CADBURY

Cadury: Corporate Governance and Disclosure Policy

Table of Contents

Introduction3

Major Acquisitions and divestements4

Cross Border Policy5

Social responbility Report6

Financial Performance And Divident Policy8

Coporate Social Policy12

Corporate Governance16

The Governance Issues18

Conclusion23

References25

Cadury: Corporate Governance and Disclosure Policy

Introduction

The origins of Cadbury Schweppes go back over 200 years to when Jacob Schweppe perfected a process for manufacturing mineral water in 1783. In 1824, John Cadbury started selling tea and coffee in 1824 in Birmingham. A few years later, cocoa and chocolate became Cadbury's main business. The companies Cadbury and Schweppes merged in 1969 and started to expand their business worldwide. Cadbury Schweppes' strategy in the last six years is to develop more robust and sustainable regional positions within the markets that they operate in. Moving their dependence away from their strong position within the carbonated beverages and chocolate markets, Cadbury Schweppes have through organic growth and acquisitions broadened the markets that they participate in to widen their portfolio. (www.ftse.com)

Cadbury Schweppes PLC supplies branded beverages and confectionery. It manufactures the Cadbury chocolate brand, as well as supplying the Maynards, Trebor and Bassett sugar confectionery brands. Other confectionery subsidiaries include Monkhill Confectionery, which supplies sugar and chocolate products, including the Jameson's brand. The group's interests in the confectionery market are usually ascribed to Cadbury Trebor Bassett.

Major Acquisitions and divestements

Cadbury Schweppes has been expanding its portfolio of products and strengthening its position in the industry by acquiring assets or organizations. Cadbury Schweppes purchased a further 30% stake in Kent, its Turkish confectionery business, taking its stake to 95% in April 2006. The company acquired Dan Products, South Africa's leading chewing gum business in June 2006. The company acquired Southeast-Atlantic Beverage, the second largest independent bottler in the US in July 2007. Further, Cadbury Schweppes acquired Intergum, the leading Turkish gum business. Intergum had a 46% share of the Turkish gum market in September 2007. Acquisitions such as these would expand the company's reach into existing and new markets. Demerger of Americas beverages business The company completed the demerger of its Americas beverages business in May 2008. (www.Cadburyinvestors.com) Following completion of the demerger, Cadbury would be the new holding company of the confectionery business with its primary listing on the London Stock Exchange. Cadbury would comprise the worldwide confectionery operations and the Australian beverages business. Dr Pepper Snapple Group (DPS) would be the new holding company of the Americas Beverages business and will be listed on the New York Stock Exchange. DPS would comprise the entire Americas Beverages business, including its operations in the US, Canada, Mexico and the Caribbean. The separation of the confectionery and Americas beverages businesses would enable each company to focus on their own commercial and strategic priorities. Also, the separation would enable each company to allocate its capital more efficiently. (Gugler 2001 pp.56-67)

Cross Border Policy

The involvement of Cadbury Schweppes in the international market has proved to be successful. From being an unsuccessful small-scale company in the 1970s, it has established a foothold in the global market ranking third in the soft drink business and topping the non-cola producers. This resulted from the company's successful two-fold penetration of the American market. First, large companies have been given licenses to produce ...