Yogen Fruz IT'S ALIVE, IT'S ALIVE Message Board

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Gold/Mining/Energy : Yogen Fruz IT'S ALIVE, IT'S ALIVE

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To: Mark Kubisz who wrote (1169)	2/21/1999 9:33:00 PM
From: telecomguy	Read Replies (1) of 2453

I am a high-tech guy so certainly not an expert in the Foods business but my guess is that not only does YF license, market & distribute Tropicana, Betty Croker.....etc. but they also Manufacture these products. Why don't the Brand name company do it themselves? I suspect in the foods business they want the broadest, local distribution & because it's perishable, it may not be logistically easy to mfg, & deliver to millions of grocery stores around the world on their own regardless of how big they are. It's analogous to GM, Ford & Chrysler selling cars through dealers and NOT DIRECTLY to consumers although in their case they do the mfg. For example, bottlers of Coca-Cola are independent companies who mfg Coca Cola under the license of Coke Inc. so this appears to be a common practise. In the case of YF, because they had mfg capacity in Dallas, it probably made lot of synergistic sense to buy Integrated Brands and fill up the mfg capacity, lower the cost of goods sold and generally expand their market through the distribution channel that Integrated already established. If executed properly, it should be a WIN-WIN scenario.

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