Cadbury Schweppes plc has announced that, in connection with the proposed demerger of its American Beverages business to Dr Pepper Snapple Group, Inc., the US Securities and Exchange Commission (SEC) has declared DPSG's Form 10 Registration Statement effective. The document, which was revised and filed on 22 April, 2008 as the sixth filing of the Form 10 Registration Statement, is available on the SEC's website and will shortly be sent to shareowners. Once the scheme becomes effective, existing Cadbury Schweppes ordinary shares and ADRs will be cancelled and delisted to be replaced by Cadbury plc ordinary shares, Cadbury beverage shares and ADRs. It's expected that Cadbury ordinary shares and ADRs will begin trading on the London Stock Exchange under symbol "CBRY" and on the NYSE under symbol "CBY", respectively on 2 May 2008.

Graham Neale of GlaxoSmithKline Nutritional products and President of UNESDA – the Union of European Beverages Associations – looks at the key issues facing the industry. As President of UNESDA, I recently had the opportunity to host a meeting of CEOs from across our industry to discuss key challenges facing the sector and explore strategies to address them. This was the fifth CEO session, but the first under the new governance of UNESDA which now recognises equal membership rights for national associations and corporations. Meeting in Paris, the group spent time sharing ideas and experiences and discussing future initiatives with regard to consumer and corporate responsibility focused issues facing the non-alcoholic beverages sector. What struck me most was the constructive nature of the meeting, and how competitors within the sector can leave their respective corporate hats at the door and meet around a table to consider key political issues beyond products and brands, that concern us all. This is surely the mark of a responsible industry that recognises the benefits of working together on such matters as a strong and united sector. We were a group of just ten people, representing the corporate members of UNESDA – a group large enough to prompt discussion but small enough to take decisions. We had requested status summaries on the implementation of the UNESDA commitments and three other issues facing our industry as elaborated below. With strict instructions to keep to their allotted two minutes, experts from across the industry presented on the four different areas and then a debate on the topics ensued. Health, wellness, the UNESDA commitments and guideline daily amount labelling The first area we explored was that of health and wellness and the role that UNESDA and its member companies and associations were playing in recognising their requirement to act responsibly. In particular, UNESDA made a further commitment to the European Commission’s ‘Platform for Action on diet, physical activity and health’. The latest commitment involves the roll out of guideline daily amount (GDA) labelling among UNESDA members, the first entire sector to do so. Introducing GDA labelling across the sector represents a next step following our commitment to trial a scheme giving clear information to consumers about what they are buying. The rollout of GDA labelling is happening now – and will be independently monitored at the end of this year to verify compliance. Ingredients and proven science Our next area of focus was on the scientific and regulatory issues surrounding our business and in particular our need to ensure that proven science is used as the basis for any proposals relating to our sector. We are particularly concerned that ingredients used in our products that have been classified as safe by the European authorities, should not be undermined by questionnable science and irresponsible reporting. We discussed how we can provide assistance to regulatory authorities in upholding their decisions in order to give confidence to both consumers and industry and thereby avoid confusing consumers. A question of competitiveness The European Commission’s department for business, DG Enterprise, having created a High Level Group on competitiveness in the food and drink sector has requested that a CEO from UNESDA sit on that Group. As a highly innovative sector we discussed this issue of competitiveness within our sector and ensuring an environment where new product development is encouraged. UNESDA has now put forward one of its CEOs to sit on the Commission’s High Level Group. Environmental sustainability The fourth subject for discussion among the group was that of environmental sustainability. The issue of reduction of CO2 emissions and overall carbon footprint has moved up the world agenda very quickly in the past 12 months. The discussion is not limited to Europe, although the EU is seen as taking something of a lead, but is being driven globally, with the involvement of organisations such as the United Nations Framework Convention on Climate Change. The challenge for UNESDA of course is to recognise where our industry responsibility lies and to put in place strategies and actions to address this. Clearly the issue of packaging is high on the agenda and we discussed the need for sustainable packaging policies as well as effective systems for recovery and recycling. All of the opportunities discussed among the CEOs are now being fine tuned within the different UNESDA committees and will result in actions for the organisation over the future 12-18 months. The annual CEO forum represents a vital discussion forum for the industry. A chance to discuss the consumer and corporate responsibility related issues facing the sector and set a strategic vision for the UNESDA work programme for the years ahead.

