UK: UK chocolate revival, US gum cheer Cadbury
A recovery in its UK chocolate sales and growing gum sales in the US have led Cadbury Schweppes to up its sales and margin guidance for its confectionery business this year.
UK-based Cadbury, the world's largest confectioner, said this morning (11 December) it now expects like-for-like confectionery sales to be "above the top end" of its 4-6% target.
The company said its underlying confectionery margins would be "modestly ahead" at constant exchange rates and before "business improvement costs".
Cadbury Schweppes CEO Todd Stitzer said: "Our continued strong confectionery performance reflects sustained investment behind growth and capabilities combined with a recovery in UK chocolate.
"While the economic outlook for 2008 is uncertain, we are confident that our trading momentum will carry on into the New Year, supported by our confectionery growth and efficiency initiatives."
Cadbury said the UK relaunch of its Wispa brand, coupled with a marketing push for Dairy Milk, had helped its chocolate business recover share.
The company said its business in the Americas was having an "outstanding year", driven by its gum portfolio, which includes Trident and Stride.
Cadbury is busy restructuring its operations worldwide in a bid to boost margins and said it would book restructuring charges of around GBP170m (US$348m) in its confectionery business.
Charges from its US drinks arm, which Cadbury is in the process of de-merging, will stand at GBP50.
Cadbury said the de-merger was "on track" and revealed today that the business would be named Dr Pepper Snapple Group.
Cadbury will announce its full-year results for 2007 on 19 February.
As it approaches its 20th birthday, Duchy Originals, the UK food company set up by the Prince of Wales, is undergoing something of a rebirth. Under new chief executive Andrew Baker, Duchy plans to ret...
Rising costs and weak consumer spending is hitting much of the US food industry but one company weathering the storm is Heinz. Two years after a boardroom battle engulfed the ketchup maker, CEO Bill J...
Wrigley chairman Bill Wrigley predicted the confectionery industry would sit up and take notice after his company's deal with Mars. Now, the spotlight has once again switched to Cadbury and Hershey. B...
Cadbury is aiming to expand through organic growth and bolt-on acquisitions, apparently ruling out a potential merger with US confectionery giant Hershey....
Europe's milk strikes have dominated our news pages this week after farmers from France to Austria demanded higher prices. The dispute, alongside the UN's call for higher food production and demands i...
India's largest listed retailer Pantaloon Retail has pulled Cadbury products from over 200 of its stores due to a row over pricing....
Shares in a number of the world's largest confectioners have risen amid rumours that the sector could see further consolidation following the Mars-Wrigley tie-up....
Striking farmers often prove adept at grabbing the headlines and this week has proved no exception. Farmers have launched protests in Germany and the Netherlands in a bid to win higher milk prices as ...
- How brands are eyeing their own retail presence
- Why Lactalis could move for Dairy Crest
- Who could swoop for Diamond Foods?
- Foodservice focus - all-day breakfast; concept NPD
- The consistent inconsistency of European promos
- Nestle, R&R Ice Cream in joint venture talks
- How the food industry is reacting to TPP
- China implements new safety regulations
- Unilever acquires Italian gelato group Grom
- Mondelez 'preparing to sell European cheese unit'
- Management briefing: just-food’s industry outlook for 2015
- Global Savory Snacks Market: Merger and Acquisitions August 2015
- Food and Beverage Coding and Marking Equipment: Market Outlook 2015-2019
- E-Grocery Market in India - Market Research 2015-2019
- Danone SA : Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis