It isn't that Swedish Match wants out like you purport.
Well it seemed kind of obvious to me that they did, after reading this in their house organ. After all, why would they feature this comment so prominently if they didn't want out, and if they hadn't been primarily interested in GUMM's operating assets all along. I'm sure that a subtle mind like yours can find a different spin to put on it though. BTW, the issue is dated July 2001, so this isn't exactly new news.
JONATHAN FELL, MERRIL LYNCH:
»Regarding your joint venture with GumTech, you now state that the products can only be rolled out towards the end of 2003, which is a step backwards. Does this mean that you will break your links with GumTech?«
BO AULIN, CHEFSJURIST:
»Yes, it does. Through the sale of its chewing gum operations to Wrigley's, GumTech does not have the conditions to fulfil its obligations in accordance with our agreement. However, there are players in this market other than GumTech and we are currently investigating alternatives.«
swedishmatch.com
I disagree that Gum Tech is a money losing company now that they sold the money losing gum business
You have disagreed with that statement every single year, promising that the next year will bring profitability. Yeah, I know, "things change in business", but GUMM and you have been remarkably consistent. They ARE a money losing company. They have ALWAYS been a money losing company. According to you, next year WILL be different. That's been true every year I've followed this company.
I also disagree that Gum Tech is a one product company. Gel Tech has two products and Gum Tech has nicotine products that are ready to be marketed.
Yup, that Zicam Allergy Relief is really flying off the shelves. And the nicotine products are ready to be marketed despite the fact that Swedish Match dropped GUMM because they no longer have the resources to fulfill the joint venture agreement. This even though Swedish Match is looking for a new partner and doesn't expect to have a product ready for market until the end of 2003. Okay Dan, if you say so. You are the one with the gift for seeing the obvious when no one else can. |
