Cadbury Schweppes ceo Tod Stitzer has launched an auction of the group's European soft drink range, including such iconic brands as Schweppes and Orangina (in France). The Schweppes brand will be retained in the USA.
The asset sale is expected to raise up to £1.1 billion ($1.83bn; €1.47bn), the proceeds from which will be used to fund expansion in the US and elsewhere on the globe.
Explains Stitzer: "The potential for growth and value creation is greater in the group's other operations, and therefore we believe it is in the best interests of our shareowners to investigate a sale of the business."
The European soda business represents around 10% of Cadbury's total sales, dwarfed by its US sibling which generates 25%.
The sale "won't fundamentally change the profile of the business," Stitzer assures. Cadbury will begin the sale process "in the near future" but remains tight-lipped as to whether it has yet received any informal approaches regarding the disposal.
Data sourced from Telegraph.co.uk; additional content by WARC staff
