Assuming shareholders give their approval at the annual meeting this April, Cadbury Schweppes of the UK will cease to exist in May. Instead, the group’s vast global confectionery business will be renamed Cadbury plc and listed on the London Stock Exchange on 2 May, while its Americas beverage business will become an independent US based company listed on the New York Stock Exchange on 7 May. Cadbury first announced it wanted to separate the two businesses in March last year. The company said both operations would function more efficiently as separate entities. However, market observers speculated that the move had also been prompted by “activist investor” Nelson Peltz, whose Trian company owns about 4.5% of Cadbury Schweppes. Peltz is known for pressuring managements to release more profit to shareholders. Cadbury’s first plan was to sell off the drinks business – formerly known as Cadbury Schweppes Americas Beverages (CSAB), now being rebranded as the Dr Pepper Snapple Group (DPSG) – to a private equity consortium. But that scenario had to be abandoned when the global credit crunch made it difficult if not impossible for would-be buyers to raise the necessary finance. Analysts had expected the drinks business to sell for up to £8 billion (€10.3 billion), with more than £6 billion (€7.7 billion) being paid out to Cadbury Schweppes shareholders as a special dividend. In October, however, the group’s management said it would instead launch the division as an independent company, with shareholders receiving stock in the new business rather than a cash windfall. In March, Cadbury finally announced its proposed timetable for the split-up. The company said it had secured $3.8 billion (€2.5 billion) in loans from five major banks – JP Morgan Chase, Bank of America, Goldman Sachs Credit Partners, Morgan Stanley and UBS – to fund the demerger and ensure the new Dr Pepper Snapple Group began life on a sound financial basis. Even then, there were fears Cadbury Schweppes might be forced to postpone the spinoff because of the rapidly worsening economic climate. Ironically, among the first to suggest this possibility were analysts at Bear Stearns –a few days before the US bank itself went into meltdown. Credit Suisse analysts also sounded a warning note, calculating the demerger could involve related costs as high as £1.2 billion (€1.5 billion).

Pro Hydro Vivo Clear from ECSA in Chile has introduced a powdered citrus drink sachet of green tea, phosphorus and potassium, designed to yield a 1 litre drink to aid cell metabolism and hydration.

Global venture capital and private equity firm 3i has sold its 25% stake in Senoble, the third largest French producer of yogurts, dairy products and chilled desserts. The Senoble family has bought back 3i’s stake and will now regain 100% ownership of the business, which has doubled in size during 3i’s involvement over the past four years. Marc Senoble, fourth generation family business owner, sold a 25% holding to 3i in 2004 in order to finance the growth of the group. During that time turnover almost doubled from €630 million to over €1.1 billion; international business increased from 25% to 55% of total sales; four acquisitions were made outside of France; and the number of industrial manufacturing sites doubled to 12 (5 in France, 3 in the UK, 1 in Spain, 1 in Italy and 2 in Slovakia). Senoble is the market leader in private label dairy products which represents 85% of the company’s business, with the remaining 15% marketed under the Senoble and Weight Watchers brands or local brands in central Europe. Marc Senoble has recruited Francois Salamon, former executive at Danone and Club Med, as General Manager in order to add international expertise to the management group. Marc Senoble comments: “Over the past four years, I have been grateful to have chosen 3i as a partner. Leveraging its international network, in depth sector knowledge and active partnership style, 3i has played a fundamental role in our expansion in the UK and has fervently supported our development strategy in Europe.”

*Frisian Flag Indonesia, one of the largest foreign affiliates of Royal Friesland Foods, and the market leader in dairy in Indonesia, has been honoured as the best foreign investment company among large-scale industries. * The award was presented by Indonesian President Susilo Bambang Yudhoyono to Frisian Flag Indonesia Managing Director Cees Ruygrok at a special ceremony at the Presidential Palace in Jakarta. In two factories in Jakarta, Frisian Flag Indonesia produces a wide assortment of dairy products such as sweetened condensed milk, long-life ready to drink milk and powdered milk products for adults and children. This is the first time the prize has been awarded, and 5,160 companies were audited by a team of experts, looking at corporate governance, consistency of product quality, production facilities, corporate social responsibility programmes and environmental care.

*Canada’s Saputo has completed the acquisition of US Alto Dairy Cooperative for $160 million. * Alto produces Italian-style mozzarella and provolone cheeses along with American-style cheeses such as Cheddar, Monterey Jack, Muenster, Fontina and Gouda. It also produces whey products, marketed nationwide under a variety of brand names and private labels. Alto employs around 467 employees in its two plants located in Wisconsin. In 2007, the cooperative had sales of $378 million. This acquisition will enable Saputo Cheese Division (USA) to expand its business, and represents a major step in the Canadian company’s goal to achieve a stronger presence in the US.

