Professor: Elias G. Rizkallah
Class: MKTG 676 Advertising Management Group case study March-06-2013 1. Background: (1) History: Cadbury Beverages, Inc. is the beverage division of Cadbury Schweppes PLC, a major global soft drink and confectionery marketer, located in London, England; worldwide headquarters are in Stamford, Connecticut. Company is the world’s first soft drink maker and 4th largest soft drink marketer. Its history can be traced to 1783 in London. The first major product of the Schweppes was artificial mineral water. After the development of 80 years, in 1960s, the company had diversified into different segment of food market.
In 1969, Schweppes merged with Cadbury which was a major British candy maker. In 1989, Cadbury Schweppes PLC was one of the world’s largest multinational firms which owned the Crush, Hires, Sundrop and other famous soft drink brand. (2) Current situation: In 1989, Cadbury Schweppes PLC acquired soft drink brand Crush from Proctor & Gamble for $220 million and PLC had worldwide sales of $4.6 billion, produced by product sales in more than 110 countries. Beverage accounted for 60% of worldwide sales and 40% were confectionary. Crush offers several beverages under the Cadbury Beverages, Inc. Typically they are sold in bottles and cans, except for fountain service (e.g. McDonald’s). Beverages fall under the following categories; Carbonates (Canady Dry, Sunkist, and Crush); Waters (Schweppes, Canada Dry, Pure Spring) and Still Drinks/Juices (Oasis, Mott’s,Clamato). Over the years, Cadbury Schweppes has established a diverse product portfolio of water and juices in addition to its carbonates. Today, trailing only Coca-Cola and PepsiCo, Cadbury Beverages, Inc. is the third largest soft drink marketer in the world 2. Problems and opportunities: (1) Before we start to