Cadbury Schweppes has announced that it is investing £100m to expand its chewing gum capacity.

In a trading update to the City, Cadbury said that next year it would build a £70m gum factory in Poland to support gum innovation and growth agenda in the European market.

It also plans to invest £30m in its gum factory in Mexico to expand production of its sugar-free gum.

Cadbury has also started negotiations with Tahincioglu Holdings to buy its 30% stake in Kent, a confectionery business in Turkey, to increase its ownership of the business to 95%.

Meanwhile, Cadbury said that trading for the year-to-date was in line with expectations.

It added that growth in its confectionery business across the world and in its beverage businesses in the Americas and Australia had been strong. The sale of its European beverages business is expected to be completed by early 2006.

In the UK, Cadbury said that it was still working to improve customer service levels after the installation of a major new IT system, but confectionery sales during the pre-Christmas trading period were in line with expectations.

Todd Stitzer, chief executive officer of Cadbury Schweppes, said: “We have continued to see strong sales momentum across our confectionery and beverages businesses, driven by sustained investment in growth and successful innovation.”