Yeh, they are big on being 'number 1' and competition is...

Yeh, they are big on being 'number 1' and competition is obviously a big risk. I think we need to see the dust settle over the next 2 or 3 quarters to get a better idea of the business post import regulatory crackdown. Which I think was recently relaxed again was it not? Before the Chinese Premier's visit? The price spike to $120 on the news.

In terms of margins, there is room to move and the business would still be very profitable however, the whole idea behind BKL is marketing a 'premium' product. I think you will find that even with discounting, which every player has to do, BKL commands a price premium to other brands, such as Cenovis, because of the power of the brand. This is similar to Coke. I can't see this changing in a hurry.

Swisse is a worry, yes. You can't buy Swisse on the ASX though! Though, having 2 leading premium brands in the market is not the end of the world.

The other thing I would mention is that Australia is a lot bigger in terms of wealth and population than years ago when 'BKL was the only game in town'. There is space for more players and population growth is still humming along.