Essay on Frigoglass

Topics: Coca-Cola, The Coca-Cola Company, Pepsi Pages: 2 (373 words) Published: April 16, 2012
Name: Orolugbagbe Isaac
Module ID: MKIB152
ID: 200839911

Frigoglass Case

What is the business model for Frigoglass?

Serving the beverage industry with provision and manufacturing of glass, a major input to bottling and ICM another key ingredient to promote sales of drinks from the retail end. The main shareholders and key board members have long history of business with coke. The Leventis family (Nigerian Bottling Company, Leventis Plc., AG Leventis, Beta Glass are strong Nigerian enterprises associated with Leventis family) and David Group based in Greece have along history of association with coke bottling. The David Group have 23% shareholding in Coca Cola Hellenic Company (which is the second largest anchor bottler of Coca-Cola Corporation with operations in 28 countries), a review of the profile of the directors of Frigoglass and CCH will highlight these. This experience was leveraged in the Frigoglass business. Relationships established with the Coca Cola various business interests, the experience and the need of the bottlers led to backward integration into glass and forward integration into ICM business (to support the retail end of the business) which was now structured to provide services to related and associated businesses who have the same needs: Brewery, Pepsi Bottlers, Other Coke bottlers, Diary Businesses.

What do you see as the major opportunities for this company? How would it grow it?

1.      Display equipment for retail of fresh foods such as meat, vegetables, fish etc. The produce requires cooling and display. 2.      Domestic cooling appliances like fridge and freezers…. the technology for the production is quite similar. 3.      Food distribution trucks and vans with compressors for cooling. The company could set up a subsidiary that is involved with building vans with compressors

Like the interviews describe, Frigoglass is involved with a lot of R&D so in order to grow it R&D needs to take place in the business...
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