Title: Re: Re: [sharechat] Frucor - Lessons Learnt
I think you will find Carmel Fisher or" Fisher Funds " have Frucor in their portfolio.
With all this negative sentiment I am really getting interested in this company again.
The growth prospects in the area of "Functional energy drinks"is enormous .
If Frucor gets it right with their advertising I think the contrary investor could be rewarded.
Remember their return on S.H funds is <30% !!
To include an article from the UK.
Press release
18th February 2000
ASTONISHING GROWTH FOR ENERGY AND SPORTS DRINKS
UK sales of energy and sports drinks are forecast to exceed £700 million this year, 10% of the total for all soft drinks and well over twice the level of 1998, according to a new study published by specialist consultants Zenith International.
Aimed at briefing retailers about how to build on this extraordinary growth, the report divides the market into three product types:
* Refreshment energy - based on glucose and led by Lucozade Energy
* Sports - consisting mainly of isotonic drinks and led by Lucozade Sport
* Functional energy - containing caffeine, taurine or herbal energy and led by Red Bull.
"Functional energy is the newest and fastest growing group, with sales almost trebling in 1999," comments Zenith Chairman Richard Hall. "Single cans of Red Bull outsold single cans of Coca-Cola in British supermarkets last year, yet 62% of all outlets do not stock it. Indigo and Red Devil were also high selling brands, but many retailers will never have heard of them."
"Energy and sports drinks are adding a new dimension to the soft drinks market in two respects," he continues. "The first is functionality. The whole emphasis of their product development today is towards greater staying power, more physical energy and longer mental alertness. The second is value. Functional energy drinks in particular command such a price premium because more and more consumers find they actually work, whatever the sceptics may say."
The message to retailers is summarised in the study title "Screaming out for more space". If retailers respond, the report concludes that the market could reach a staggering £1,000 million by 2002, if not 2001.
Zenith's Retailer Briefing on UK Energy and Sports Drinks costs £50 and analyses the market, segments, brands, distribution and consumers. Contact Zenith International on tel +44 (0)1225 422050 or e-mail info@zenithinternational.com.
See IRG research reports
