A New Future for Cadbury Schweppes

Separating the candy and drinks divisions is supposed to allow them to sharpen their focus on rivals such as Coke and Wrigley, but big challenges await

The moment was almost a year in the making. On Apr. 11, shareholders of Cadbury Schweppes (CSG), the world's largest candymaker and one of the top sellers of beverages, finally voted to spin off the company's U.S. drinks division. Separating candy from drinks theoretically will boost shareholder value and allow the two halves of the company to sharpen their competitive focus on rivals such as Coca-Cola (KO), Pepsi (PEP), Nestlé (NESN.BE), Hershey's (HSY), and Mars.

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