London, 31 July - British confectionery giant Cadbury Plc is to review the future of its last beverage business, in Australia, and analysts say it could be worth around 600 million pounds ($1.19 billion).
Cadbury, which spun off its North American beverage business Dr Pepper Snapple in May, said the review of the unit, which is integrated with its confectionery business in Australia, would take "some months" to complete.
Chief Executive Todd Stitzer said on Wednesday the business had around 300 million pounds in annual revenues, or six percent of group sales. The decision followed a careful look through the group's portfolio of businesses.
Investec Securities analyst Martin Deboo said he expected the review to lead to a disposal of the business.
Analysts said based on Dr Pepper, which was demerged at a value of around two times sales, the Australian business could be worth around 600 million pounds, and may interest private equity groups or smaller privately-held companies.
Stitzer told a half-year results news briefing that the business had a mid-20's percent market share of the Australian soft drinks market compared to Coca-Cola Co (KO.N: Quote, Profile, Research, Stock Buzz) brands in the mid-60's. Coca-Cola owns 30 percent of Australian soft drinks firm Coca-Cola Amatil Ltd. ($1=.5051 Pound)