MFB - My Food Bag

[winner69]

no doubt Theresa setting this up for an IPO ..... one day

Heck the way things are being valued this would have to be a billion dollar business ....maybe not a billion but a few hundred million at least

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10870400

[winner69]

but surely theresa has an eye for the bigger opportunity ... she a very clever woman some say

[BIRMANBOY]

My Food Bag huh? Teresa looks like she's been at a few herself.....bad boy..baaaddd boy. Sorry its just big bones I know. Name is uninspiring for the prices they are charging. How about "gourmet on the go" or "meals on heals" or something with some sex appeal.

[iceman]

"meals on heals" or something with some sex appeal.

Now that would sell BB. LOL :t_up:

[CJ]

Exactly, possible shareholders will look at the prices and go CHA-CHING! Possible buyers will look at prices and quickly pass on to the grocery store. SP would rocket then crash. This business has failure written all over it, would never invest (if it ever gets to IPO).Looking at the prices, a very limited target market in NZ - those rich enough to afford but not time sensitive enough that they have time to cook 5 nights a week. If it was the US, it would be a flyer (not big enough for IPO though), but in NZ, i'm not sure. If they did prepacked gourment heat and eat that actually looked and tasted gourmet, then it would have a bigger market in NZ (though again, not big enough for IPO).

It could be a nice little niche business but dont expect it to get big.

[artemis]

Looking at the prices, a very limited target market in NZ - those rich enough to afford but not time sensitive enough that they have time to cook 5 nights a week. If it was the US, it would be a flyer (not big enough for IPO though), but in NZ, i'm not sure. If they did prepacked gourment heat and eat that actually looked and tasted gourmet, then it would have a bigger market in NZ (though again, not big enough for IPO). It could be a nice little niche business but dont expect it to get big.

I agree. If folk still have to store stuff, cook it, clean up after - what they are gaining is shopping time, thinking-about-what-to-buy-and-cook time. Pricey but not too bad compared to ready-to-heat good quality meals in the supermarket. Web site is still fairly basic (compare it to eat.co.nz site which does ready-to-heat kiwi-style meals).

[Vaygor1]

you aren't suggesting Theresa is a food... bag?

I think Birmanboy is alluding to the possibility (from the picture in the Herald) that TG is maybe over-indulging in her own product.
I had to smile... the post reflected my initial thought on the article too.
Everything is relative though; maybe the picture is an illusion. Possibly TG is of an average build and the other 2 have to walk around in the shower to get wet.

'My Food Bag' does not sound like a good name to me. Must have taken one hell of a brainstorming session to come up with that one. The only bag that I relate to food in any way is the one you can find in the seat pocket in front of you...

[biker]

I think Birmanboy is alluding to the possibility (from the picture in the Herald) that TG is maybe over-indulging in her own product.
I had to smile... the post reflected my initial thought on the article too.


'My Food Bag' does not sound like a good name to me. Must have taken one hell of a brainstorming session to come up with that one. The only bag that I relate to food in any way is the one you can find in the seat pocket in front of you...

HaHa !! Vaygor1 Maybe My Food Bag will morph into My Barf Bag. After TG's deceptive practices at Telecom, she has no credibility in my mind, but certainly, good on her for giving it a go. I hope it does well.

[CJ]

They have done well on social media sending bags to prolific twitters.

https://twitter.com/search?q=%23myfoodbag&src=typd

[winner69]

amazing how that kate keeps so skinny .... fodbags that are a delight .... yummy yummy .... and the other night Mike taking her to the St Heliers Cafe with more yummy yummy stuff and last week at porto or something mike said kate just loved the yummy yummy stuff

wonder if kate knew what to do with the foodbag .... or did the cook / nanny do the cooking

just jealous of kate .... not so of mike

but isn't this twitter wonderful for getting the message out there ..... and omg kate said she wasn't asked to send a tweet about foodbag .... must have been feeling guilty .... or did mike tell her to

[QOH]

Ah well if foodbag send Kate and Mike their dinner every night, it will probably get a mention on the show daily.
Another good freebie like his Sky City deal.

[CJ]

I like how she says she isn't paid to tweet this. But she was given the product for free!

She is well known to send a tweet on any free stuff she gets. And she gets stuff regularly.

