Cadbury Schweppes’ US headquarters said that their Australian confectionery businesses Cadbury Schweppes Foodservice had benefited from new product activity and growth in 2004 over the past year. The company said that locally, their key grocery customers and chocolate market share had grown by 40 basis points to 57%, according to research company Nielsen.
Cadbury Schweppes Foodservice said that their local food and beverage businesses had also grown strongly by gaining shares in both carbonated and non-carbonated soft drinks and the growth had been driven by increased sales of franchise products in the higher-margin impulse trade.
Cadbury Schweppes Foodservice posted a 2% rise in half-year profits with pre-tax earnings, before exceptionals, totaling $688.4 million. In the US, the company’s shares slipped on the news due to underlying sales growth coming in at the bottom of its target range. The confectionery company stuck to its sales and margin annual target despite rising costs and a weak US dollar, while the integration of US-based sweet maker, Adams, was on track.
Chief Executive Todd Stitzer said that he was encouraged by trading in the first year of the company’s four-year Fuel for Growth strategy aimed at boosting sales and margins. He also said that new products helped fuel sales growth and it had cut costs as planned.
Parent company Cadbury Schweppes launched their new strategy to make annual savings of a billion dollars from job cuts and plant closures.