Drinks giant fizzes into legal action

Drinks and candy firm Cadbury Schweppes has filed a lawsuit in the United States against rival PepsiCo, alleging violation of anti-trust laws, it emerged today.

Cadbury’s American subsidiary Dr Pepper/Seven Up has filed the lawsuit, alleging a PepsiCo deal to supply drinks to US restaurant chain Tricon is anti-competitive.

The suit alleges that PepsiCo has entered into an agreement with Tricon - which operates a number of Kentucky Fried Chicken, Taco Bell and Pizza Hut restaurants - that penalises Tricon for carrying Seven Up.

Cadbury said this arrangement restricted the ability of Seven Up to compete in these outlets and limited freedom of choice for the consumer.

The group said the move had seen around 2,300 of the 5,000 Tricon outlets which had stocked Seven Up, cease stocking the drink since the beginning of last year.

The allegation refers to ‘‘fountain’’ sales of the drink rather than canned drink sales.

Cadbury said lost business was not significantly material in terms of its global business, but concerned a point of principle.

A PepsiCo spokesman said: ‘‘We have yet to see the complaint but we have seen the press release. Based on a description of this action, we have every confidence that the suit is without merit.’’