Drink-maker aims to squeeze more from UK

By DITA DE BONI

Distribution problems in Britain and South Africa continue to dog beverage-maker Frucor.

Its first half-year revenue report, for the six months to December 31, shows sales of $120.7 million, up 55 per cent from last year.

The bulk of that growth has come from Australia and New Zealand, where star product "V" has over 50 per cent and 70 per cent shares respectively in the new age beverage category.

But managing director Mark Cowsill says the progress of "V" in Britain continues to be "a bit disappointing," with the company unable to get the distribution it wants.

At the end of last month, Frucor had distribution to 32 per cent of major markets in Britain. It says it will target a 50 per cent share of the same markets by next April to May.

Similar problems exist in South Africa, but the appointment of a new distributor should increase the company's customer base.

Sales of "V" represent almost 50 per cent of group revenue. Returns in Australia and New Zealand were ahead of budget for the period.

Revenue in the second half of the year is forecast to be $134 million, producing $255 million in the full year, with second-half growth predicted to be about 31 per cent.

Full results to the end of December will be revealed late next month. Frucor shares closed yesterday at $2, down 2c.