Blog: Peltz takes another bite out of Cadbury
Dean Best | 10 December 2007
A single shareholder upping its stake in a business by just 0.8% may not usually be considered newsworthy.
But, when that shareholder is activist investor Nelson Peltz and the company concerned is confectionery giant Cadbury Schweppes, it’s enough to perk the interest of financial hacks on both sides of the Atlantic.
The news today that Peltz has increased its stake in Cadbury to 4.5% lends further weight to the speculation that he is keeping up the pressure on the UK business to improve its financial performance.
A certain amount of intrigue surrounds just how much influence Peltz has had at Cadbury and at two of his more high-profile investments in the US, Kraft Foods and Heinz.
However, Heinz has looked rejuvenated this year and Kraft has been busy restructuring its business to improve margins, so investors in Cadbury will be hoping that the perceived pressure from Peltz will boost their returns in the months ahead.
Investors will also be looking for positive signs about Cadbury’s performance when it announces a trading update to the market tomorrow (11 December).
Cadbury seems to have had a buoyant autumn, particularly in the UK, where details of its recent performance, were made public in a leaked memo.
While investors may be cheered by more good news tomorrow, workers affected by the company’s planned cuts in the UK are sure to be less than pleased.
We hear a lot in the food industry about two interconnected trends: and social media and “foodie” culture....
Nestle, set to welcome a new CEO on 1 January, has announced more changes to the make-up of its senior management team....
Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...
The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....
- General Mills on Q1, innovation, margins
- Interview: Mondelez's outlook for China
- Aryzta FY results, outlook for 2017 - 6 takeaways
- Interview: Mondelez eyes sweet success in China
- What next for Bernard Matthews? - comment
- ConAgra acquires Frontera Foods' "gourmet" brands
- Nestle revamps foodservice arm
- Nestle launches Nesquik Protein Plus for adults
- Investors urge company action on meat production
- Nature’s Path takes majority stake in Gorilly Good
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- Redefining Snacks: From Conventional Snacks to Snack Replacements
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review
- Global Foodservice Market 2016-2020