Blog: Schwepped away
Chris Brook-Carter | 8 September 2005
Everyone appears to have already known it but, after months of speculation, Cadbury Schweppes finally got round to admitting it as well - its European soft drinks is surplus to requirements.
A sale of the unit is expected to begin later this year and early estimates put a price tag of up to US$2bn on it.
The European beverage unit has looked like rather a spare part since 1998 when Cadbury failed to sell it to Coca-Cola as anti-monopoly authorities blocked the path.
Those same competition concerns will keep Coke out of the running this time round, and early indications seem to suggest that a series of private equity groups lead the pack looking to down the liquid diet of Orangina, Schweppes and Oasis. Carlyle Group tops this list but other names thought to be interested include PAI, Lion Capital, Cinven and BC Partners.
All eyes, however, will be on PepsiCo to see if the US snack and soft drinks giant will mount a bid of its own.
Should Pepsi throw its hat into the ring, then the asking price could soar, given the synergies a buyer from within the drinks trade could muster out of such a deal.
For Cadbury, the sale represents an opportunity for greater financial and strategic freedom. While it will no doubt use proceeds to cut its debt, that freedom may extend into acquisitions. Indeed, there are already noises it may use the capital to buy Carlyle’s share in the US bottler of its Dr Pepper and Seven Up brands. It would be a neat end to a long drawn out process.
Bacardi's 42 Below vodka brand has found a novel way to use the lemons left over from cocktail-making: Turn them into liquid soap....
Philadelphia’s soda tax came into force on Sunday, and is reportedly causing a stir in the city's check-out aisles....
Earlier this month, I was most-kindly invited by Accolade Wines to visit the Royal Albert Hall in London. The reason? They wanted to see a tennis great in action, and then give them a guided tour thro...
Do you like whisk(e)y? And, I mean, really like whisk(e)y? Are you at a loose end in the first half of 2017? If so, then I've found just the job for you....
- Interview Berry Bros & Rudd CEO Dan Jago - Part I
- Interview Berry Bros & Rudd CEO Dan Jago - Part II
- The threat of excess choice in beer is over-stated
- Key trends for the spirits sector in 2017 - Focus
- Signs of life in Japan's beer market - Comment
- Pernod Ricard's Method and Madness Irish whiskey
- Diageo faces US$68m payout after SAP court loss
- Wm Grant names Victor Jerez business director
- Bacardi takes stake in Ilegal Mezcal
- Premium to counter mainstream in gin - research
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Global gin insights - market forecasts, product innovation and consumer trends