Santa Monica based MD Drinks has added a still water to its Function Drinks range. Known simply as Water, the product is a combination of vapour distilled water and electrolytes packaged in a 23.5oz sports cap bottle. The company began business with the launch of a detoxifying drink called Function Urban Detox in November 2005. Since that time, the company has developed eight unique functional beverages designed to combat different problems, such as ageing or flu and colds, to drinks aimed at boosting mental acuity or easing sore muscles.

European scientists have rejected calls to introduce an EU-wide ban on a number of common food and beverage additives after a study conducted in the UK last year. The British study suggested a link between hyperactivity in children and a range of food and beverage colourants, consumed in combination with the preservative sodium benzoate (E211). Experts at the European Food Safety Authority (EFSA) in Milan, Italy, decided the results of the study were too inconclusive to form the basis for immediate action. However, EFSA is continuing its own reassessment of all colouring agents authorised for use in the EU, and expects to reveal first findings before the end of this year. The £750,000 (€955,000) research programme at Southampton University in England was commissioned by the UK’s official Food Standards Agency (FSA). Scientists examined the effects of consuming a juice cocktail containing sodium benzoate and six colourants on two groups of children – 137 children aged three years and 130 aged from eight to nine years. Colourants used in the study were: Sunset yellow (E110), Quinoline yellow (E104), Carmoisine (E122), Allura red (E129), Tartrazine (E102) and Ponceau 4R (E124). Sodium benzoate and one or more of these colourants are used in some soft drinks as well as many food products. In September, the Southampton researchers reported that either the sodium benzoate or the colourants produced signs of hyperactivity in both groups of children. A furore erupted in the UK press after the FSA announced the findings, and advised parents of hyperactive children to avoid giving them food or drink containing any of the colourants used in the study. The FSA forwarded the study to EFSA to be considered for further action – but critics claimed the UK agency itself should have immediately banned all the “suspect” colourants from British food and drink. After examining the research with the help of experts in behaviour, child psychiatry, allergy and statistics, EFSA’s special review panel on food and beverage additives conceded that the study provided “limited evidence” that the mix of additives “had a small effect on the activity and attention of some children.” But the EU experts added that the results were inconsistent between the two age-groups of children, and did not indicate which of the various additives might be responsible for the effects observed. “Considering the overall weight of evidence, and in view of the considerable uncertainties,” EFSA said in an official statement, “the panel concluded that the findings could not be used as a basis for altering the ADI of the respective food colours or sodium benzoate.” In its own ongoing review, the EFSA panel is studying additives individually. Its first formal recommendations are expected to include some of the colourants used in the Southampton study, such as Allura red. EFSA’s decision not to act on the Southampton study was welcomed by the British Soft Drinks Association (BSDA), which said: “All ingredients used by the soft drinks industry are approved as safe in use by the Food Standards Agency. “Soft drinks manufacturers have for some time been responding to the public’s increasing desire for more ‘natural’ ingredients. A wide variety of beverages are now available to meet this need, and innovation in this area is ongoing.” But the Food Commission, an independent consumer organisation, was critical of the European regulators. Anna Glayzer, co-ordinator of the commission’s “Action on Additives” campaign, said: “We do not need them in our food, and we would urge the European Commission to pursue a ban. Further testing would cost millions and take years, and is simply not a viable option. “In the meantime, the Action on Additives campaign calls on responsible food manufacturers to take steps to remove these food additives as soon they can.”