*SunChips, Frito-Lay's popular line of multigrain snacks, is living up to its name by using solar energy to help make some of the snacks at its California-based manufacturing facility. * California Governor Arnold Schwarzenegger inaugurated the new solar field on Earth Day (22 April). The recently installed solar concentrator fields at the facility, one of seven locations where SunChips snacks are made in the US, will help drive the actual production of thousands of bags of 'solar-powered' SunChips daily. The solar field project is a result of a partnership with the California Energy Commission. “I commend Frito-Lay and the California Energy Commission for working hand in hand to build this innovative project,” Governor Schwarzenegger said. “The plant will harness the power of Central Valley sunshine to reduce its natural gas use, air pollution and greenhouse gas emissions, all while helping us meet our renewable energy goals.” “Frito-Lay is committed to utilising innovative programs and technologies that help minimise our impact on the environment,” said Leslie Starr Keating, senior vice president, operations, Frito-Lay North America. “By harnessing the power of the sun at our Modesto facility, we continue on our environmental journey and demonstrate that we can be positive stewards of our business and the planet.” The new five-acre solar concentrator field includes 54,000 square feet of concave mirrors designed to absorb sunlight. The solar energy captured by the 192 solar collectors will generate steam that helps heat the cooking oil used in the SunChips manufacturing process. By utilising steam in the manufacturing process, the facility will be able to significantly reduce its use of natural gas.

What at first appears to be a new glossy campaign for a premium mineral water brand turns out to be a screen ad by Amnesty International designed to shock viewers with the reality of an interrogation technique used in places such as Guantanamo Bay. The water glistens as it arcs through the air, the edgy electronic soundtrack creates a sense of anticipation, but then the film takes a disturbing twist as a man is being subjected to ‘waterboarding’, the controversial interrogation method used by US security service which involves partially drowning a prisoner by pouring water down their throat and nose. Amnesty and other human rights campaigners believe the method is a form of torture, but US authorities describe it as ‘enhanced interrogation’. The ad was the joint work of media agency Drugstore and film-makers Marc Hawker and Ishbel Whitaker of DarkFibre films, and features performance artist Jiva Parthipan.

**Cobra International Beverage Holdings (CIB Holdings), an energy drink maker listed in Germany on the Frankfurt Stock Exchange, is striking at Mexico’s vast beverage market. **CIB has developed a new brand called Viuda Negra (Black Widow), specifically designed to catch Mexican consumers in its web. The company is now seeking distributors for the drink. Although Mexico is the second biggest soft drinks market after the US, the energy sector is relatively undeveloped. “Mexico represents a market of over 200 million people that has not yet been saturated by the energy drink craze,” said CIB Chief Executive Marcelo Perez. “With the establishment of relationships with key distributors within the country, we hope to penetrate this market.” CIB’s core beverage Cobra is currently on sale in Canada, and is due to be introduced in the US this year. Powered by guarana, milk thistle, ginkgo biloba and ginseng, Cobra is produced in two flavours: Green Apple and Berry.

