Delicious divorce!
Over the next four years, the company aims to abridge its organisational structure for better execution of a focused commercial strategy. It was in March 2007, that Cadbury announced its plans to split Americas Beverages and confectionery, and of late confirmed that a ‘sale is the more likely expected as a outcome’. While showcasing tremendous confidence, the company believes that both the businesses have enough potential to operate in independent ways. On this cost reduction programme spanning 2007-2011, the estimated investment has been decided at $895 million, of which $99.4 million will be non-cash. Furthermore, the company has also restructured its confectionery business, with Britain, Ireland, the Middle East and Africa (BIMA) forming one part, while Americas, Asia Pacific and Europe (rest) representing the other.
Source: IIPM Editorial, 2006
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