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Based on these meetings he had summarized their "best estimates" of Gallo's overall market share gain as follows:
Gain Probability
none .0
1% .25
2% .50
3% .25
Competitive Reaction.
When Sig. Preve raised the question of whether Molinas would retaliate, the consensus was that there was a 50-50 chance of retaliation...
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All agreed that if Molinas did retaliate, it was highly likely -- more than 90% chance -- that Molinas will in turn cut their prices for Maximo by 1/2 as much as Gallo (10 cents per kg). If this happens, they agreed that ORO would not retaliate and the overall market price will decline an additional 5 cents per kg and again expand to reflect this lower price...
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