Cadbury Schweppes today announced the sale of businesses in Australia, Canada and Italy, raising over £45m (€66.4m) towards its 2007 disposal target.
"Once all these transactions are completed, we will have raised over £200 million from our programme of non-core disposals," said Ken Hanna, Cadbury's chief financial officer. "We remain on track to deliver our target of around £250 million from this initiative by the end of this year." Cadbury Schweppes said it was selling its Australian jams, toppings and jellies business to Heinz's Australian subsidiary for £29m. Cadbury expects the sale to be completed early in the third quarter of 2007. The company is also selling Allan Candy, a Canadian bulk and seasonal candy business, for about £10m. It is selling its Italian confectionery business, Cadbury Italia, for £6m. The sales are part of an ongoing worldwide restructuring of the company in a bid to focus on its most profitable operations.
In March, Cadbury Schweppes announced it would separate its confectionery and US soft drinks businesses. Cadbury chief executive Todd Stitzer also said the company was examining options to boost the performance of its confectionery business, which included a detailed review of costs.
Since 1999, Cadbury has sold beverages businesses in about 180 markets. In 2006, it sold beverage operations in Europe, Syria and South Africa for a total of about £1.4bn.