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London-based Cadbury Schweppes Plc, a confectionery and beverages company, plans to demerge its US beverages arm in the second quarter of 2008. The decision of the company comes after its investors expressed concern about the company''s financial performance despite loads of restructuring since 2003. While top management and investors are optimistic about the company''s move, the success of the strategy remains to be seen. The case study will help students to understand: (1) about demerger and its ideal timing; and (2) the need for demerger by Cadbury. This case study gives scope to discuss whether the timing is right for Cadbury to demerge. It is aimed at MBA / PGDBA students and is intended to be part of the business strategy curriculum.