LONDON — Cadbury Schweppes PLC has agreed to sell the international arm of its Royal Crown Cola business to Cott Corp. of Canada for 68.4 million pounds ($94.4 million).
The British soft drinks and candy maker, whose other beverage brands include Dr Pepper and Snapple, said Wednesday that the sale includes RC Cola’s operations in about 60 countries, with Israel and the Philippines the biggest markets. Cadbury is also selling a plant that makes RC Cola concentrate in Columbus, Ga.
“The decision to sell these businesses reflects Cadbury Schweppes’ strategy to operate higher growth potential businesses in our core markets,” said the company’s chief operating officer John Brock.
Cott, headquartered in Toronto, is known for making discount versions of soft drinks often sold under store brands or brands that are not heavily advertised.
The sale is to be completed by mid-July.
Cadbury is keeping RC Cola’s business in the United States, Canada, Mexico and Puerto Rico. Cadbury bought RC Cola in September as part of its $1.45 billion acquisition of Snapple Beverage Group.
Money from the sale will go toward repaying loans, Cadbury said.
Cadbury is the world’s third largest soft drinks company and the fourth largest candy producer. It employs some 36,000 people.
(Copyright 2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Get Adweek's Brand Marketing Daily Newsletter in your Inbox
Today's highs and lows of creativity