Page 4: Researching the market
Some basic facts about the US carbonated beverage market, based on data available at the time the tender offer was announced, are contained in the table.
In 1993 Cadbury Schweppes had a 4.9 per cent share of the US market, whilst Dr Pepper/ Seven-Up had 11.4 per cent. Combining these would produce a significant share of the market (16.3 per cent). It should be remembered that a 16.3 per cent share of the world's largest market would be a considerable boost to Cadbury Schweppes, providing it with an increase in i
ts global volume of over 75 and, more importantly, leadership in the non-cola segment in the US.
Other benefits of combining the two companies would be economics of scale in selling, purchasing, marketing and administration as well as enhanced marketplace opportunities in
- End of aisle displays
- Supplying soft drinks to restaurants, fast food chains and other outlets
- Food service
- Combined brand promotion
- Opportunities to develop Dr Pepper internationally, as Cadbury Schweppes has a strong presence in Europe, Mexico, Australia etc.
- A larger pool of employees from which to draw for new initiatives in future.