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Non-Tech : The Children's Beverage Group (TCBG)
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To: dlc who wrote (2248)1/6/1999 1:43:00 AM
From: Dave Shoe  Read Replies (1) of 2452
 
>>>what chance does TCBG have if their product
>>>is more popular than Capri Sun?

The plastic pouch beverage container market has major barriers to entry. Getting around the patents makes it next to impossible for another company to enter. And remember, it's the juice manufacturer that would carry the brunt of the price hit, not the packager.

Unlike pizza manufacturing, which has no barriers to entry, TCBG's product has potential interest to many companies which rival, and perhaps exceed, the size of Kraft.

And, if Kraft tries a one-two knockout, what do you want to bet it will end up in the same coutroom with the same judge that preceeded over the last Kraft-TCBG skirmish.

TCBG has a lot going for it here. A potential price battle would be ugly, but the likes of WalMart and Winn Dixie might just see what is happening and toss support TCBGs way to 'hold' prices in a better position. The big chains can afford to look beyond the immediate price war and back the party that will hold prices in check for the distance.

Shoe.
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