Cadbury agrees Australian drinks sale

Dairy Milk confectionery firm Cadbury today agreed to sell its Australian drinks business to Japanese brewer Asahi for £550m (€578m).

The sale of Schweppes Australia will complete the company’s exit from the drinks business after the spin-off of its US beverages arm Dr Pepper Snapple in May.

Cadbury dropped Schweppes from its name earlier this year to reflect the company’s new focus on chocolate, sweets and chewing gum.

The sale to Asahi is likely to go through by April next year, barring an intervention from Coca-Cola. The soft drinks giant has the right until next March to negotiate a potential acquisition of the Australian business under an agreement struck in 1999.

Schweppes Australia is the second largest non-alcoholic beverages business in the country and its portfolio consists of both owned and franchised brands, including Schweppes and Pepsi.

It has around 1,500 staff and generated revenues of £313m (€329m) last year.

Cadbury said last week its UK division continued to “grow well” despite the economic and consumer gloom, although it saw some softening of trading in North America.

Alongside Dairy Milk, its other main brands include Trident chewing gum and Halls cough sweets.