In March 2003 the Group acquired the Adams business from Pfizer Inc. for £2.7 billion. Adams is a branded global confectionery manufacturer of gum and medicated sweets. The performance of the Adams business continues to exceed our expectations.
Key highlights in respect of Adams are as follows:
- Revenue growth ahead of the acquisition plan and its four power brands (Trident, Dentyne, Halls and Bassett's) growing at 13%.
- Adams margins have improved from 11% to 16%.
- Adams market share has grown in all its major markets.
- The business is now fully integrated into the Cadbury Schweppes business, following successful transfers from Pfizer IT systems in the US and Canada.
- Estimated returns are exceeding the cost of capital in 2005 - one year earlier than the acquisition model.
