Cadbury enjoys tasty start to the year

Confectionery group Cadbury Schweppes maintained its encouraging start to the year today as it reported further market share gains in the UK.

Cadbury Schweppes trades as Cadbury Ireland in this country, with a Cadbury factory located at Coolock, Dublin and a chocolate crumb factory in Rathmore, Co Kerry.

More than €163m worth of Cadbury chocolate is produced in Ireland and is exported annually.

Today parent company Cadbury Schweppes said it remained on course to deliver annual results in line with its key targets, which include net sales growth in the region of 3% to 5%.

In the UK, Cadbury said Easter sales were slightly ahead on a year earlier while its share of the chocolate and sweet market – currently estimated at 32% - also showed improvement.

Despite the recent drive towards healthier eating in the UK, a spokeswoman said Cadbury continued to benefit from the positioning of products as “treats”.

The company relaunched its Cadbury Dairy Milk range last year in an overhaul that saw products such as Crunchie, Fruit & Nut and Caramel more closely tied together under the same branding.

Last year the company’s UK business – Cadbury Trebor Bassett – reported record sales, profits and market share.

Overall, Cadbury is looking for an improved performance after reporting a 32% fall in pre-tax profits during a “transitional” year in 2003.

Today’s update – issued ahead of the company’s annual general meeting – showed that improved trading in the fourth quarter of 2003 had continued into 2004.

Chief executive Todd Stitzer said: “We have had an encouraging start to the year with good results from all our key business units.”

He added the company was particularly encouraged with the continued improvement in its US drinks business and the impact of marketing and new products on its confectionery operations in the Americas.

In the company’s Europe, Middle East and Africa trading region, sales growth was seen across most of the main markets.

Cadbury added that the recently-acquired Adams gum and medicated sweet business was performing well and that its integration remained on track.