Investment: Cadbury shows its power
The shares have risen by more than 40 per cent in the last year - outperforming the market by 25 per cent. They added a further 27p to 854p yesterday on the back of an 8 per cent rise in underlying first-half profits to pounds 254m despite a currency hit.
The City likes Mr Sunderland's "Managing for Value" initiative which commits the company to growing earnings by 10 per cent-plus a year, generating pounds 150m of free cash flow and doubling shareholder value over five years. Managers are being made more accountable as the business moves to a more performance-based culture.
The next step is to kick some of its US bottlers into line. Telling figures produced yesterday showed that though Cadbury's drinks brands have done well when distributed through the Coke system or through its American Bottling Company operation, formed earlier this year, they have underperformed badly in the independent sector.
Cadbury is now starting to get tough on the laggards and is introducing a more performance-based fee system. More acquisitions are likely in this sector as the market consolidates.
In sales terms Dr Pepper did well, increasing sales by 6 per cent in the first half, though Seven-Up continued to lose share to Coca-Cola's Sprite. The main worry is if Pepsi decides to roll out its Storm brand, which is currently on trial.
On ABN Amro's full-year forecasts of pounds 625m, the shares trade on a forward rating of 21. For a company expecting double-digit earnings growth that looks good value.
That's some guestlist! Stunning images show huge dynastic wedding between Ultra-Orthodox Jewish families which attracted 25,000 guests
'He was always smiling': Lee Rigby named as Woolwich victim
Emergency landing at Heathrow sparks further controversy over London airport capacity
Two bailed after arrest over Woolwich attack Twitter comments
Exclusive: Woolwich killings suspect Michael Adebolajo was inspired by cleric banned from UK after urging followers to behead enemies of Islam
- 1 Pope Francis: Being an atheist is alright as long as you do good
- 2 What, let gays get married? We must be bonkers
- 3 'Something passed underneath us, quite close': Airbus A320 has close encounter with UFO
- 4 Lord of the Sings: Sir Christopher Lee, 91, to release heavy metal album
- 5 Two bailed after arrest over Woolwich attack Twitter comments
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Nook is donating eReaders to volunteers at high-need schools and participating in exclusive events throughout the campaign.
Get the latest on The Evening Standard's campaign to get London's children reading.
Win anything from gadgets to five-star holidays on our competitions and offers page.