The British confectionery and beverages producer Cadbury Schweppes will undertake a radical programme of cost reduction and efficiency. This means closure of 15 per cent of its manufacturing sites worldwide and a reduction of 15 per cent of its employees between 2008 and 2011.

For this reorganisation the company has reserved an exceptional restructuring charge of approximately £450mn (€670mn). In addition, the programme will require incremental capital expenditure of around £200mn (€135mn) over the next three years.

Today and tomorrow Cadbury Schweppes presents its new confectionery strategy, following the separation of its confectionery and beverages business. The separated confectionery business will be renamed Cadbury while the non-core beverages operations (Americas Beverages) are going to be sold.

With revenues of nearly £5 billion, Cadbury will be the world's biggest confectionery company, operating in a large, growing and profitable market. “As a focused confectionery group, we believe Cadbury plc can generate strong revenue growth coupled with a significant improvement in margins and returns as we reduce complexity and focus our resources on fewer, bigger and more value creating initiatives”, a company statement reads.