Cadbury sees growth beyond 2011 with Kraft looming

LONDON (Reuters) - Cadbury's CBRY.L CEO Todd Stitzer was upbeat about growth prospects beyond the end of the group's restructuring plan in 2011, as he looks to defend the company against a multi-billion pound bid from U.S. food giant Kraft (KFT.N).

Stitzer told a Sanford Bernstein conference on Wednesday he was confident that Cadbury has more to deliver, but said he was restricted on what he could say within UK takeover rules after last week's 9.7 billion pound ($16 billion) approach from Kraft.

He answered questions from investors for around 15 minutes after his speech to around 300 attendees at London's Grosvenor House hotel, but there was no direct mention of the Kraft bid.

"I believe we have created a dynamic business platform with a compelling strategy in the global confectionery market," he told the packed meeting.

He said the group was confident of meeting its financial goals by the end of its four-year "Vision into Action" plan by 2011, and said he was confident for growth beyond that date.

"Looking beyond 2011, we will be well positioned to capitalized on new revenue growth opportunities, sustain best in class margins, while reinvesting in further efficiency initiatives," he said.

Kraft launched its cash and share bid for Cadbury on September 7 which was initially worth 745 pence a Cadbury share, or 10.2 billion pounds, but the fall in Kraft shares and a weaker dollar has cut this to 709 pence, or around 9.7 billion pounds.

Cadbury immediately rejected the bid as undervaluing the group, and Cadbury Chairman Roger Carr said over the weekend that it was an "unappealing prospect" being absorbed into Kraft's "low-growth conglomerate business."

Most analysts expect Kraft will need a bid of 850-900 pence to win Cadbury, while Cadbury shares were off 0.3 percent at 791-1/2p by 1130 GMT after going ex-dividend.

Billionaire investor Warren Buffett, whose Berkshire Hathaway Inc (BRKa.N) is Kraft's largest shareholder, told CNBC TV on Wednesday that Kraft has "a lot to do" to justify the price offered for Cadbury.

Kraft is looking to create the world's largest confectionery group with its bid, bringing together Cadbury's Dairy Milk chocolate and Trident gum with its own Milka chocolate and Oreo biscuits, and cutting combined costs by $625 million annually.

In 2007, Stitzer launched his 2008-2011 "Vision into Action" plan to drive underlying annual sales up 4-6 percent and operating margins to a mid-teen percentage by 2011, while also cutting 15 percent from its global workforce of 50,000.

Despite the global downturn, Cadbury saw first-half 2009 sales rise 4 percent and looks for a similar rise for the full year, while it is on track to met its margin target after a 11.9 percent figure was recorded in 2008.

(Reporting by David Jones; editing by Rupert Winchester)