Cadbury Buys Bottlers

Cadbury Schweppes, the chocolate and soft drinks group, recently sooothed City worries over its drinks distribution in the US with the £441m purchase of two American bottling companies. The company said the deals will secure the future of its 7-Up brand and others in the American soft drinks market. The City had been concerned that Cadbury was over-reliant on the bottling and distribution system of arch-rival Coca-Cola. Cadbury will be a minority equity partner with Carlyle Group in the acquisition of Midwest Beverage America and Select Beverages, but it will have full management control of the new group, to be called American Bottling Company. Cadbury Schweppes share rose 20.5 to 756.5p. (whole item)