Red Bull made a spectacular entry into France on 1 April. The world's largest energy drink producer celebrated its long-awaited arrival in the country with 150 'Wings Teams' from around Europe, forming a magnificent get together as they circled around the Arc de Triomphe in their distinctive blue and silver Minis just hours after a BASE jumper got the 'Wings for Paris' day off to a flying start by leaping off the Eiffel Tower. The highlight of the celebrations marking the arrival of the energy drink, which is already available in more than 140 countries, with more than 3.5 billion cans sold in 2007, was a Red Bull-style car rally around the Arc de Triomphe by the 'Wings Teams'. The roundabout around the famous arch at the end of the Champs-Elysees may be one of most challenging for motorists anywhere in Europe, with swift-moving traffic entering and exiting from 12 different avenues. But the Wings Teams from 10 different countries across Europe skillfully navigated their Minis into and around the monument. After safely parking their cars, they surprised curious Parisians by giving them wings – free samples of the energy drink. Distracted tourists When asked for her experience, one of the charming British drivers replied: "It was a bit hairy getting in here at first, but the Parisians have been very kind and let us in. It's great fun. All the tourists stopped taking pictures of the Arc de Triomphe and now they're taking pictures of us. I think that says it all." Earlier, just after daybreak, Swiss BASE jumper Ueli Gegenschatz got the Red Bull 'Wings for Paris' day off to a dazzling start with his picture-perfect leap from the top of the Eiffel Tower, France's 324-metre-high national landmark. After a three-second freefall, Gegenschatz pulled his pilotchute to unfurl his canopy for a 35-second gentle descent. He landed safely about 600 metres northwest of the city's tallest structure and world's most recognisable monument. "It was an exciting climb up and the jump went well with a nice opening," said Gegenschatz, who had made his ascent up the side of the tower in the early morning hours under the cover of darkness. "It was pretty cold up there and there was quite a bit of wind. I was glad when the sun finally came up. It's a great way to introduce Red Bull to France." Gegenschatz was briefly detained by a French police officer who happened to be driving by the landing spot just as he saw the Red Bull canopy fly over his windshield. "That was just a bit of bad luck at the end," said Gegenschatz. "The police later told me it was purely by chance that they were there right when I was landing." About two hours later, French trial motorbike specialist Julien Dupont gave countless thousands of rush hour commuters in Paris's La Defense business district a rush of their own with a gravity defying motorcycle ride up, over and down the other side of the 50-metre-high arched concrete roof of the CNIT Center. "Everything went according to plan on the way up and it was my greatest accomplishment on the bike ever," said Dupont, who was helped by two tall women in short skirts who distracted security. "The roof was a bit slippery, so I had to slow down a bit on the way back down the other side. It was tricky getting the (80-kilo) bike over the fence, but that all worked out well."

* Pernod Ricard has announced the signing of a contract with Sweden for the acquisition of 100% of the shares of the Vin & Sprit Group (“V&S”), the owner of Absolut vodka. * The icon premium vodka Absolut is no 1 worldwide with around 11 million 9 litre cases sold in 2007 and a 9% volume growth. In the United States Absolut sells more than 5 million 9 litre cases and in the rest of the world close to 6 million cases were sold in 2007. Pernod Ricard Chairman and CEO Patrick Ricard, commented: “The acquisition of V&S by Pernod Ricard is a fantastic opportunity and represents our third transformational acquisition since the Seagram and Allied Domecq transactions. Absolut is an exceptional brand. Its integration within our portfolio of premium brands combined with the strength of our worldwide distribution network paves the way for outstanding growth prospects. We become thus the co-leader of the global wine and spirits industry.” * Joining a big family* Absolut will join Pernod Ricard’s brands portfolio which includes Chivas, Ballantine’s, The Glenlivet, Jameson, Martell, Beefeater, Ricard, Malibu, Kahlua, Havana Club, Mumm, Perrier-Joüet, Jacob’s Creek and Montana. In addition, V&S also brings other opportunities, notably Cruzan rum (around 600,000 cases sold in the US in 2007 and a growth profile of 27%) as well as Level, the no 4 brand in the super-premium vodka category in the US. The price paid for V&S by Pernod Ricard will be €1,450 million plus $6,050 million (€5,280 million). Pernod Ricard will also assume net debt of €346 million as of 31 December 2007 resulting in a total enterprise value of €5,626 million. V&S will pay the Swedish government a dividend of €85 million before closing of the transaction, and the purchase price of the shares will be increased by a pro-rated annual interest charge of 2.0% from 1st January 2008 until the effective closing date of the transaction. In exchange, Pernod Ricard will benefit from the full cash flow generated by V&S over this period.

