Our Strengths
The global confectionery market is an attractive and growing market. Cadbury leads this market with unrivalled strength and breadth of participation.
The global confectionery market is attractive and growing:
- it is large: $150bn (the fourth largest packaged food market);
- it is growing: 5% CAGR 2004 – 2008
- developed markets: 3% CAGR driven by premium and
wellness, - developing markets: 10% CAGR driven by wealth and
population growth; - it is stable and profitable, and
- it has high level of impulse sales and low private label
presence.
We have unrivalled strength and breadth of participation:
- 10% market share;
- number one and number two positions in over 20 of the world's 50 largest confectionery markets;
- a strong presence in faster growing categories, with gum accounting for around one-third of total revenues;
- the most broadly spread emerging markets presence, accounting for around one-third of total revenues; and
- strong brands and competitive positions in all three categories of chocolate, gum and candy.
We believe we have significant under-exploited potential in top-line growth, margins and returns.
Our goal is to grow organic revenue by between 4% and 6% every year driven by the combination of our strong market position and underlying growth dynamics of our markets.
We are also focused on delivering a step change in margins from around 10% currently to mid-teens by 2011 through a major reconfiguration of our business model.
Our performance in 2008 is testament to the progress we are making:
- strong revenue growth, +7%;
- good growth across all categories;
- focus brands up 8%; Cadbury Dairy Milk up 11%, Trident up 11% and Halls up 9%;
- developed markets +4%;
- emerging markets +12%,
- underlying margins up 150 bps driven by Vision into Action cost reduction initiatives;
- reported margins up 180 bps to 11.9%
©2009 Cadbury plc