'V' ready to ride popularity wave

By PAULA OLIVER

Fast-growing soft drink company Frucor hinted yesterday that it would soon expand into Europe, after an impressive 200 per cent profit increase.

Frucor, makers of Just Juice, Fresh Up, and "V", announced an operating profit after tax of $9.6 million for the year ended June 30, 2000.

Managing director Mark Cowsill said two new markets would be targeted before the end of the next financial year, pointing to a build-up of resources in Europe as an indicator of where the new markets will be.

"V" is also made in Holland, providing easy access to the European market.

Trendy energy drink "V" accounted for much of the company's growth, following a successful launch in the United Kingdom and Australia. Mr Cowsill said sales in the UK were running 10 per cent higher than expected, and "V" had established itself as the No 2 drink behind Red Bull.

Non-fruit drink revenues now make up 62 per cent of Frucor's revenue, compared with 36 per cent last year. Mr Cowsill said the company had undergone big changes since its early days as a fruit juice maker, and it intended to target other beverage markets.

Frucor's sales revenue lifted 60 per cent to $180 million, largely on the back of increased sales overseas. Mr Cowsill said research showed Australia's energy drink market was still young, and significant potential existed to improve sales there.

In an effort to lift juice drink revenues, two new products would be launched by the end of the year.

Frucor's share price has experienced rapid highs since its listing on June 13, when it opened at 150c. It closed yesterday down 7c at 233c.

A dividend was paid to shareholders before Frucor's listing, but directors said yesterday that they anticipated a 4c interim dividend would be paid in March 2001.