*Italian family run business Fonte Sole has added Arte to the company’s luxury flagship Solé bottled water collection. * Arte is a super premium brand sourced in Nuvolento, Lombardy. Packaged in a contemporary 75cl bottle sold in either still or sparkling options, Arte enables hospitality venues to serve a more exclusive product to VIPs and dignitaries while reserving Solé for core luxury restaurant and bar menus. The sleek, multi faceted clear glass bottle is certainly an impressive design while the water’s refreshing and crisp taste has also received praise from food critics, hoteliers and restaurateurs. According to the company, the Arte range pays homage to great artists of Italy. The first featured artwork to adorn the bottle is by Leonardo da Vinci. Stephen Goodchild told water innovation: “We featured Leonardo da Vinci not only because of his stature as an Italian artist, but also because of his fascination with water and its movement. We expect to use other of his works for future Arte editions but have not ruled out using other Italian artists too.” * Italian water on foreign soil* Solé’s principal export market is the United States where the leading wine and spirit company in each of the major states typically distributes it. Outside of the US, the bottled water has achieved distribution in many countries. “In the US, Solé enjoys particular success in California followed by Florida and Arizona. In Europe, Germany is a strong market for our returnable products and, in the Far East, Japan and Malaysia are especially important.” At the end of 2007, the company donated bottles of Arte to help raise funds for the <1> at a glittering Ball held at the Dorchester Hotel in Park Lane, London. In 2008, the company will be aiming to consolidate gains made in established markets as well as developing sales in new markets, particularly China and India. What’s more, the brand has been shortlisted in this year’s Italian packaging contest <2> and will enter the 2008 water innovation awards. “Certainly the Arte product has caught the attention of Food and Beverage Directors from leading hotels around the world and this has in turn led to new distribution opportunities,” explained Goodchild. In terms of environmental and ethical initiatives, Solé Classic is bottled from recycled glass and recycled paper is used for the labels. Moreover, the company’s marketing materials are designed by a social enterprise and the firm claims to be an active supporter of the local community, supplying its water without cost to children and staff at a school close to its bottling plant. Fonte Sole is run by Giuseppe Bodei whose grandfather founded the business in 1896. <1>: http://www.braintumourtrust.co.uk <2>: http://www.italiaimballaggio.it

*Farmland Dairies in the US has added a new product to its Special Request range. * Special Request 1% Plus with Omega-3 is described as delivering a great creamy taste, with more protein and calcium than whole milk but also the addition of essential Omega-3 fatty acids. Farmland has also launched Really, Really Good low fat Chocolate Milk with Omega-3, aimed at children.

*The company in the spotlight of water innovation issue 47 is Another Bloody Water, an Australian firm that has produced an eponymous bottled water that isn’t afraid to divide opinion with a brand name trading on antipathy towards the number of different products available to consumers. Love it or hate it, one can’t help but admire the cheeky creativity behind the product and its stylish packaging. * Co-founder Michael Derepas told water innovation: “The brand has experienced strong growth and has received an amazing customer reaction to date. I can’t release volume figures, but the brand is developing way above all our expectations.” Along with business partners Didi Lo and Jay Dillon, Michael Derepas is responsible for manufacturing the bottled water brand and has poured all his lifesavings into the project. The product has been around for 18 months, soft launched in a few selected retail outlets but officially launched in March 2007. The premium spring water is available in a 60cl bottle at select East Coast cafés, bars, health stores and convenience stores in Victoria, New South Wales, Australian Capital Territory and Queensland. “Our strategy has very much been to be seen in the right places such as small organic food stores, cool cafés and the smaller independent supermarkets in the right suburbs. We don’t want to stocked everywhere. We want the people who do find us to be able to enjoy us privately or tell a friend of their discovery,” added Derepas. According to the company, the product targets savvy and cynical consumers. They obtain the basic hydration and convenience that bottled water provides without additional promises and hype. And beyond the bravado, the brand owners believe that its product is extremely palatable. Approval from BFA Sourced in the Kiewa Valley of Victoria’s Alpine High Country, the bottled water contains one of the lowest sodium content of any major brand in Australia and has approval from the <1> (BFA), Australia’s largest representative organic body. Didi Lo of Another Bloody Water observed: “The word ‘organic’ isn’t splattered all over the label. To be able to be certified as organic, it has to be grown or fed from the earth to start with. So there’s a different program for products that don’t fit into this, like water and salt, but still use nonchemical processes that are in harmony with the environment.” Australia remains the focus for the brand in 2008, but the company is starting to investigate international markets due to consumers response overseas. “Once we can get our business model right and ensure we don’t emit too much carbon along the way, we would love to play in the UK,” Derepas explained. * Playing with the big boys* “Our company isn’t backed by a large player. We are a small and passionate enterprise. We’ve scrimped and saved to develop the brand which is now competing alongside brands with much bigger marketing budgets,” he added. “Besides PR, events sponsorship and attendance at trade shows, most of our promotional efforts are simply related to what’s in the packaging and what’s on the label. You know you are doing something right when you have people emailing you just to thank you for entertaining them and promising they will buy it wherever they can find it.” A growing fan base, a pristine water source, a good looking bottle, a group of passionate business owners and a brand name which lampoons the growing range of waters jostling for space on supermarket shelves and trades on consumer scepticism. This tongue-in-cheek brand from Down Under could be set for greater things in the future. To read more articles from past issues, go to our <2> where individual copies of our magazines are available for purchase. <1>: http://www.bfa.com.au <2>: http://dairy.foodbev.com/issues/issueDetail.aspx?contentId=17