Monday, August 18, 2014 12:01:44 AM
First feast your eyes on the move Coca Cola & Monster made to INCREASE global control over market share &shelf space http://www.reuters.com/article/2014/08/15/us-coca-cola-idUSKBN0GE2C920140815
For openers, it’s not all in a name: just b/c it’s PB, don’t expect instant popularity…
Unless you’re the Easter Bunny, novelty of the “bunny” kind will only get you so far in the saturated food &beverage field... better off having control of the merchandise lineup, with beverage as supplement to merchandise sales [novelty merchandise usually out performs novelty food &beverage]
With that said ….
Off the top of my head (1) consumer perception [novelty] (2) Funds …are problematic
... powerful distributors jobbers &wholesalers utilize well trained sales teams to control markets and shelf space; experienced distributors know novelty categories usually translate to weak sales and limited appeal; as a result large distributors are reluctant to make those type of products top priority ...unless you make it worth their while;
Mfg incentives [promotional backing, advertising, commission &margin] all play their respective parts in getting your foot [product] in th door…
next up… the box store, super mkt ect incentives [POP incentives, margins, rebates, promotional product ect] – you have to pay to play if you want that desired location or shelf space … backdoor distributor promotions, such as discounted product combinations, part of a weekly / monthly sales program [usually tied in with other established products backed by demo’s / free promotional merchandise] are often utilized by established distributors to grow shelf space … without enormous amounts of cash to back product promotion; and trusted established distributors with strong retail relationships to promote it, very few [of the thousands] products introduced to the shelf survive the limited market trial period or th wrath of competition
Bottom line, unless it’s new, sensational, trending or fronted by an incredible imaginative ad campaign …you’re left begging and fighting the established brands for space
Yes, there are always creative solutions, but that would require executive sacrifice, imagination and money; and still, you’re left with pushing on th family market place a logo emblematic of outdated sex appeal [novelty] …IMO
If their facilities pass specs &funding allows, the focus of co should be to promote those facilities; expand private labeling and push for subcontracting larger brands; best join as many trade & beverage associations producing trade shows b/c it doesn’t look bright for a small distributor of a “stand alone beverage product” in today’s market
Did PB take the time to review the facilities, the financial background, the reach or the experience of this company before entering into a mfg / broker / distribution contract? …maybe PB just felt charitable?
One thing is certain; most companies don’t survive on name alone; it takes much more
Closing thought: settlements don’t always translate into shareholder value
What settlement? Oh …”tomorrows” settlement? The 8 – 0 win lol
Keep the fingers crossed …. That’s all there is
IMO
Inquiring minds wish to know more?
10Q Late again
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10153898
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