Forum Archive Index - May 2001

["Michael Gore" <michgore@paradise.net.nz>]

nick - I for one have been very disappointed to see messages posted here about Frucor in recent times that appear to be personally directed at you.  I hope this will not affect your continued contributions to this forum.  About the time I first subscribed, you were very active here and I appreciated your posts as intelligent and interesting.  I recall you were right on the money with a prediction about Wrightsons.

 

That said, I have some reservations about Frucor.  Firstly, can anyone tell me just what percentage of their business is in the product "V"?  Aren't they after all a JUICE company.   There has over the last year or so some reference to Frucor being a Buffett stock.  This seems to me largely due to being in the same sector as that famous Buffett stock Coca-Cola.  I don't understand this reasoning at all.  Any beverage company can make a cola drink.  What they can't do is establish a BRAND.  I can make a pretty good lager in my basement but I won't be taking any market share away from Steinlager in a hurry.  Except in NZ, and a lesser extent Australia, "V" has not got a brand identity.   Secondly, has anyone really taken a good look around at just how MANY energy drinks there are available out there???  There are heaps folks.  In New Zealand, sure, "V" has a head start on the rest but overseas this is a different story.  To establish a BRAND out of nowhere for this product must surely be a considerable and expensive undertaking.

 

My two cents.  regards  Michael