drinks arm aims to "outmarket" rivals

By | 20 July 2007

The US drinks arm of Cadbury Schweppes has said it aims to "outmarket" its competitors, according to reports.

Earlier this week, chief consumer officer Randy Giera said that rivals such as Coca-Cola Co. and PepsiCo should be prepared for the unique marketing campaigns it is capable of offering.

The executive said: "When you're not the biggest, you have to make sure you punch above your weight. We're up against giants. We aren't going to outspend Coca-Cola. We're not going to outmuscle PepsiCo. We're going to outmarket them.

"When you're not the biggest, you have to make sure you punch above your weight," Gier was cited as saying.

Last month, the company confirmed that it will look to sell off its beverage arm in North America. Since then, speculation has mounted as to who would look to buy it, including The Coca-Cola Co., who has said it is interested in acquiring Cadbury Schweppes' iced tea line Snapple.

Although no deadline has been set for bids, just-drinks understands that a decision on a purchaser is imminent - possibly within the next month.

Separate reports have suggested that a rise in the cost of borrowing in the US will result in the asking price for the drinks unit being cut by around GBP500m (US$1.02bn). Sources close to Cadbury have claimed that the unit will probably raise a maximum of GBP7.5bn and not the GBP8bn initially expected.

Sectors: Soft drinks, Water

Companies: PepsiCo, Cadbury Schweppes, Coca-Cola Co

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