PepsiCo eyes Cadbury Schweppes drinks sale

Soft drinks giant PepsiCo is thought to have asked Cadbury Schweppes for information on the sale of its European soft drinks arm, according to a report in the UK's Financial Times.

Julian Lakin, analyst at Pereire Tod, recently told BeverageDaily.com that PepsiCo was a possible buyer for the Cadbury drinks division, including Orangina, Oasis and Schweppes brands.

Lakin said another possibility was a break-up of the division, with PepsiCo potentially looking to pick of certain brands to supplement its growing portfolio. Orangina, for instance, holds a fairly unique position by straddling both carbonated and non-carbonated sectors.

More clues to Pepsi's intentions may arise from its nine-month results statement, expected on 29 September.

Private equity has appeared a more likely suitor for the troubled Cadbury Schweppes division in recent months, with two firms - Carlyle Group and Lion Capital - both rumoured to have shown interest.

A move from Pepsi's big rival, Coca-Cola, is highly unlikely as earlier negotiations to buy the same business were torpedoed by competition authorities.

For more details on the Cadbury Schweppes sale, see the original story on www.BeverageDaily.com.