Confectionary giant Cadbury Schweppes has forecast robust sales growth this year and has unveiled plans for a new chewing gum factory in Poland.
The world's second largest gum maker, after the Wrigley Company, says the £70 million ($123m; €103m) facility will open in 2008. Current brands include Trident, Hollywood, Stimorol and Dirol. It is also planning to invest £30m to expand production of sugar-free gums in Mexico.
Comments ceo Todd Stitzer: "It is an important investment which will enable us to continue to deliver strong growth and innovation from our portfolio of gum brands."
Cadbury, headquartered in London, has just offloaded its European beverages brands, including Schweppes, Orangina and Oasis to two private equity firms for £1.26 billion, a deal expected to be inked early next year [WAMN: 23-Nov-05].
Despite Stitzer's up-beat sales message, the company says it is unlikely to meet its profit margin goal, due to increased costs, particularly in the US as a result of higher oil prices and hurricane disruption.
Data sourced from Telegraph.co.uk; additional content by WARC staff