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Home , Apollinaris (water), Hollywood Chewing Gum, La Casera

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Fact File 2002/3 our brands

Cadbury Sch internationa confectioner loved brands worldwide. H our top sellin hweppes is a major al beverage and ry company, selling much s in over 200 countries Here we show some of ng brands. working together b to create people love brands e Working Together ’ origins go back over 200 a leading brand in the profitable and high growth In the Middle East we sell Cadbury branded years. Jacob Schweppe perfected his process for premium ready-to-drink tea and juice sector of products as well as Bim Bim in Egypt. In Africa we manufacturing mineral water in Geneva in 1783; the beverage market. have operations across the continent, although our John Cadbury first started selling tea and coffee main activity is focused in South Africa where we in 1824 in Birmingham. Cocoa and chocolate, Our Mexico Beverages business, whose major are number one in confectionery as well as owning initially incidental, became Cadbury’s main business brands include the Peñafiel water range and a foods and beverages business, Bromor Foods. within a few years. carbonated soft drinks brands and , will also join this regional unit from 2004. The two companies – Cadbury and Schweppes – merged in 1969 and since then we have expanded our business worldwide. The acquisition of Dr Pepper/Seven Up in 1995, our biggest step since the merger, transformed our opportunities European in beverages and made the Americas the most profitable region for us. In 2000 we extended americas e our position in this market further through the n bev rages acquisition of Snapple. We have developed our co fectionery chewing gum portfolio through the acquisition of Hollywood in France in 2000, Dandy, based in Denmark, in 2002 and, most recently, Adams, our biggest acquisition ever. Our key markets in this region are France, Spain gg q ygp We are combining our existing operations in and Germany, the largest soft drinks market in Organisation structure Canada, the US and Argentina with the Adams Europe. We sell carbonated soft drinks, mineral Cadbury Schweppes introduced a new, simpler confectionery companies in the Americas. 75% waters and still drinks and our principal brands organisation structure in February 2003, of Adams’ business comes from this region, with include Schweppes, , La Casera, designed to clarify accountability and enable Brazil and Mexico particularly important. In the Apollinaris, , TriNa and Pampryl. We have swifter decision-making. Five new regions are US the Cadbury, Peter Paul and York brands are bottling and partnership operations and license supported by five staff functions. The new global sold under licence. Cadbury Schweppes also our brands in other countries in this region. leadership team of ten key executives will report has manufacturing businesses in Canada and to the CEO to drive our growth and efficiency Argentina, and distribution operations in the US programmes as well as various integration and Mexico. Key Cadbury Schweppes brands sold programmes. in the region include Cadbury, Fry’s, Allan, Fuzzy Peach, , , Sharps, Stani, Beldent, Bazooka, Mantecol and . Asia c Ameri as Europe, pacific beverages middle east

and africa We have confectionery businesses in Australia, New Zealand, Malaysia, Indonesia and China and confectionery a food and beverages business in Australia, Our core beverages market is the US, the largest Schweppes Cottee’s. We are also adding India and soft drinks market in the world. As well as Pakistan to this region. Throughout this region we carbonated soft drinks we offer a broad portfolio Our major confectionery operation combines our sell Cadbury branded products, as well as Trebor of still drinks, juices and water. We are combining Great Britain & Ireland, European and the majority and Pascall sugar confectionery, and the Sportlife our Dr Pepper/Seven Up (DPSU), Mott’s and of our current Africa, India and Middle East chewing gum brand in China. In the Australian Snapple businesses into one new refreshment business units. Our largest market in this region is beverages market we sell a range of products beverages company. This will generate cost savings the UK, where we sell brands under the Cadbury, including carbonated soft drinks, fruit juices as well as opportunities for growing revenue as Trebor, Bassett’s, Fry’s, , Sharps, Barratt and fruit flavoured drinks, water and flavoured we broaden our distribution reach across our and Butterkist names. Our famous portfolio dairy beverages under brand names including combined portfolio. DPSU’s brands include includes the ‘moulded’ chocolate range (Cadbury’s Schweppes, Solo, Spring Valley and Wave. We Dr Pepper, , Schweppes, Canada Dry, A&W, Dairy Milk and its variants), TimeOut, , , are also licensed to distribute some of PepsiCo’s Hawaiian Punch, Squirt and Slush Puppie. Licensed , , Caramel, Cadbury’s Easter Egg brands: Pepsi, and Gatorade. products include , Country Time and range, Roses, Miniature , Eclairs, Trebor Welch’s. DPSU operates as a licensor, selling Softmints, Trebor 24-7, Bassett’s Liquorice Allsorts concentrate to bottling and distribution operations and Maynards Wine Gums. including Dr Pepper/Seven Up Bottling Group, an independent bottling company in which we have a In continental Europe our key confectionery brands 40% interest. include Poulain, Hollywood and La Pie Qui Chante in France, Wedel in Poland, Dulciora in Spain, Mott’s produces Mott’s apple sauce and juice Cadbury in Russia, across Europe, and the brands, Clamato, Hawaiian Punch and a variety chewing gums V6 in northern and western Europe of speciality products. Snapple Beverage Group and Dirol in eastern Europe. In Turkey we are the is a premium beverage company whose brands leading sugar confectionery company with Kent, include Snapple, Mistic, Stewart’s, Orangina, whose brands include Miss, Elegan and Jelibon and Yoo-Hoo and Nantucket Nectars. Snapple is Relax gum. Financial Highlights 2002 2001 % Sales £m 5,298 4,960 + 7 † Underlying Operating Profit* £m 1,041 992 + 5 Underlying Profit 935Before 886 + 6Tax*£m Underlying EPS*pence 32.0 30.0 + 7 Basic EPS pence 27.4 27.0 + 1 Dividends per share pence 11.5 11.0 + 5 *Excludes goodwill amortisation, major restructuring charges and disposal gains/losses † Includes associates Strategic development Acquisitions Our governing objective is growth in shareowner 2002 saw this programme continue with a series value. In pursuit of this, our strategy over the last six of acquisitions both in beverages and years has been to focus on developing robust and confectionery. In beverages we acquired Squirt in sustainable regional positions in the markets in Mexico, Nantucket Nectars in the US, consolidating which we operate. We have done this through our premium juice business, and purchased full organic growth and by acquisition, in order to control of our Apollinaris Schweppes joint venture broaden the markets in which we participate in Germany, Europe’s largest soft drinks market. and to widen our portfolio, so reducing our dependence on carbonated beverages and In confectionery we bought out most of the chocolate. minority shareholders in Cadbury India, one of our key developing markets. We acquired Kent, Turkey’s Robust and sustainable leading sugar confectionery business and a major Six years ago our beverage business had 77% of its part of our expanding European confectionery sales in carbonated beverages and operated on a business. And in Denmark we bought Dandy, global basis. Today our refreshment beverages consolidating our position as number two in the portfolio ranges from still drinks, juices and water overall European chewing gum market. to carbonated, with the latter now only representing 56% of that total. Today we operate The total spent on these and other value creating in three main geographies – North America, acquisitions during the year amounted to Europe and Australia. And in most of these markets £628 million. Finally, we made a successful offer to we have pushed our market shares close to 20%. purchase the Adams confectionery business, which We are still number three, but a much stronger will make us the world’s leading confectionery number three than we were six years ago, with a company. strengthened route to market. 2002 overview In confectionery, we have evolved from a reliance 2002 was another good year for Cadbury on chocolate to one where we will have a full Schweppes. Once again we exceeded our financial range of confectionery products encompassing targets for both underlying earnings growth and chocolate, sugar, medicated and functional generation of free cash flow. At constant exchange confectionery and chewing gum. Following the rates underlying earnings rose 11% and free cash acquisition of Adams, Cadbury Schweppes flow was £315 million. A highlight of the year was will be a global operator in a very strong the strong growth of our core confectionery competitive position with huge potential to operations, benefiting from recent years’ high cross-sell our different portfolios in a great variety levels of investment in growth and efficiency of markets. projects. Key acquisitions and disposals

Since the mid 1980s Cadbury Schweppes has expanded throughout the world by a programme of acquisitions and disposals to allow us to concentrate on core brands in the confectionery and soft drinks markets. 1986 Streamlined our strategic focus on soft drinks and confectionery with the sale of Typhoo Tea, Kenco Coffee and Jeyes cleaning fluid. Acquired Canada Dry and the rights to the Sunkist soft drinks brand. (Sunkist is a registered trademark of Sunkist Growers Inc.) o 1987 Coca-Cola & Schweppes Beverages joint venture acquisition f adams created within Great Britain. Red Tulip confectionery brand acquired in Australia. 1988 Chocolat Poulain acquired in France. Licensed our Adams transforms the scale of our confectionery and sugar free gum in the world. The US confectionery brands in the US. business, making us leader of the $100 billion accounts for a third of its $861 million sales. 1989 Acquisition of Crush International. Bassett's and global confectionery market, leader of the fast It has been growing at 15% per annum during Trebor in the UK bought and merged together in 1990, growing $10 billion ‘functional’ confectionery 2000 and 2001. our first major development in sugar confectionery. market and a strong number two in the gum • is the leading intense-flavoured In Spain, we acquired Chocolates Hueso and the TriNaranjus soft drinks brand. market. Combined, Cadbury Schweppes and chewing gum, growing at 18% per annum 1990 Acquired Oasis soft drinks brand in Adams will be the only global player able to meet during 2000 and 2001, mainly in North America. France. the full range of consumers’ confectionery desires • The ‘Bubbas’ range is particularly strong in Latin 1992 In Mexico, we acquired mineral water – chocolate, sugar and gum. America. gum is the world’s top Aguas Minerales. bubblegum brand. 1993 A&W root beer and North, Central and South America constitute 75% soft drinks acquired in the of Adams’ sales. Developing markets, principally Value creation US and an 80% share in Latin America but also Europe, Africa, the Middle By improving underlying trends in the base confectionery firm Stani in Argentina. Began the East and Asia, are also represented. This strongly business, extracting cost reduction synergies and construction of chocolate complements our leading confectionery businesses growing incremental sales through the cross factories in China and Poland. in the Commonwealth and Europe. selling of our respective portfolios where each has 1994 Strengthened our European the strongest route to market, we will be earning confectionery position with the acquisition of Bouquet Growth a positive return on the capital invested in this d'Or in France and Dulciora in Spain. Four brands account for over 70% of Adams’ sales: acquisition by 2006. We have chosen to fund the 1995 Acquired Dr Pepper/Seven Up in the US for $1.7 billion, becoming number three in the world’s • , the leading global sugar confectionery acquisition through debt financing. The strongly most important soft drinks market. Acquired Allan brand, is also the number one medicated cash generative qualities of our business and ability Candy sugar confectionery in Canada and merged confectionery brand with retail sales of nearly to pay down this debt relatively quickly make this it with our existing Trebor operations. Began $700 million. the most effective method of enhancing value for construction of chocolate confectionery plant in • is currently the best selling chewing gum our shareowners. Russia. Sold our computer services subsidiary, ITnet. 1996 Acquired chocolate firm Neilson Cadbury in Canada and sugar confectionery company Craven Keiller in the UK. 1997 Sold our 51% interest in Coca-Cola & Schweppes Beverages in the UK for £622.5 million. Acquired Jaret, a US confectionery distributor. Achieved market leadership in Egypt, the Middle East and North Africa with the acquisition of Bim Bim, Egypt’s largest confectionery company. Acquired French sugar confectionery firm La Pie Qui Chante. 1998 Formed The American Bottling Company after acquiring two leading independent bottlers in the US through a partnership, strengthening our route to market in the US. 1999 Sold our soft drinks brands in over 160 countries for nearly $1 billion, retaining a number three presence in the US, the world's largest soft drinks market, and also beverage operations in Europe and Australia. 2002 Turnover and Operating Profit Analysis % change Acquired Wedel, Poland’s leading chocolate confectionery brand, and Hawaiian Punch, the US’s At constant leading fruit punch brand. Acquired the Dr Pepper 2002 2001 As exchange Bottling Company of Texas, later forming the £m £m reported rates Dr Pepper/Seven Up Bottling Group, in which we Turnover Turnover 5,298 4,960 7% 10% have a 40% interest. 7 Operating Profit* 983 930 6% 9% 2000 In the US we acquired leading premium 6 beverages company Snapple Beverage Group for 5 $1.45 billion, and also fruit juice brand Mauna La’i. 4 In France we acquired the Hollywood chewing gum and 3 Turnover Operating Profit* candy business. Acquired chewing gum firm Wuxi Leaf 1 2002 2001 2002 2001 in China and Lion Nathan bottling operations in Australia. 2 £m £m £m £m 2001 Acquired Orangina in France and La Casera in 1 North America Beverages 1,811 1,757 548 541 Spain, achieving number two position in both soft drinks markets. In North America we acquired the Operating Profit* 2 Europe Beverages 717 515 140 91 frozen, non-carbonated beverages firm, the Slush (excluding Central 3 Europe Confectionery 1,546 1,445 247 212 Puppie Corporation, and Carteret, a contract packer, and Other) 4 Americas Confectionery 252 312 20 44 mainly of Snapple. In Australia we acquired the Spring 6 Valley juice and Wave flavoured milk brands. Also 4 5 5 Asia Pacific 642 625 99 109 acquired confectionery brand Mantecol in Argentina 3 6 Africa, India and Middle East 320 297 44 34 and Earth, a New Zealand health food company. 5,288 4,951 1,098 1,031 Sold Royal Crown (RC) Cola International and its private label concentrate supply agreement. 2 7 Central and Other 10 9 (115) (101) 1 5,298 4,960 983 930

This reflects our regional structure in 2002 *Excluding major restructuring costs and goodwill amortisation

Corporate social responsibility Businesses do not operate in a vacuum; they have conduct our business in today’s world. It says who wider obligations. Just as we recognise the we are and spells out our core purpose, our 2002 Took our holding in Cadbury India Ltd to over primacy of our shareowners, so are we conscious governing objective, our financial targets, our 94%. Acquired 65% equity interest in Kent, Turkey’s of our responsibilities to our other stakeholders. strategy, our management process, our obligations leading sugar confectionery firm, and purchased soft Corporate social responsibility has always been a to all our stakeholders and our values and drinks brand Squirt in Mexico, a market second only to the US in size. In the US we acquired Nantucket core part of our business philosophy. Our challenge behaviours. Nectars, a leading producer of premium high juice is to show that growth in economic value for our content drinks. Built up chewing gum portfolio with shareowners is compatible with an increased Whatever the challenge – eradicating harmful acquisition of Dandy's branded chewing gum business accountability for social and environmental working practices in the cocoa-growing industry in Denmark, with the Stimorol, V6 and Dirol brands, performance. To meet this, we are actively and providing agri-guidance and improving making us number two in European chewing gum. Acquired full ownership of Apollinaris & Schweppes implementing policies and processes that clearly community infrastructure in the cocoa-growing joint venture in Germany. And in December we align business growth with a strong sense of our industry; or working with governments and other announced our proposed $4.2 billion acquisition of obligations to society. interested bodies to recognise the importance of Adams Confectionery, making us number one in global education and information in promoting a healthy confectionery, leader in functional confectionery and number two in chewing gum. Our purpose and values lifestyle and sensible diets in combating the The Cadbury Schweppes’ Statement of Purpose growing tendency to obesity – all these can be and Values provides the operating framework for addressed in the knowledge that they will be our strategic intent and the manner in which we applied within a clear set of operating guidelines. Directors

Derek Bonham John Sunderland Todd Stitzer

For more information please visit our website: Financial Calendar www.cadburyschweppes.com Final Dividend for 2002 Interim Dividend for 2003 Ordinary shares Announcement of results 12 February 2003 23 July 2003 Ex-dividend date 23 April 2003 17 Sept 2003 Record date 25 April 2003 19 Sept 2003 Dividend payment 23 May 2003 17 October 2003 The Annual General Meeting of the Company is on 8 May 2003.

Derek C Bonham Dr Wolfgang C G Berndt Chairman (until 8th May 2003) Non-Executive Cadbury Schweppes’ good practice in corporate social responsibility is recognised by our John M Sunderland Richard S Braddock continued inclusion in both the FTSE4Good and Chief Executive Officer Non-Executive the Dow Jones Sustainability indices. In 2003 (Chairman from 8th May 2003) we are launching a programme of ‘Growing Roger M Carr Community Value around the World’ and are H Todd Stitzer Senior Independent Non-Executive members of the UK’s Business in the Community Deputy Chief Executive Officer (Deputy Chairman from 8th May 2003) PerCent Club, contributing over 2% of UK pre-tax (Chief Executive Officer from 8th May 2003) profits to the community. David A R Thompson David J Kappler Non-Executive Cadbury Schweppes plc Chief Financial Officer 25 Berkeley Square Baroness Wilcox London W1J 6HB Robert J Stack Non-Executive Chief Human Resources Officer Telephone: +44 20 7409 1313 Fax: +44 20 7830 5200 Group Secretary and Chief Legal Officer: www.cadburyschweppes.com Michael A C Clark

Produced by Corporate Communications. Designed by Addison Corporate Marketing Limited. Photography: Chris Knaggs (product) and Marcus Lyon (directors). Typeset by Asset Graphics. Printed by The Westerham Press. March 2003. Cadbury Schweppes’ commitment to environmental issues has been reflected in the production of this Fact File brochure. The paper used has Nordic Swan environmental accreditation. The inks are all soya based (except for the gold metallic ink on the front cover).