Quick Take: Cadbury's Sweet Tooth

In March, Cadbury Schweppes (NYSE: CSG) announced that it would split its beverages and candy businesses into two separate companies. Since the announcement, there have been rumors that the company's beverage arm might be sold to Cott (NYSE: COT). But in the last few weeks, the candy business has actually been the more active acquirer.

Yesterday, Cadbury Schweppes announced that it will acquire Japan's Sansei Foods for 2,750 yen per share ($22.35). Sansei specializes in sugarless candies, controlling approximately 4% of Japan's candy market. This acquisition, however, is more about technology and manufacturing methods used in making sugarless candy that Cadbury Schweppes can use around the world than about the financial strength of Sansei's Japan business.

This isn't the only acquisition Cadbury's confectionary business has pursued recently, and the company has disposed of a few units as well. In just the last two weeks, the company has gobbled up a Romanian chocolate company and a Turkish gum maker. During the first week of June, the company also sold a bulk candy maker in Canada, and sold its Australian jams business to HJ Heinz (NYSE: HNZ).

Cadbury Schweppes' moves highlight the company's current focus on its candy business. This makes a great deal of sense; the candy business isn't as consolidated as carbonated beverages, and Cadbury already has a global supply chain into which it can plug acquisitions. Pay attention to Cadbury as it separates itself from Schweppes -- it could get pretty interesting.