Coke appeals against CCSB ruling

Coca-Cola is appealing against the European Commission’s scrutiny of the takeover of Coca-Cola & Schweppes Beverages (CCSB).

When the deal, which saw Coca-Cola Enterprises take control of CCSB, was approved in February, Brussels attached a number of conditions.

It insisted on monitoring the performance of each brand in the CCSB portfolio – half of which are owned by Coke and the rest by Cadbury Schweppes.

The conditions of the deal focused on protecting the future “production, distribution, marketing and sale” of Cadbury Schweppes brands.

Now Coke claims the EC is misinterpreting the non-alcohol drinks market, as the tight regulations it imposed on the deal are based on Coke being the most dominant force in the cola market.

Coke is arguing that it is just one player in the vast 6.7bn UK soft drinks market. A statement by the company explains: “Coke has chosen to appeal against the EC’s… principal finding that a separate market exists for cola-flavoured soft drinks in Britain. We believe that all our brands compete in the non-alcoholic beverage market.”

The merger involved CCE buying Cadbury’s 51 per cent stake for 620m and Coke selling its stake in CCSB to CCE for 616m. Coke has a 44 per cent stake in CCE.

Coca-Cola and Cadbury Schweppes have a number of brands which are in direct competition with each other, such as Coke’s Fanta and Fruitopia (since withdrawn), against Cadbury Schweppes’ Sunkist and Oasis.

Feature, page 44

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here