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Cadbury's taste for deals
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February 14, 2001: 9:48 a.m. ET
Confectionery and drinks maker posts upbeat earnings, says deals lie ahead
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LONDON (CNN) - Cadbury Schweppes expects to ink more deals in the confectionery and beverage industries, the British firm said on Wednesday.
The world's third-largest soft drink firm said that despite the slowdown in the growth rate of the U.S. economy, it expected 2001 to be another good year.
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It added it plans "to participate further in the consolidation opportunities that will arise."
The maker of Dr Pepper and Cadbury Creme Eggs has recently been adding to its array of brands, buying U.S. drinks brands Snapple and Slush Puppie and French candy brand Hollywood last year.
 Cadbury Schweppes reported a 15 percent increase in underlying profit. Income before tax, restructuring, goodwill amortisation and one-off gains for the year ended December 31 rose to £792 million ($1.15 billion)
Analysts polled by Reuters had forecast profits in the range of £755 million to £775 million.
Cadbury chief executive John Sunderland told CNN he didn't expect slower economic growth in the U.S. this year to hurt the company.
"The majority of our products are relatively recession-proof," he said.
Revenue increased to £4.58 billion from £4.23 billion in 1999.
Cadbury said its Dr Pepper and 7 Up performance was hit by "unusual market and competitive conditions in December," while sales volumes increased just 1 percent in a flat market.
Sales volume growth in its confectionery business was hit by a sluggish performance in the U.K. market.
Sunderland told CNN Cadbury is trying to open up new distribution channels for its confectionery business in Britain to boost sales.
He was upbeat on its continuing discussions with France's Pernod Ricard on the purchase of fizzy drink Orangina.
"I suspect in due course they will reach a fruitful conclusion," Sunderland said of the talks, which began in September. Pernod had previously failed to sell Orangina to Coca-Cola Co. (KO: Research, Estimates) after European regulators canned the deal.
 Cadbury (CBRY) shares bucked a falling market to rise 3 percent to 471.50 pence in afternoon London trade.
"After an abnormal December, we believe normal growth will be restored in 2001 in U.S. soft drinks and we are optimistic for achieving growth in UK confectionery. We sit here very confident," finance director David Kappler told Reuters.
Kappler said Cadbury had spent £1.5 billion in 2000 on acquisitions and now had debt of £1.2 billion, borrowings it would be prepared to double if the right acquisition came along. 
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