SINCE 1921SINCE January 2003 BUSINESS NEWS THE MANUFACTURING CONFECTIONER — The Business Magazine of the Global Sweet Goods Industry

Cadbury Schweppes to acquire Adams from Pfizer “In spite of the cost of Schweppes has reached an agree- Within the and gum sectors of the living, it’s still popular.” ment to acquire the businesses and assets market, Adams’ products are particularly Kathleen Norris of the Adams division from Pfizer Inc. focused on functional products. Its mar- author for a cash consideration of US$4.2 billion ket position is supported by strong & which includes a US$450 million value for and technical capabilities. expected tax benefits. The net considera- Adams’ brands include four power tion of US$3.75 billion represents a mul- brands — , , /Dentyne tiple of 2.0 times 2001 sales and 12.8 times Ice and the Bubba line — as well as a range 2001 underlying . of established regional and local brands — The acquisition comprises the principal , and Certs. Over 70 percent brands, together with other functional con- of Adams’ sales are accounted for by these fectionery products, manufacturing facil- four brands. ities and international sales, distribution In total Adams has 22 factories in 19 and support networks. countries, 11,586 permanent employees and a further 2,844 temporary employees spread Adams Overview across 40 countries. Adams has one cen- Adams had 2001 net sales of US$1.9 bil- tral and 10 local/regional & facilities. lion in 70 countries. In 2001, Adams had Adams has market presence and opera- a 3.3 percent share of the total global retail tions in North, Central and South Amer- confectionery market and within this ica which accounted for 75 percent of sales 25.5 percent of the retail market for func- in 2001. Adams is also represented in tional confectionery. Europe, Africa, the Middle East and Asia. (continued on page 8)

Cadbury Schweppes/Adams and global markets Source: company and Euromonitor Cadbury Schweppes sales and profits 2001 Cadbury Schweppes net debt (£ billion) (£ million)

£6,173 £4.0 Net Sales Companies in the News £4,960 £3.0 Adams ...... 7 £2.0 Profit £741 CS/Adams Ahold ...... 14 Before Cadbury Schweppes £1.0 Allen Foods, Inc...... 14 Tax £813 £0.0 CSM ...... 12 2002 2001 2000 1999 1998 Cadbury Schweppes ...... 7, 14 World confectionery market share 2001 (%) World chewing gum market share 2001 (%) Carmit Candy Industries Ltd. . . . 14 CS/Adams 9.7% Halben Food Manufacturing . . . . 14 Wrigley 30.6% Mars 9.4% Just Born, Inc...... 15 Nestlé 9.0% CS/Adams 25.9% Melster Candies ...... 18 Hershey 6.4% Lotte 7.3% Pfizer Inc...... 7 Kraft 5.3% Joseph Schmidt Confections . . . 15 Wrigley 3.8% Perfetti 3.7% Perfetti 1.9% U.S. Foodservice ...... 14 Hershey Lotte 1.7% 2.9% The Warrell Corporation ...... 18 ➤

The Manufacturing Confectioner • January 2003 7