Team 8 2/14/2020
Patrick O’Keefe
Mark Zorrilla
Elizabeth Walton
Ran Wang
Trenton Shore
Cadbury Schweppes Case Analysis
The confectionary industry is extremely global in nature, with most industry players
selling in dozens of countries. It is also highly fragmented, with no player controlling more than
10% of the entire confectionary market (Exhibit 6a). Locally, however, the chocolate and gum
markets were often dominated by only a few players. As an example, Wrigley dominated the gum
market in North America, while they lagged to a distant second place in the Asia Pacific market
(Exhibit 6b). As such, the confectionary business was a never-ending battle for global market
share. This required numerous key success factors, such as cost-efficient manufacturing
processes, continuous investment in R&D, maintenance of multiple distribution channels, and
spending a significant portion of sales on marketing efforts.
Most confection players had dozens of manufacturing facilities across the globe. As an
example, Nestle manufactured confectionary products in 41 different countries. It was
imperative that manufacturers keep costs low given they could not realize the synergies
associated with manufacturing all in one place. Gum, on the other hand, was relatively consistent
across the globe and thus presented enhanced economics. Investment in R&D was also an
extremely important KSF of the global confectionery industry. Consumer preferences were
