LONDON, March 25 /PRNewswire-FirstCall/ — Cadbury Schweppes plc (NYSE: CSG; LSE: CBRY.L) announced today that its Snapple Beverage Group (“SBG”) subsidiary in the US has entered into an agreement to purchase Nantucket Allserve, Inc from Ocean Spray Cranberries, Inc and its minority shareholders for an undisclosed sum. Nantucket Nectars, a leading producer of premium high juice content drinks, reported net sales of US$59 million in 2001 and has a current net asset value of $12.1 million. The transaction includes the Nantucket Nectars trademark, shareholders’ equity and small retail and distribution businesses on Nantucket Island.
The acquisition of Nantucket Nectars will strengthen Snapple’s portfolio by adding high juice content and fresh juice premium products, enabling SBG to reach new consumer segments, and extending its distribution network in the US.
John Sunderland, CEO of Cadbury Schweppes, commented, “This acquisition supports our strategy of participating in the high-growth premium beverage market and broadens our portfolio of strong branded products.”
Founded in 1990 on Nantucket Island just off the coast of Massachusetts, Nantucket Nectars has strong brand equity with quality-conscious consumers. The Nantucket Nectars product line includes high quality juice cocktails, 100% juice products, not-from-concentrate squeezed nectars, an array of lemonades and special packs for mass merchandisers. Approximately 60% of sales are juice drinks.
The transaction, which is subject to regulatory approval, will be funded from Cadbury Schweppes’ existing debt facilities.
Cadbury Schweppes is a major international beverage and confectionery company. Employing over 38,000 people its products are available in almost 200 countries across the world. With well-known brands like Cadbury, Schweppes, Dr Pepper, 7 UP, Snapple, Mott’s, Orangina, Trebor and Bassett, Cadbury Schweppes is one of the top three soft drinks companies and one of the top four confectionery companies in the world.
Snapple Beverage Group
Snapple Beverage Group is a US premium beverage company whose brands include Snapple, Mistic, Orangina, Stewart’s and Yoo-hoo. Based in White Plains, New York, Snapple is the leading brand in the premium ready-to-drink tea and juice sector of the New Age beverage market, offering around 50 different flavours. Snapple’s popular array of all-natural (except diets) beverages contain no preservatives, no artificial flavourings and no chemical dyes.
SOURCE: Cadbury Schweppes plc