beverage innovation news editor Mike Ramey looks at how dynamic Canadian tycoon Bobby Genovese, Chairman and CEO of Clearly Canadian Brands and head of Barbados based BG Capital, has put the business back on track with new products, a strategic acquisition and a 'fly on the wall' TV show called Bobby G: Adventure Capitalist. “Alternative beverage” producer Clearly Canadian has reported its first significant revenue growth in a decade, after developing its food business. The Canadian group said sales jumped 213% to US$3.34 million in the last quarter of 2007, and were 48.9% up over the full year to $11.1 million. The rapid increase came from Clearly Canadian’s healthy snacks and organic baby food divisions, which were acquired in the first half of 2007. However, the group’s core beverage business continued to struggle, with 2007 sales down a further 25%. On 14 April, Clearly Canadian added another food brand to its portfolio, signing a letter of intent to acquire Baldwin Street Kosher – a quality line of hot dogs and sausages that sells at major supermarkets in the Toronto area, as well as sporting hubs such as the Air Canada Centre (ACC), home of the Toronto Maple Leafs ice hockey team. Bobby Genovese, Chairman and CEO of Clearly Canadian Brands, said: “We will use our resources to rapidly expand Baldwin Street’s revenues. We anticipate being able to pay for this acquisition out of cashflow generated from its operations. We continue to review many solid opportunities that have been presented to us.” Clearly Canadian was a pace-setting beverage company in the 1980s and ‘90s, but fell on hard times over the last decade. The business is now owned by Genovese, who is trying to get it back on track by developing Clearly Canadian into a diversified producer of healthy food and drinks. The entrepreneur initially appointed Brent Lokash, a young corporate lawyer, to run the company. However, Genovese has now taken personal control of the turnaround as Chairman and CEO, while Lokash is head of the beverage division as well as mergers and acquisitions. The INOV8 Beverage Co, led by former Snapple CEO Mike Weinstein and former Yoo-hoo/Orangina CEO Brian O’Byrne, has also been called in to develop new drinks under the Clearly Canadian brand. While Clearly Canadian’s bottom line for 2007 wasn't revealed (the company reported a $1.4 million loss in the third quarter), Genovese was bullish about future prospects: “Our beverage division has been challenged by the significant cost increases in shipping and delivering our product, which has affected many alternative beverage companies,” he said. “We've spent the last six months addressing this problem, and feel confident that, with the significant guidance of INOV8, we're now well positioned to significantly increase revenues in this division in 2008 and beyond.” Genovese – a dynamic Canadian tycoon whose BG Capital investment company is based in Barbados – is the focus of a 'fly on the wall' documentary series on cable TV in the US. The show, Bobby G: Adventure Capitalist, follows Genovese’s jetsetting progress around his five luxury homes and diverse business interests, which also include an underwater cemetery in Key Biscayne, Florida. Much of the drama revolves around Clearly Canadian. The camera gets in close as 'Bobby G', Lokash and other members of the team battle to reverse the fortunes of the iconic national brand. Genovese has been delighted by reactions to the show. “Not only have we had tremendous response from our very loyal brand customers, but numerous corporate opportunities have been presented,” he said. “Now that the business world more fully understands what we're looking to accomplish, and how we're positioning this company, the prospects have been numerous.”

UK-based Inside Out Beauty's Sip water is now available via home delivery service Ocado. Launched in May 2007 at Selfridges, Harvey Nichols and Fenwick nationwide (an unprecedented debut in all three top department stores), Sip's distribution net has widened over the past year to include Waitrose, EAT, Whole Food Market, Daylesford Organic and Fresh & Wild. Sip is also now available from Monoprix and Daily Monop in Paris and will go on counter at Superquinn across Ireland in May. Sip was developed by Kate Shapland, a weekly Telegraph columnist, and Kate Cazenove, co-founder of a business publishing company. Kate Shapland said: "Sip offers all the intrinsic beauty and health benefits of water but with the same purity and a moreish taste. It's a delicious alternative to water – a feelgood experience from start to finish." Sip includes skin-friendly botanicals sourced via an organic farm in Herefordshire, UK, and is bottled in the Black Country.

US based Well’s Dairy has unveiled several new products for the new ice cream season. Packed in the company’s award winning Blue Bunny elliptical premium ice cream container, Premium Mint Chocolate Chip is a traditional combination of cool mint ice cream and chocolate chips while Premium Neapolitan features three classic flavours combined into one: vanilla, chocolate and strawberry. The Champ! Strawberry includes a generous scoop of premium strawberry ice cream swirled with a strawberry ribbon and placed in a sugar cone and dipped in a sweet, strawberry flavoured coating. The new ice cream is packed in boxes of six cones. Well’s has also launched a new range of Doubles – milk chocolate covered stick products, each featuring two ice creams. Peanut Butter Cup includes rich chocolate ice cream surrounded by thick creamy peanut butter ice cream, Banana Split is banana ice cream surrounded by strawberry ice cream, while Smores includes creamy marshmallow ice cream surrounded by graham ice cream.

