Blog: Off the job
Chris Brook-Carter | 28 October 2003
The number three soft drinks producer Cadbury Schweppes is to undergo a four-year cost-cutting program that will eliminate about 10% of its 55,000 jobs worldwide and 20% of its 133 factories. This news was followed by the announcement from industry leader Coca-Cola Company today that it will increase the number of jobs it is cutting worldwide by nearly 50%, to 2,800, from a previously disclosed 1,900.
Cadbury’s cost cutting is meant to raise its operating profit margin and help generate about £1.5 billion (€2.15 billion) in free cash flow over the four-year period. The company says it plans to pour as much as one-third of the cost savings into product innovations and increased spending on marketing to drive net annual sales growth from the average 3% it has posted in recent years to a range between 3% and 5%.
Coke, meanwhile, said it had further reviewed all worldwide operations to improve its overall efficiency and effectiveness. Coca-Cola said it expects to derive at least US$50m in pretax cost savings this year and at least US$100m beginning next year.
Investors have welcomed the initiatives, but both are the product of the fiercely competitive environment at present in the sector. Cadbury has so far refused to give details of exactly how it will spend the money and until it does there will still be some caution as to whether it can meet these growth targets.
This weekend sees yet another “International Day” for a drinks category. Lucky us. Anyway, ahead of Sunday’s International Cachaça Day, here’s a wealth of information on Brazil’s national spirit, cour...
In yet one more sign that The Coca-Cola Co is losing its lustre, the soft drinks maker has, for the first time, fallen out of the top ten of a 'world's biggest brands' ranking....
What a week for stats! Yesterday, the Beverage Marketing Corporation released figures to show the bottled water market had more than doubled over the past 15 years in the US....
The Euro 2016 football tournament is almost upon us....
- What Brexit means for drinks industry? - Analysis
- The post-Brexit winners and losers - Analysis
- What does Brexit mean for AB InBev's SAB deal?
- Is there a future for the global beer brand?
- Can fruit cider survive UK slowdown? - Focus
- The UK Referendum - just-drinks Live Blog
- Aldi dealt alcohol sales blow in Australia
- Ex-William Grant CEO Stella David re-joins Bacardi
- UK spirits producers braced for Brexit impact
- Maxxium eyes US$1.4bn opportunity in UK spirits
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Spirits and Wine: Corporate Overview
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends