Cadbury Swot Analysis

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Cadbury Swot Analysis

By | November 2005
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SWOT analysis for Cadburys Trebor Bassett

Strengths

Strong leadership position in confectionary markets
Exceptional performance by Adams in the US
Sale of Cadburys Schwepps European drinks business

Weaknesses

Opportunities
New product launches
Robust organizational changes driving performance
Growth in the UK confectionery market.
Purchase of Green and Blacks

Threats
Growing Health Concerns
Retailer Pressure

Strengths
Strong Leadership position in confectionery markets
Cadbury has a 9.2% share of the global confectionary market, driven by strong positions in several regional markets. The global category leader - Mars - has only a marginally higher share of the market at 9.9%. Cadbury has number one or number two market share positions in 23 of the top 50 confectionery product markets, including gum, chocolate and sugar. In the US, Cadbury Schweppes' presence is limited to sugar and gum, with a strong leadership position in the latter. In the US gum market, it has competition only in the form of Wrigley's. In 2004, the company was able to further enhance its share of the US gum market by 0.4%. Exceptional performance by Adams in the US Source: Datamonitor

Excellent Performance of Adams
In March 2003, Cadbury Schweppes acquired Adams from Pfizer for $4.2 billion. Adams is a branded global confectionary manufacturer of gum and medicated sweets that has reinforced Cadbury's confectionary position, particularly in the US. The acquired business was evidence of Cadbury's strong acquisition strategy as Adams was able to deliver significant cost synergies and has begun to deliver revenue synergies. The company has a significant market position in the growing US chewing gum market, driven by a strong 7-8% sugar-free brand growth. Source: Datamonitor

Sale of Cadbury's European Drinks Division
In November 2005 Cadbury sold its struggling European Drinks Division to Blackstone Group and Lion Capital for a reported £1.27 billion, this is...

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