Cadbury Swot Analysis

SWOT analysis for Cadburys Trebor Bassett

Strengths

Strong leadership position in confectionary markets

Exceptional performance by Adams in the US

Sale of Cadburys Schwepps European drinks business

Weaknesses

Opportunities

New product launches

Robust organizational changes driving performance

Growth in the UK confectionery market.

Purchase of Green and Blacks

Threats

Growing Health Concerns

Retailer Pressure

Strengths

Strong Leadership position in confectionery markets

Cadbury has a 9.2% share of the global confectionary market, driven by strong positions in several regional markets. The global category leader - Mars - has only a marginally higher share of the market at 9.9%. Cadbury has number one or number two market share positions in 23 of the top 50 confectionery product markets, including gum, chocolate and sugar. In the US, Cadbury Schweppes' presence is limited to sugar and gum, with a strong leadership position in the latter. In the US gum market, it has competition only in the form of Wrigley's. In 2004, the company was able to further enhance its share of the US gum market by 0.4%. Exceptional performance by Adams in the US

Source: Datamonitor

Excellent Performance of Adams

In March 2003, Cadbury Schweppes acquired Adams from Pfizer for $4.2 billion. Adams is a branded global confectionary manufacturer of gum and medicated sweets that has reinforced Cadbury's confectionary position, particularly in the US. The acquired business was evidence of Cadbury's strong acquisition strategy as Adams was able to deliver significant cost synergies and has begun to deliver revenue synergies. The company has a significant market position in the growing US chewing gum market, driven by a strong 7-8% sugar-free brand growth.

Source: Datamonitor

Sale of Cadbury's European Drinks Division

In November 2005 Cadbury sold its struggling European Drinks Division to Blackstone Group and Lion Capital for a reported Ј1.27 billion, this is significantly more than the 1.1 billion that analysts were anticipating. A combination of health concerns has lead to consumer turning away from carbonated drinks and toward flavoured water and diet brands. This sale will enable Cadbury to focus on the continually growing confectionery market.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/11/22/cxquest22.xml&sSheet=/money/2005/11/22/ixcitytop.html

Weaknesses

Opportunities

Growth in the UK confectionery market.

The UK is the largest confectionery market in Europe holding a 25.7% share. This however was a 1.6% decrease between 1999 - 2003. However the market within the UK has seen steady growth rates of 3.17% between the same periods, with the market value increasing by 10.0%. Market forecasts show that the UK confectionery market is set to grow by an annual average of 2.9% between 2003-2008.

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