anti.. i have more experience with coke in PNG (2 years and knowlegde/experience of/in industry and competition) and not too much experience with coke in indo (besides being in Java for 6 weeks).. the fridge distribution is a huge factor but my experience is electricity is available in most places, even if its through a generator. And many will sell out of an esky too.. The margins and sales the vendors makes seems more important.. CCL found in PNG that when Pepsi reduced the sale price of their line, they had vendors stocking their coke fridges with pepsi products as coke sales reduced and more of their customers wanted the cheaper pepsi products.. the customers didint care as much as Australians about the taste and as long as it was stuffed with sugar, they didnt seem to care whether it was pepsi or coke.. as a result, CCL went into a massive price campaign to win back consumers.. thats why i took CCL comments regarding PNG with a grain of salt as my experience was different to the issues released.. CCL have a new, and what is claimed as improved, CEO in PNG now.. I would imaging the indo market is more mature but I think consumers (the poorer ones) will buy whats cheaper.. as a result, if the cheaper goods aren't pepsi, then an opportunity exists to take a stake in these producers to hedge their strategy to keep prices high (assuming coke will stay the more expensive product).. nothing annoys me more than when a company such as CCL blames the currency. They should have FX hedging in place to manage that.. indonesia is a huge growing market, i hope CCL dont drop the ball there.. They should put highly skilled management in that understand the market, pricing pressures and local tastes.
CCL Price at posting:
$9.48 Sentiment: LT Buy Disclosure: Held
