Mining Industry and the Effects
StrengthsStrong leadership position in confectionary marketsExceptional performance by Adams in the USSale of Cadburys Schwepps European drinks businessWeaknessesOpportunitiesNew product launchesRobust organizational changes driving performanceGrowth in the UK confectionery market.Purchase of Green and BlacksThreatsGrowing Health ConcernsRetailer PressureStrengthsStrong Leadership position in confectionery marketsCadbury 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 Wrigleys. 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: DatamonitorExcellent Performance of AdamsIn 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 Cadburys confectionary position, particularly in the US. The acquired business was evidence of Cadburys 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: DatamonitorSale of Cadburys European Drinks DivisionIn November 2005 Cadbury sold its struggling European Drinks Division to Blackstone Group and Lion Capital for a reported £1.27 billion, this is