Gum boosts sales for Cadbury Schweppes in first quarter
New chewing gum launches helped lift Cadbury Schweppes's revenues for the first quarter by seven per cent.
In a trading update, Cadbury said the demerger of its drinks and confectionery businesses was on track. The group added it expected Cadbury shares to be listed on May 2nd, while Dr Pepper Snapple Group shares would be listed on May 7th.
Gum products saw double-digit growth during the three months to March, benefiting from the launch of three new Trident gum flavours.
In chocolate, Cadbury said it was "pleased" with Easter despite a much shorter selling season - although the decision not to take part in aggressive seasonal Easter discounting impacted the company's market share.
Although over the quarter commodity costs rose, Cadbury said it was able to offset the rises with a hike in prices.
A new advertising campaign, featuring a gorilla drumming to Phil Collins's track In the Air Tonight, also helped boost sales.
Todd Stitzer, Cadbury Schweppes chief executive, said: "We have had a strong start to the year in confectionery with revenues in the first quarter driven by excellent performances from our gum and emerging market businesses and higher pricing to recover increased commodity costs.
"While the economic outlook in 2008 is challenging, we are encouraged by the performances of our confectionery and Americas Beverages businesses and the continued progress being made on their separate strategic agendas."
Cadbury confirmed its previous guidance for both businesses.