Cadbury Schweppes in £1bn Snapple deal

Cadbury Schweppes chief executive John Sunderland announces the deal

UK confectionery and soft drinks giant Cadbury Schweppes has snapped up US soft drinks company Snapple for $1.45bn (£1.07bn).

The deal, announced on Monday morning, includes the Snapple, Mistic and Royal Crown cola brands.

Cadbury Schweppes has aggressive US expansion plans and the new acquisition will give it a major foothold in the fast-growing 'new age' beverage sector.

Cadbury Schweppes, which already owns the Dr Pepper, Seven Up and Mott's apple brands, plans to become a third force in US soft drinks, alongside Coca-Cola and PepsiCo.

Cadbury expansion

Chief executive John Sunderland says: "The acquisition of the Snapple Beverage Group will significantly expand Cadbury Schweppes' position in the US soft drinks market.

It meets our strategic criteria of building robust positions in existing markets and will be strongly value creating."

Snapple's earnings have grown for 11 quarters in succession. In the second quarter of this year, earnings went up 7% to $26m on sales of $209m

Last year Cadbury's Schweppes acquired Hawaiian Punch, a tropical drinks brand and said it was looking for similar acquisitions.

Snapple's current owners Triarc had been planning a share offering in Snapple and its other soft drink businesses.

Triarc bought the company from Quaker Oats in 1994 for $1.7bn.