Occasionally in this business you come across events that change the investment landscape – an episode that alters the relationship between shareholders and the companies in which they invest. I believe such an event happened in March this year and it relates to Cadbury Schweppes.

First, some background: Cadbury Schweppes has two distinct activities – confectionery and beverages. It controls some of the oldest brand names, such as Cadbury Dairy Milk, and has made a number of significant acquisitions including Canada Dry, Dr Pepper, 7Up and Snapple to build up its portfolio. During the past 25 years the company has changed the geographic and product mix, mainly through acquisitions and disposals. A key transaction in early 2006 was the sale of its European beverage business to leave a regional drinks operation that serves only the US and Australian markets. In contrast, the confectionery business is the largest in the world. It is the number one or two in 22 of the top 50 confectionery markets in the world.