Cadbury Schweppes Adams Case Study

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Mergers, Acquisitions and Takeovers Case Study


Case Title:

Cadbury Schweppes� Acquisition Strategy

Publication Year : 2010

Authors: M Verma

Industry: Food, Diary and Agriculture Products

Region:US

Case Code: MAA0175IRC

Teaching Note: Not Available

Structured Assignment:  Not Available


OR



The $11.8 billion Cadbury Schweppes is a global manufacturer and marketer of branded confectionery and beverage products. Its popular brands include Cadbury, Trident, Dr Pepper, Halls and 7UP. Cadbury Schweppes has a presence straddling chocolate, sugar and gum categories. Its products are primarily 'impulse purchase' products and are sold to customers through several different outlets ranging from grocery stores, petrol station kiosks to fountain equipment at leisure, food and entertainment venues. The company has fuelled its growth through acquisitions. Concentrating on its core brands, it has strengthened its portfolio through acquisitions. Analysts feel that Cadburys is too dependent on chocolates, a stagnant category and its beverage portfolio is eschewed. To correct the anomaly, it concentrates on non-cola acquisitions, developing core brands and pricing strategy to drive growth in the US non-carbonate category. To reduce its dependence on chocolates it acquires international and regional gum brands and sugar free candies with the aim of increasing its exposure to faster growth categories. The company also concentrates on generating faster organic growth. It also goes for a master branding strategy and cross product development to enhance growth. It focuses on becoming the number one player in all the markets it is operating in.

Cadbury, Confectionery, Beverage, Adam, Master branding strategy, Acquisition strategy, Core branding strategy, Diversification strategy, Marketing strategy, Organic growth, Brand portfolio management, Retail strategy, Competition, Dr Pepper, Trident


Introduction
About Cadbury Schweppes
The Adams acquisition
Other Acquisitions
Category-wise Revenue Contribution
Cadbury Schweppes� brands
Cadbury�s SWOT Analysis
Shareowner Performance
US non carbonated beverage

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Cadbury Schweppes: Capturing Confectionery (A)

David Collis, Toby Stuart and Troy Smith

In late 2002, global confectionery and beverage maker Cadbury Schweppes needed to decide whether or not to make an acquisition bid for Adams, an underperforming gum company which had been put up for sale by pharmaceutical giant Pfizer. Examining the decision from a strategic perspective, the (A) case provides brief histories of the two companies; traces the global confectionery industry, focusing especially on chocolate and gum; and details the analysis of the merger decision. The (B) case explores the specific identified synergies in-depth and provides an opportunity to judge their viability. The (C) and (D) cases conclude the story and update the case with issues facing the global confectionery leader in 2008.

Keywords: History; Strategy; Decision Choices and Conditions; Mergers and Acquisitions; Food and Beverage Industry;

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