For Immediate Release 17 December 2002 CADBURY SCHWEPPES TO ACQUIRE ADAMS FROM PFIZER Cadbury Schweppes becomes joint No 1 in global confectionery, leader in sugar and functional confectionery and No 2 in chewing gum Summary • Cadbury Schweppes plc has agreed to buy Adams from Pfizer Inc for a total gross cash consideration of $4.2 billion (£2.7 billion), representing $3.75 billion (£2.4 billion) net for the base Adams business plus $450 million (£288 million) for tax benefits. This base valuation represents 2.0 times 2001 sales and 12.8 times 2001 underlying EBITDA. The deal will be debt financed and is expected to earn a positive return on capital in 2006 and enhance underlying earnings in 2004. Globally, Cadbury Schweppes will …show more content…
The three subsectors of sugarised gum, sugarfree gum and bubblegum, grew at average rates of 0.5%, 7% and 1% respectively over the same period. The faster growth of sugarfree gum reflects the grow th in demand for products with a functional benefit. Bubblegum products are mainly aimed at children and are showing faster rates of growth in developing markets where the child population is large and growing. The functional confectionery and g um sectors are highly attractive given: they are highly branded; the products are premium priced with consumers willing to pay for functionality and convenience; and improvements in functionality (based on R&D) are a key driver of demand. Adams’ Key Brands Four “power” brands account for over 70% of Adams’ sales – the Halls brand, the Trident and Dentyne gum brands and the “Bubbas” range of bubblegums. Among these key brands, Adams has the number one sugar confectionery brand in the world, the number one chewing gum brand, the number one sugarfree gum brand and the number one bubblegum brand. • Halls is the number 1 global sugar confectionery brand and has a significant lead over other major sugar brands. It is also the number one medicated confectionery brand with a 22% value share of the world market in 2001. Halls has strong positions in 24 markets around the world. In 2001, it accounted for 27% of Adams’ sales and during 2000 and 2001 showed compound average sales growth of 2.4% at constant exchange rates. The product
United Therapeutics is a medical company, which is focused on developing products that meet the unmet needs of different patients. Individuals with special or chronic cardiovascular diseases can benefit from the products offered by the company. The organization was founded in 1996 and has its main offices in Silver Springs. Some of the products include Remodulin, Adcirca, and Unituxin among others. Most of the products that are produced by United Therapeutics address severe cardiovascular needs
Allround has many advantages over its competition in the industry, including higher brand awareness, highest market share, lower fixed costs, and a relatively high conversion ratio. A market survey detailed in Exhibit 1.5 of the case shows that the Allround Brand has brand
There are many retail giants that have had an active presence on the market for sometime. A few that come to mind are JCPenny, Macy’s and Nordstorm’s. However, one major retail chain that has spread across the country was started right here in the state of Arkansas. Dillard’s first department store was opened in 1938 in Nashville, Arkansas by its founder William Dillard. Since its inauguration, Dillard’s has turned into one of the more prominent retailers in the United States. With an ever growing market base and clientele, Dillard’s has seen successful since the early 1950s. This success, however, leaves people with a few questions about the Arkansas native retail giant. What does Dillard’s current market look like? How does Dillard’s compare
Gum has been around for hundreds of years, even the Ancient Greeks had a substance similar to gum to chew on. Unlike ancient times, when gum was harvested from a type of plant, in the early 1900’s the synthetic gum we now know exploded into America. Since then gum has grown to become an imbedded part of American culture. You can buy gum practically anywhere that has a local gas station or supermarket. Gum has health benefits like oral hygiene and appetite suppressant, not to mentions countless delicious flavors and competing companies. Two of the largest companies, William Wrigley Company, creator of 5 Gum, and Stride another widely known company, gross hundreds of millions of dollars yearly. With so many options to gum chewers in the nation
The History of Walgreens started in 1901, with a medication store at the intersection of Bowen Ave and Cottage Grove in Chicago, possessed by Galesburg local Charles R. Walgreen, Sr. by 1913; Walgreens had developed to four stores on Chicago's South Side. It opened its fifth in 1915, and four more in 1916. By 1919, there were 20 stores in the chain. As an aftereffect of liquor disallowance, the 1920s was an effective time for Walgreens. At the time, liquor was unlawful. On the other hand, solution bourbon was accessible and sold by Walgreens.
Coles has experienced an average return for the industry and has continually performed well, however it has seen a slowing of growth as it compares to Woolworths which is stronger and a more aggressive major competitor. A UBS report, their view with Australian Supermarket Competitors in the year 2017-2018 sees an increase risk of a ‘Capex war’ and not in a price war, Coles will need to increase store refurbishment to compete in the market.
Hire purchase – hire purchase is a system where if Asda uses a certain equipment from another company, they must pay back the cost of this equipment in regular instalments. This could include the self-service kiosks that Asda has available in their stores.
atties Foods is a true Australian success story. Since opening our doors in 1966, we’ve grown from a small cake shop in regional Victoria into one of the country’s biggest bakeries. Today, Patties Foods proudly employs around 570 people and produces over 300 different sweet and savoury products. Each year our products are proudly sold through grocery and convenience stores as well as foodservice distributors who supply cafes, stadiums, caterers, schools, restaurants, hotels, clubs and even overseas markets.
