Cadbury Schweppes today announced plans to sell its Europe Beverages business to focus on its confectionery and other beverages business.
Cadbury said the sale process of the business, home to brands such as Orangina and Schweppes tonic water, was expected to start soon and it hoped initially to use the sale proceeds to cut its net debt, which stood at £4.3 billion at the end of June.
Recent reports have valued the Europe Beverages business at around £1 billion.
Cadbury said a review of Europe Beverages had concluded that the group's other businesses offered greater potential for higher growth and returns.
Europe Beverages posted underlying profit from operations of £116 million on revenues of £653 million in 2004, representing 11 per cent and 10 per cent of the group underlying profit and revenues.