Cadbury Schweppes And Coca-Cola In Joint Venture In Britain
LONDON (AP) _ Coca-Cola Co. and Cadbury Schweppes PLC, the chocolate, soft drinks and food manufacturer, signed an agreement Monday to bottle and distribute both companies’ soft drinks in Britain beginning in January.
Dominic Cadbury, chief executive of Cadbury Schweppes, estimated that the new company, Coca-Cola and Schweppes Beverages Ltd., would account for one- third of Britain’s carbonated soft drinks market with sales of 400 million pounds, about $568 million at current exchange rates.
The new company will begin operating Jan. 5, Cadbury said. Cadbury Schweppes will own 51 percent and Coca-Cola 49 percent of shares in the new company, he said.
Schweppes ended a 30-year alliance with Pepsi-Cola late last year to go over to Coca-Cola, saying it wanted to improve its profits from bottling after intense competition from large supermarket chains.
Pepsi-Cola estimates it has a 20 percent share of the British cola market, compared with Coca-Cola’s estimated 60 percent share.
Pepsi-Cola intensified the cola wars in October by taking a 10 percent interest in Britvic Corona, a new company formed by Britvic and whose owners include three British brewing giants: Bass, Allied-Lyons and Whitbread.
The brewing companies together will provide about 22,000 pub and club outlets for Pepsi-Coca’s five carbonated drinks.