Trian Group attacks Cadbury management

The U.S. investor Nelson Peltz, who heads the hedge fund Trian Fund Management and owns nowadays a 4.5% stake in Cadbury, demanded more changes at the confectionery company to improve its financial performance in 2008. According to press reports, in a letter, sent to the management, Peltz threatened to consider "alternatives", if profit margins did not improve quickly. Several Cadbury Schweppes investors have expressed support for Nelson Peltz.

Cadbury said it expects confectionery revenue growth to exceed the 2007 4% - 6% target range, thanks to revenues from the UK chocolate and the US gum markets. The company also said that margins will go up slightly from the 10.1% achieved in 2006, despite expecting commodity costs to rise in 2008. CEO Todd Stitzer said that the strong performance from the confectionery performance should be attributed to both sustained investment in the division and a recovery in the UK chocolate market.