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Higher demand for orange juice than for apple juice in UK

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Fruit Cost Increase from Spanish Supplier

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Fruit Cost Increase from Spanish Supplier

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loss of some customer groups because of plastic packaging

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loss of some customer groups because of plastic packaging

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Falling personnel costs, driven by higher efficiencies

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Falling personnel costs, driven by higher efficiencies

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big and relatively untapped market for supply of good quality orange juice

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Trends moving towards local produce and suppliers

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Trends moving towards local produce and suppliers

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Demand increasing but results in more competition

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Demand increasing but results in more competition

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Existing production capacity inadequate to meet increasing demand for orange juice

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Further regulations introduced (such as orange peel discarded regulation) could further harm Gross profit

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Further regulations introduced (such as orange peel discarded regulation) could further harm Gross profit

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More expensive plastic bottles increasing purchase and recycling charges

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More expensive plastic bottles increasing purchase and recycling charges

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Despite environmental downside of plastic bottles, the higher quality plastic bottle  could warrant a higher price being charges and therefore higher revenues

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Despite environmental downside of plastic bottles, the higher quality plastic bottle  could warrant a higher price being charges and therefore higher revenues

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Reliant on 1 supplier in Spain - had previous issues with 1 core supplier from South America

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Reliant on 1 supplier in Spain - had previous issues with 1 core supplier from South America

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if demand falls for some reason, TT will make a loss on the expensive machinery it invested it and  might need to lay off production personnel -> bad reputation

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if demand falls for some reason, TT will make a loss on the expensive machinery it invested it and  might need to lay off production personnel -> bad reputation

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since production is in-house, TT has less flexibility in cases where demand fluctuates - high fixed costs

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since production is in-house, TT has less flexibility in cases where demand fluctuates - high fixed costs

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Availability of additional toll processing capacity - such as AB Juicing

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subcontracting of filling process is increasingly expensive

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Comfortably the most profitable income stream

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Comfortably the most profitable income stream

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High UK demand

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opportunity to dilute orange juice with water - reduce negative perception on sugar content

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Whilst a lot of supply is dependent on Spain - they are currently viewed as reliable and minimal issues historically

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TT switched suppliers from South America to Spain to ensure TT was getting more reliable and higher quality orange juice.