Cadbury vows to carry on with drinks split

Cadbury Schweppes today insisted the turbulent debt markets would not derail plans to separate its 7UP-to-Dr Pepper drinks business in North America.

The confectionery giant is pursuing a sale process, but said it was prepared to carry out a demerger if markets did not stabilise sufficiently.

Cadbury revealed last week it would give suitors more time to put together their bids “against a more stable debt financing market”.

Stripping out the drinks business, Cadbury said underlying profits fell 6% to £180m (€267m) in the first six months of the year.

While revenues grew by 6% to £2.3bn (€3.4bn), Cadbury said profitability was hit by a number of factors, such as exchange rates and the cost of launching its Trident gum business in the UK.

Cadbury also received a £1m (€1.4bn) fine after admitting last month to food safety offences.

The charges, which included a failure by Cadbury to notify the authorities of positive tests for salmonella, were brought by Birmingham City Council and Herefordshire Council after a total of 42 people fell ill in the first half of last year.