Australia is certainly spoilt for choice when it comes to food and drink. This year, Sensis – publishers of the country’s Yellow and White Pages telephone directories - is recognising local food and beverage heroes across the country on the covers of the latest editions of the phone books. Four of the 59 covers feature dairy farmers – including John and Sally Fairley who were nominated by members of their local community. Sixth generation dairy farmers John and Sally, through their Country Valley Boutique Dairy, have made a significant impact on the local dairy industry and the wider community. When their business was threatened following the deregulation of the dairy industry in July 2000, the Fairleys started bottling their own range of milk and created new products such as cheese, yogurts and cream. The Fairleys also support other small local dairy farmers by buying their milk at a premium price. John and Sally also offer many local community groups and schools the opportunity to raise funds by offering their mobile milkshake stall. The Fairleys donate milkshake makers, toppings, cups and milk so that community groups can take all the proceeds from milkshakes sold. Lynne Strong, a sixth generation dairy farmer and pharmacist, is another ‘cover girl’. Lynne runs Clover Hill Dairies and has earned local and state recognition for her tireless advocacy of the dairy industry. As one of the most productive dairy farms in Australia, Clover Hill Dairies regularly host a whole range of visitors – from school kids who watch milking demonstrations, to international delegates keen to see the strength of the Australian dairy industry. Passionately focussed on creating a sustainable future for the dairy industry, Lynne uses her extensive networks to promote ‘Picasso Cows’ and ‘Cows Create Careers’ – programmes encouraging students into farming and strengthening ties between the city and country. Long time Bega dairy farmer Ron Apps is respected within the local dairy industry for providing vital support to farmers suffering the worst effects of the drought. Ron and his family are one of the biggest milk suppliers in the region to Bega Cheese, successfully managing their two farms through the drought to produce 4.1 million litres of milk a year. Ron’s dedication to Bega Cheese has helped put Bega on the map as the dairy capital of Australia and one of the most popular tourist spots on the south coast of New South Wales.

Despite the removal of EU export refunds, an increasingly uncompetitive currency position and fluctuating market prices, the Irish Dairy Board reported a turnover of €2.1 million in 2007 – an increase of 2% over 2006. The Board’s Kerrygold brand grew by 1.8% in 2007. In Germany its brand performed well, maintaining growth of 0.5% and retaining its market leading position. Branded sales increased by 7% in the United States in 2007, with strong performances from Kerrygold Dubliner, butter and Cheddar. East European markets, including Poland, the Czech Republic, Hungary and Austria, performed well, with annual sales growth of 20%. In other international markets, sales were less impressive and higher prices particularly impacted on branded milk powder sales to African countries. The Irish Dairy Board’s Food Ingredients division saw sales increase in value in 2007, although the unprecedented price volatility of dairy commodities affected the product mix with a resulting drop in the cheese volumes produced.

The appointment of Graham Wilkinson demonstrates Arla’s commitment to build on its existing strong environmental performance, which has shown a reduction in total carbon emissions by over 29% from 2004 to 2007. The role of environmental agricultural manager will involve advising AFMP members on agricultural environmental emissions and countryside stewardship schemes in addition to representing Arla Foods UK on agricultural environmental issues as well as working with Arla Foods retail customers to drive environmental initiatives at farm level. Arla Foods energy usage in 2007 compared with 2006: 16% reduction in energy consumption 16% reduction in carbon dioxide emissions 22% reduction in water consumption 18% reduction in effluent volume 51% reduction in landfill waste 15% reduction in the use of fossil fuels. .

Thomas Kemper Soda Co, a Pacific Northwest classic for more than 25 years, is unveiling a new premium soda collection sweetened with natural cane sugar that delivers the rich, complex flavours long-time fans expect from the brand. Cane sugar is replacing high fructose corn syrup to better deliver on the brand’s commitment to flavor, quality and natural ingredients. Craft brewed in small batches, the new Thomas Kemper Cane Sugar Soda collection debuts this May in five favourite flavours, including the brand’s best selling Root Beer. Unique to Thomas Kemper is the use of pure Northwest honey, which lends a distinct natural sweetness, rich creaminess and smooth finish, complementing other natural ingredients such as Madagascar vanilla and Jamaican ginger. “Our switch to cane sugar was important to delivering the most flavourful, highest quality soda on the market without compromising on ingredients, ” said Bill Germano, President and CEO of Thomas Kemper Soda Co. “Our fans have high expectations, and we wanted to make absolutely sure we didn’t disappoint. ” * New packaging, new products* In addition to freshening up the formula, Thomas Kemper sodas are sporting a new look. Highlighting the classic iconography and using the instantly recognisable colour palate, Thomas Kemper bottle labels, six-packs and 12-pack cartons now have softer hues and simpler graphics. The refreshed packaging is part of an overall effort to update the Thomas Kemper brand, which also includes a redesigned and enhanced website that launched in April 2008. Hot on the heels of the 20 calories or less Thomas Kemper Low Calorie Soda collection introduction earlier this year (and featured in the April issue of beverage innovation magazine), the Cane Sugar Soda collection is part of the company’s larger effort to offer new beverage options with better ingredients for soda consumers.