Cadbury Schweppes has reported growth in its confectionery division, buoyed by a recovery in its UK chocolate business.

Since October, Cadbury said there had been “buoyant” confectionery category growth in Britain and continued growth in the gum market.

Its UK chocolate business had recovered share, benefiting from the relaunch of the classic 1980s chocolate bar Wispa, marketing investment behind Cadbury Dairy Milk and a positive start to the Christmas season, Cadbury added.

It now expects full-year like-for-like confectionery revenue growth to be above the top end of its 4%-6% goal range and underlying confectionery margins to be modestly ahead at constant exchange rates.

However, Cadbury reiterated that commodity costs would increase by 5%-6% next year, but it would offset the increases through further price rises.

Cadbury also revealed that the demerger of its Amercian beverages business remained on track and the new company would be called Dr Pepper Snapple Group.

“Our continued strong confectionery performance reflects sustained investment behind growth and capabilities combined with a recovery in UK chocolate,” said CEO Todd Stitzer.

“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.”