How rumors get Started

[greg]

http://www.bevnet.com/news/2006/12-06-2006-red%20bull_distributor_%20.asp

The article above discusses The RB price increase to its distributors.
Notice the last line in the article:
Meanwhile, speculation is rampant that the price jump might be a move to increase Red Bull's bottom line -- thereby adding more value if the company gets put up for sale.

Do you think this is "just speculation" or a vailed attempt to let people know what the Plans for RB international is?

[Mr Zabe]

Greg,
I'm to lazy to do the research. How is RB performing with profits and it's balance sheet?

Not knowing a thing about RB's financial's I would tend to believe the "speculation". Why would RB need to push these increases if it has the lion share of the ED market. From an micro economic view point, raising price will most likely cut into it's demand as there are more substitutes (other EDs) that will do better by selling at a lower price. (Cut into RB's sales/profits.)

[ 12-07-2006, 09:40 AM: Message edited by: Mr Zabe ]