LYCOS RETRIEVER 
Cadbury Schweppes
built 446 days ago
Over a million Cadbury Schweppes chocolate bars were recalled in the UK after the Health Protection Agency (HPA) found a rare salmonella strain in its products. A HPA investigation found that 37 of 56 salmonella cases reported between March and July were linked to Cadbury products. Products being taken off the shelves include Cadbury Dairy Milk Turkish 250g, Dairy Milk Caramel 250g, Dairy Milk Mint 250g, Dairy Milk Eight Chunk and Dairy Milk 1kg. The contamination was attributed to a leaking pipe at Cadbury’s Marlbrook plant, near Leominster, Herefordshire. Cadbury Schweppes estimated that the cost of the recall will amount to $20 million by the end of this year.
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Cadbury Schweppes is the world's largest snack and drink maker by market share. The company traces its roots, in some shape or the other, all the way back to the late 18th century. It took its current form in 1969 after the merger between Cadbury and Schweppes. However, the company's independence has been threatened over the last couple of years (a number of parties have had an eye on acquiring it) as it struggles a bit financially, specifically in the area of profit margins. For example, according to equity research group Sanford Bernstein; even though candy sales at Cadbury last year (£4.9 billion) were double those of rivals, profit margins were only at 10.1% compared to the 18.5% at Wrigley and 20.4% at Hershey. Recently, Cadbury vowed to fix these problems by adopting a 4 year plan which calls for the closure of a number of plants and a 15% reduction in the work force.
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Cadbury Schweppes has succeeded in its appeal to the Full Federal Court in its trade practices claim against Darrell Lea relating to the use of purple get up. The Full Court has remitted the matter to the primary judge for further trial.
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Cadbury Schweppes selected Capgemini to help it deploy an approach based on the latter’s Integrated Architecture Framework (IAF) and Service–Oriented Architecture (SOA). As part of the program, the company defined and created its own Component Based Architecture (CBA), which it considers to be synonymous with SOA. Solutions can be designed and developed as components or services. New systems can be deployed in a much more gradual way than they were before. Cadbury Schweppes is committed to maximizing its use of packaged application solutions from vendors like SAP and Oracle/Siebel deployed as components. This new approach to solution delivery was adopted by Cadbury Schweppes through its own architecture office, which was set up with the help of Capgemini.
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Cadbury Schweppes became one of the first high-profile companies forced to temporarily shelve a major impending deal due to the dramatic recent tightening of the credit markets. It announced this morning that it was indefinitely extending the bidding deadline for its North American beverage unit. The Dow Industrials declined by over 300 points yesterday thanks to concerns over credit markets and are in red again today. Cadbury's decision to extend bidding illustrates those concerns as the British confectioner probably realized that a deal is not viable in the current market. Given the fact that Cadbury has always been somewhat reluctant to sell-off the North American unit and there is no revised timetable for a deal, what is the most likely scenario in the foreseeable future for Cadbury's beverage unit and for the overall company?
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Cadbury Schweppes began to take on Coke and Pepsi with increasing vigor. In 1986 it bought the Canada Dry and Sunkist soft drink lines from RJR Nabisco for $230 million. RJR Nabisco was anxious to leave the soft drink business in the face of increased competition from Coca-Cola and Pepsi, which were growing ever larger. Pepsi had just acquired Seven Up, and Coca-Cola had agreed to buy Dr Pepper, a deal that would later fall apart. Sunkist was in danger of losing market share to Coca-Cola's new Minute Maid line and Pepsi's Slice. But while RJR Nabisco was ready to get out, Cadbury Schweppes was desperate to get into the market.
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