Who would have thought a native Chicago pharmacist would be the founding father of a leading billion dollar pharmaceutical retailing business? In 1901, Charles R. Walgreen, Sr. purchased a local drugstore where he worked as a pharmacist and with his drive and energy had a vision to be an industry leader. (Walgreens Historical Highlights, 2015) By sheer determination and some very good ideas, Mr. Walgreen was able to expand in 1909 opening a second Walgreens location. (Walgreens Historical Highlights, 2015) One of his key successes was manufacturing his own line of drug products to ensure high quality and low prices. (Walgreens Historical Highlights 2015)
Kroger’s mission/vision statement is “Our mission is to be a leader in the distribution and merchandising of food, pharmacy, health, and personal care items, seasonal merchandise, and related products and services”. It seems as if Kroger wants to be on the top and will not settle for less. They want to dominate the areas that everyone needs which is, food, pharmacy, health, and items that we need. I feel as if this is a strong mission statement because of this. Kroger has a set of goals that they want to accomplish by the year 2020. The first goal it to source 100% of its wild-caught seafood from fisheries that are Marine Stewardship Council certified, in MSC full assessment, in comprehensive Fishery Improvement Projects or certified by other
The Hershey Company is the largest chocolate producer in the United States. They are a global producer of chocolate, confectionary sugar, candy, and other chocolate-related grocery items. Hershey was founded in 1894 by Milton Hershey (Key, 2015). In 1900, the company started producing milk chocolate in bar form, wafers, and other shapes. Since there was mass production, Mr. Hershey was the first American to develop a formula for manufacturing affordable chocolate. In 1907, the famous Hershey Kisses was hand wrapped and introduced. H.B. Reese was a former Hershey company employee, in 1923, he discovered the goodness of chocolate covered in peanut butter known today as Reese’s candy. Later in the 90’s, several more widely known candies were formed such as Krackle and Mr. Goodbar. In 1977, the famous Twizzlers licorice was acquired as part of Y&S Candies. Through all of Hershey history, it is still the leading manufacturer of quality chocolate (Our Heritage, n.d.). The entirety of Hershey's mission statement reads, "Continuing Milton Hershey's legacy of commitment to consumers, community and children, we provide high-quality HERSHEY's products while conducting our business in a socially responsible and environmentally sustainable manner". Hershey Company’s vision is to be “The world’s first choice for chocolate everywhere, every time.”
Recommendations: Although Adams has clear benefits should the acquisition go through and the Adams strengths would seemingly be a perfect fit for Cadbury Schweppes. I do not assess Cadbury, at this time to be in an ideal situation to acquire Adams. As well, Adams may not prove as lucrative an acquisition that it appears to be. The pros to the Adams acquisition are that CS would more than double its share of the global sugar confectionery market making it the largest sugar confectionery. The key effect would be that CS would then contest Wrigley’s global dominance. Moreover, the acquisition would allow Cadbury Schweppes to go to the front of the grid in the confectionery market. The acquisition would appear to be valuable to Cadbury Schweppes as Adams had higher sales than it in a number of important regions such as Latin America.
When the company began more than one hundred years ago, it was granted immediate success with its low-cost, high quality milk chocolate. Though one of Milton Hershey’s founding principles that has persisted over the years is to “make and sell a high-quality product at a fair price” (CSR Report 7), another threat Hershey contends with is changing consumer preference. “The company is experiencing changing consumer trends toward premium and trade-up product segments (SWOT 4).” In order to adapt to the changing marketplace, Hershey will have to continue to constantly develop, produce and market new products.
“Dark, earthy, natural, intense.” These four words can be used to describe almost any aspect of Pana Chocolate’s range of raw, organic, handmade chocolate bars. The brand, founded in Melbourne, offers a range of chocolates available in the health food section at supermarkets that appeal to a range of consumers needs, being ethically produced, raw, organic, dairy, soy, egg and refined sugar free, vegan, and made from all natural ingredients (Pana Chocolate, 2017). Priced at $7.95 on their website (http://www.panachocolate.com), they are on the higher-end scale of the standard chocolate market, however the product oozes luxury throughout and lives up to it’s higher price point. This report will focus on the marketing implications of the packaging design choices made by Pana Chocolate in regards to this range of products.
Andrews Corporation is a multimillion dollar company that was designed when the parent company was mandated by the SEC in a monopoly settlement. This action resulted in six smaller companies. Along with the other five companies when the government split a monopoly into identical competitors, Andrews manufactures and sells sensors in five diverse market segments. As a monopoly, operating inefficiencies and poor product offerings were not addressed because increasing costs could be passed onto customers. Secondly, mediocre products would sell because customers had no other choices. Although last year’s financial results were decent, it is now our job increase product sales, marketing strategies, efficient production, and proper financial management to achieve financial greatness.