Forum Archive Index - October 2000

[Chris Tse <christse@internet.co.nz>]

Nigel

Surely one subtle difference is that Coca Cola controls the market for Coca 
Cola worldwide whereas RBD has the rights to KFC, Pizza Hut and Starbucks 
for little old NZ only.

"Worldwide" includes emerging markets, whereas NZ is a relatively mature 
market for the likes of KFC. For example, ask yourself what percentage of 
the population in China have eaten KFC versus the percentage of NZers who 
have eaten KFC...

The NZ pizza market is notorious for being highly fragmented, highly price 
sensitive and lacking in brand loyalty. Also RBD management were terribly 
slow in responding to the high growth home delivery market - the only way 
to catch up was to acquire Eagle Boys - there was not enough oomph in the 
Pizza Hut brand to do it organically.

Same with coffee - mature market, highly fragmented, lots of small (and 
very good!) operators - although personally I like the Starbucks brand and 
hope it continues to do well here.

Chris

At 06:47 12/10/00, Nigel wrote:
>Krypt
>Where is the difference between RBD and Coca Cola, one of the original
>Buffet companies.
>RBD has very strong growth prospects, particularly in the lower to mid end
>of the market
>
>
>At 07:29 PM 11/10/00 +1300, you wrote:
> >Krypt,
> >
> >I try not to upset people, thats why. But if you would like an example.
> >
> >- RBD I see as a company at the mercy of consumers and the economic beast,
> >it can grow revenue little except by buying other chains which is expensive
> >and takes a while to get back.
> >
> >
> >>From my reading on Buffet these are the sort of businesses that have little
> >expansion possibility, although I did see that one of the ports has signed
> >an alliance, and I must admit I haven't read the announcement. I also must
> >say that I have looked no further for information about RBD or any of the
> >port companies than what I read on sharechat so I may be very wrong.
> >
>
>Nigel McCarter
>Safety Management and Information Services Ltd
>Box 23 019 Hamilton
>Phone 64 7 858 2429
>Fax 647  858 2689
>Mobile 021 212 4901
>
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