Cadbury Schweppes has yet to decide what to do with any proceeds from the separation of its US drinks business from its confectionery operations.
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The UK-based group was responding to reports that the company is planning to return GBP5m (US$9.9m) to shareholders when it divides the two units.
The US drinks business, which includes Snapple, Dr Pepper and 7Up, has been valued at about GBP8bn.
According to reports, Cadbury is planning to return capital to investors through a special dividend or share buyback.
Analysts have also suggested that Cadbury would use the capital to fund acquisitions and reduce debt. Likely acquisition targets have been identified as Hershey, Kraft’s confectionery unit and Italy’s Ferrero.
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By GlobalDataHowever, according to a Cadbury spokesperson, the company has not yet come to a decision regarding its strategy after the separation.
“Until we decide which separation method to pursue – sale or spin-off – we won’t be able to make such a decision,” the spokesperson told just-food. “Under these two scenarios what you could do with the proceeds is very different.”
