Cadbury-Schwepps CEO Todd Stitzer said Tuesday that he expects 2008 to be a good year the company’s soon-to-be spun-off beverage division.
In an interview with Cantos.com, Stitzer said Cadbury beverages in the U.S. “performed well in tough conditions” in 2007, and he expects an improvement in the division’s profit margins in 2008. Stitzer blamed 2007’s weak beverage profit margins on the bottlers the company purchased, starting in the middle of 2006. But those newly-acquired assets will give Cadbury-Scwepps products a clear route to the marketplace, Stitzer said.
Stitzer said he expects the Dr. Pepper Snapple Group – which is slated to be spun off in the second quarter of FY 2008 – to improve its revenues by 3-5 percent this year.
Stitzer added that Cadbury-Schwepps has tried to bring Snapple back to its “made from the best stuff on earth” roots, and that the company has appropriately increased the price of its products to compensate for rising commodity costs.