Cadbury and Schweppes are two prominent and long-established companies. Cadbury was founded in 1824 and is the world’s largest confectionary company. The bulk of Cadbury’s sales come from Europe, with a substantially smaller presence in the Americas. Schweppes was founded in 1783, when its founder Jacob Schweppes invented a system to carbonate mineral water. Today, its brands include 7-Up, Dr. Pepper, Sunkist, Snapple, Schweppes, and Motts Juice. Cadbury and Schweppes merged in 1969. In 2007, the firm’s market value was approximately £12–13 billion (British pounds). In March of 2007, CEO Todd Stitzer announced a plan to split the candy and beverage operations.

Working in teams, prepare a brief PowerPoint presentation to address the following questions. You will need to consult the company’s Web site (http://www.cadburyschweppes.com/EN) as well as conduct an article search to collect the information and data required to answer the questions. Your presentation should include one page for each of the following questions:

1. What precipitated Stitzer’s announcement to separate the beverage and candy operations?

2. What were the main factors hindering the success of the Cadbury Schweppes merger?

3. What are the pros and cons of divesting the beverage segment?

4. What are the different options Stitzer can pursue to divest Schweppes?