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Re: Re: Re: [sharechat] V (frucor) not much competition in Europe


From: "nick" <acummin@es.co.nz>
Date: Tue, 11 Jul 2000 06:17:00 +1200


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From: G Christie

 
I don't know whether trying to bust into the energy drink market by making your own is an easier way to make money than buying FRUCOR shares, but you've hit on a very important point, and one that interests me. The apparent speed with which Frucor is expanding its markets can easily be duplicated - the next product might even taste better. Time will tell, but I wonder how long it will be on the market. Cheers Graeme  (Discl. sold my Frucor - missed most of the gains!)
        Sounds easy to replicate but the success of V has not
happened overnight. The drink has been around a while and has
beaten the competition due to top class managment and marketing,
plus the fact it tastes better than the rival products.
          The product is very well packaged and designed . 
 Next time you are in a gas station peer into the fridge and see
which drink stands out.   Its V the bright green colour
almost glows in the bright light of the fridge.
      The name V will be a huge plus in the uk market.  V is associated
with victory and the british like nothing more than being reminded they won
the war.  The main competition comes from austria and has a less appealing
name, while the other drink, lucozade is seen as boring and for years
has been given to sick children by mummy when they are sick.
         The higher standard of living in the uk means the can will be sold at
double the price it is sold here, and with a population of 60m the uk is a huge
market.
      The company has a formula in place for entering new markets, a good ad
campaign and a good product, hard to see how they can fail.
               By selling your shares i dont think you have missed most of
the gains, they are yet to come!!.  Remember they had originally intended to
list at around 2.00 a share, and the price is currently only 1.90, still
very cheep (like the budgie)
          
 nick

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