Business is sweet for Cadbury Schweppes

CONFECTIONERY group Cadbury Schweppes today said it had made a good start to the year despite higher investment and costs. The company said its drinks and confectionery businesses had continued their sales momentum from last year.

Profit margins in the first half are expected to be broadly unchanged despite increased investment in growth and some above-inflation cost rises.

In an update ahead of the interim results in July, the company said its UK business had continued to benefit from innovations and the focus on its core brands, which include Cadbury, Maynards and Bassetts.

Cadbury has been increasing sales in the domestic market by integrating separate brands such as Caramel into its Dairy Milk range and introducing new products such as wafer-thin Cadbury Snaps and Flake Moments. As well as Dairy Milk, its chocolate brands include Roses, Flake, Crunchie, Double Decker, Picnic, Turkish Delight and Boost.

The group employs more than 50,000 people around the world, including about 7,000 at eight UK sites, such as its chocolate factory at Bournville in Birmingham.

Its confectionery businesses around the world were performing strongly, driven by market growth and market share gains, particularly in its gum and Halls businesses. In the US, its carbonated soft drinks business continued to perform well, led by Dr Pepper and its diet drinks range.

Chief executive Todd Stitzer said: 'For the full year, we continue to expect to deliver results within our goal ranges.'