Confectionary and beverages group Cadbury Schweppes said yesterday it would dig further into its $3 billion liquidity to fund more acquisitions after confirming that it had bought Snapple Beverage Group, the US soft drinks company, for $1.45 billion.

"Our strategic aim is simple," said Mr John Sunderland, Cadbury Schweppes' chief executive. "We aim to build sustainable regional businesses through organic growth and acquisitions. The US has been our biggest market with Mott's and 7Up, the company's existing soft drinks companies."

Cadbury Schweppes is now focusing its expansion on the beverages business in the US, Europe, and Australia, after disposing of its brands in 160 markets in 1999.

Mr Sunderland vowed not to repeat the disastrous experience of US porridge company Quaker, which bought Snapple in 1994 and sold it three years later at a heavy loss. The purchase price for Snapple represented a multiple of 12 times the firm's forecast earnings before interest, tax, depreciation and amortisation for 2000.