Cadbury Schweppes splits confectionery, beverages businesses

In an effort to maximize profits and shareowner value, Cadbury Schweppes is breaking off its confectionery business away from its beverages Americas business.

The company is reportedly bowing to pressure from billionaire investor Peltz who owns almost three percent of Cadbury. (He fought a well-publicized battle last year to get elected to the board of HJ Heinz.)

In the region, Cadbury Schweppes says it has increased gum revenues by over 10 percent per year; gained share in key markets including Japan and Thailand; and launched gum through existing routes to market in Malaysia.

"Separating these two great businesses will enable two outstanding management teams to focus on generating further revenue growth, increasing margin, and enhancing returns for their respective shareowners," explains Todd Stitzer, chief executive officer.