British confectionery company Cadbury Schweppes has come up with some sweet results. Its sales rose 10% in the third quarter which meant that sales growth for the first nine months of the year was 7%. The maker of Dairy Milk chocolate and Trident gum has raised its full-year forecast saying revenue will increase by more than 6% this year.
By a slim margin, Cadbury Schweppes is the largest producer in the market, with 10% of worldwide sales. It is followed by Mars of the US, Swiss based Nestle and Wrigley also of the US, but the top four have less than a third of the total.
Like the rest of the industry, Cadbury is facing increases in the cost of raw materials including milk and cocoa. To address that it plans to raise prices.
Cadbury said it is on track to split its confectionery and drinks units. That follows pressure from US billionaire activist investor Nelson Peltz. The beverage side of the business – to be called Dr Pepper Snapple Group – is due to be listed in New York by the middle of next year.