Cadbury proceeds with sale of last drinks business

In a trading update, Cadbury, which separated its confectionery and drinks businesses in Europe and America earlier this year, said that despite weakening economic conditions in the fourth quarter, the Group had performed in line with expectations. The company’s Britain, Ireland, Middle East and Africa region continued to grow well, it said. The Europe region has sustained a steady performance despite continued difficult market conditions. In the Americas, growth remained strong in South America while softening in North America. Emerging markets in Asia Pacific continued to perform well, offsetting expected weaker trading in Australia. Cadbury said it had decided to sell the Australia Beverages business. And that the separation of the beverage and confectionery businesses there was now well advanced. Chief executive Todd Stitzer said: “I am pleased to confirm that the Group has continued to perform in line with expectations and that we expect to deliver strong profit growth for the year as a whole. Looking forward, despite forecasting a 6-8% rise in input costs for 2009 and weakening economic conditions, we remain committed to delivering mid-teen margins by 2011 and making further progress towards that goal in 2009.”