Branson bailing out of ethanol?

May 8, 2008
Back to TopCommentsE-mailPrintBookmark and Share
British entrepreneur Richard Branson has unloaded a company thatâ??s building two ethanol plants in the U.S., including one near Fort Wayne.

In an interview with Fortune magazine during the peak of ethanol optimism in early 2006, Branson said industry profit margins were running at about 30 percent. â??Fuel is a necessity and it should be a good industry,â?? he said.

Since then, corn has roughly doubled in price and the margins arenâ??t so good.

What does Bransonâ??s exit tell you? And what does the future hold for ethanol?
ADVERTISEMENT
  • The grass does not appear to be greener on the other side...
  • He could have unloaded it due to bad press surrounding the use of corn to produce ethanol and the way it has contributed to high food costs.......he is a very public figure....
  • Just one more indication of the problems that are caused by the US government meddling in markets, in the case the subsidy of ethanol production.
  • An update from the people at VBV: Branson sold his share in the company a month ago. Either way, he’s out of the ethanol company.

Post a comment to this blog

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
ADVERTISEMENT