Forum Archive Index - November 2000

["nick" <acummin@es.co.nz>]

        The following article on frucor was in todays press.

 

INVESTORS LIKE THE TASTE OF

FRUCOR BEVERAGES

 

 Considerable interest has occured in Frucor Beverages since it

listed earlier this year, writes Andrew Ott, a client advisor at

Forsyth Barrs Christchurch office.

      The shares were issued at a discount to the indicative price

 range because oof the uncertain market,. For this the company

gained a lot of respect from investors.

        The key product from Frucors stable is its new energy drink

V which now dominates the domestic energy drink market.

 V has been launched in australia, united kingdom, ireland, and

south africa, with high hopes among investors.

        At this weeks annual meeting, shareholders were told that

distribution growth was slower than planned in the uk, and

australia was performing to plan. Some investors were dissapointed

and Frucor shares fell from 200c to 182c. But Forsyth Barr believes

the shares are trading on low multiples and are still a buy.

         It is still early days for V in the uk and australia in an

intensely competitive drinks market.

     Independently owned red bull has long been a dominent energy

drink in europe, but Frucors V does outsell it in NZ.

         Risks exist in launching a new consumer product into new,

intensely competitive markets.

   All the same prospects for Frucor are excellent and if all goes

well the rewards for investors will be great.