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LONDON -- Following talks in London today, Cadbury Schweppes has officially announced its new confectionery strategies, to be implemented following the separation of its drink division, Americas Beverages.
After Cadbury Schweppes separates its Americas Beverages drinks division, the company plans to rename itself Cadbury plc, and undertake a cost reduction initiative, according to Confectionerynews.com.
Saying it will "focus on fewer, bigger and more value-creating initiatives" and "significantly reduce complexity across all aspects of the business," Cadbury plans to close 15 percent of its manufacturing sites around the world, and cut 15 percent of its workforce. It hopes to increase its percentage margins to the mid-teens by 2011, from a 2006 confectionery margin of 10.1 percent.
In March 2007, the company said it would separate Americas Beverages and confectionery, and confirmed this week a "sale is the more likely outcome," according to Confectionerynews.com.
The company has also reorganized its confectionery business from three to four regions; Britain, Ireland, Middle East and Africa will come under one region; the Americas, Asian Pacific and Europe are the other three.
In a separate trading report, Cadbury Schweppes reported revenues in the first quarter of 2007 were up 8 percent in its developed markets and 11 percent in the emerging markets.