From Ozeb's British correspondent:-
Cadbury's chocolate to get more expensive
As economic conditions look set to worsen in 2008, one of life's simple pleasures, the Cadbury chocolate bar, will be more expensive too.
Cadbury's relaunched the Wispa this year
The Wispa may be among the chocolate treats set to get pricier
Cadbury Schweppes said that it would be charging more in the new year for its products, which include Dairy Milk and Flake, because of a 6pc hike in the price of dairy, oil and cocoa.
Finance director Ken Hanna said that commodity prices has risen "more sharply" in the second half, and would filter through to customers in early 2008.
He would not be drawn on how much more expensive a chocolate bar would be, but said: "We are in negotiations with retailers. The increases will be slightly higher than inflation but beyond that I can't say."
Mr Hanna was speaking alongside chief executive Todd Stitzer as they revealed in a trading update that confectionary revenue and margins for the year to the end of December would be ahead of expectations.
Cadbury Schweppes is now expecting revenue to grow above the 4pc-6pc it previously forecast, as well as a "modest increase" margins, which the company had earlier warned would not improve.
Mr Stitzer said that growth had been boosted by the re-launch of the Wispa brand, successful marketing investment in Cadbury Dairy Milk, and a "positive start" to the Christmas trading season.
He said that plans to demerge its US drinks business were on track to be completed in the second quarter of 2008, when it would be renamed Dr Pepper Snapple Group and listed separately.
The US drinks business had a challenging year in 2007, said Mr Stitzer, but added that the market had improved in recent months and that revenue was expected to grow by 4pc-5pc in the full year.
Sales of gum improved across its regions, with its market share rising 3pc in America.
Mr Stitzer said: "Our continued strong confectionery performance reflects sustained investment behind growth and capabilities combined with a recovery in UK chocolate. While the economic outlook for 2008 is uncertain, we are confident that our trading momentum will carry on into the New Year, supported by our confectionery growth and efficiency initiatives."
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