Frucor accelerates Australian thrust

Friday 19th January 2001

Mark Cowsill

By S V Venkataraman

Listed Auckland-based company Frucor Beverages Group has launched its big push into the Australian market with its own distribution network. Its flagship brand V is now being handled by a standalone company after ending its arrangement with Spring Valley earlier this month.

"This helps us achieve the next stage of our development in Australia," managing director Mark Cowsill said. He also announced the appointment of Glen Martin as general manager of Frucor (Australia).

Over a third of the company's sales are now outside New Zealand, where it competes in both the carbonated and non-carbonated sectors of the cold beverage market.

Mr Cowsill said the decision to obtain the rights to produce and distribute the Pepsi brands in New Zealand and the acquisition of the H2GO mineral water brand from Lion Nathan in November 1999 had proved a sound platform for the company's high-growth strategy.

"Our revenue grew 61% to reach $180.2 million [in the financial year to June 1999]. Although the current share of Pepsi is about 10% we are confident of improving our position."

The company is due to report its interim result to December 30 in March. Mr Cowsill said Frucor's revenue from new age beverages, dominated by energy drinks, was $73 million, up 153%, with continuing growth in the sales of the V brand in New Zealand and early success in international markets, including Australia, South Africa, the UK and Ireland.

As a part of its long-term plan, the company has expanded its top management team. Carl Bergstrom has taken up the newly created post of chief executive officer (New Zealand), Peter Lamb is general manager, finance (New Zealand) and Kim Willoughby general manager, sales and distribution.

Mr Cowsill will devote more time to policy issues, long-term strategies, international business and listed company functions.

He said Frucor's New Zealand business would account for around 63% of turnover in 2001, achieve good levels of profitability and strong cash flow. He believes it is vital the company continues to have a strong local focus, especially on research and development.

Comments from our readers

No comments yet