[Vaygor1]

Next TG initiative.

Feed all those horses up to help supply Burger King. "My Nosebag".

4374

[biker]

Next TG initiative.

Feed all those horses up to help supply Burger King. "My Nosebag".

4374

Brilliant!

[BIRMANBOY]

FREE...did you say free...ok can someone tell me how to tweet please....Do not tell me to buy some birdseed (I tried it already). All the little birdies go Tweet , tweet tweet, rockin Robin da, da da.
I like how she says she isn't paid to tweet this. But she was given the product for free!

She is well known to send a tweet on any free stuff she gets. And she gets stuff regularly.

[BIRMANBOY]

Good lateral thinking again there Vaygor..do I hear JOINT Venture
http://t0.gstatic.com/images?q=tbn:ANd9GcTsgPhmA8UPVcue0cyjx8qp_1fEPFy9C EfddXMkpXrNg_joYLPx




Next TG initiative.

Feed all those horses up to help supply Burger King. "My Nosebag".

4374

[winner69]

At last - myfoodbag comes to Wellington

Signed up .... First delivery next Sunday and then every week after that

Have to do the cooking though but only takes 30 minutes Nadia says ...time for a few wines in the process. Yep come home ...open the bottle ..and then bag of goodies and we are on the way ....only hope the partner gets home on time. ...can't wait for the experience.

http://www.myfoodbag.co.nz/
At least they put Nadia on the website and not Theresa.

Hey Nadia my dear ....this selfless promotion of your venture must be worth a free bag or three.

How about a special free first order for all Sharetraders .....all rich dudes meeting your customer profile.

I report back next week

[winner69]

Hey Lizard ...seems just the right thing for a classy gal like you ....the family would be impressed

[CJ]

I haven't heard about this since the first week when they gave it all to celeb's/twitterarty.

Personally I think I would prefer eat.co.nz. Cheaper and I don't have to cook - just heat it up.

[Vaygor1]

If you and your friend are considering chocolate moose for dinner, don't worry about out-calling my-food-bag, just worry about the 30 minutes it takes to prepare it.

[Blendy]

I signed up to My Food Bag about 3 weeks ago to see what it is like... I had not really bothered before since I live by a fancy supermarket and go there daily. But after hearing so many good things, I thought I'd test it out for a week, and I've discovered it's pretty life changing! The time I'm saving from supermarket shopping and grouchily thinking about what to buy and cook in a hurry is amazing - and the food included is actually good quality (eg all free range, organic meat and other products, and fancy brands of things, particularly NZ boutique brands) and really interesting and delicious recipes that I normally wouldn't have bothered preparing.

I was curious about how the pricing would compare to the supermarket, and I'm yet to do an actual comparison (taking my food list to Countdown and calculating it out properly), but I estimate that I would not be able to buy the same products for the same price (ie I'm getting a great deal).

I see they have nearly 7000 Likes on Facebook, so I presume you probably wouldn't bother Liking it unless you were a customer. Seems to be a clever business model anyway. Not sure about an IPO though!!

[elZorro]

What I'm wondering is - if I signed up for My Food Bag, would it get me off the hook for Friday night cooking (read, Fish'nChips)? Does the food last until Friday if it's delivered on Sunday or Monday only? I guess I could swap a night.. I note the website carefully avoids spelling out the recipes.

If you and your friend are being chased by rabid free-range sheep (http://www.imdb.com/title/tt0779982/), don't worry about out-running the sheep, just worry about cooking dinner. ;)

[Xerof]

I report back next week

W69 committed to this 3 weeks ago.

swallow and report!

[elZorro]

Would that be a mixed bag of metaphors Xerof?


“I conclude that the city’s proposal to skim the frosting, pocket the cake, and avoid paying the fair, reasonable, and affordable value of the meal is a hound that will not hunt."
(a labour arbitrator, quoted by the Boston Globe, May 8, 2010)

[Blendy]

What I'm wondering is - if I signed up for My Food Bag, would it get me off the hook for Friday night cooking (read, Fish'nChips)? Does the food last until Friday if it's delivered on Sunday or Monday only? I guess I could swap a night..

Yeah, you can make the meals any night you want (unless you particularly feel the need to Instagram the same meal as other people on the specified night!), and the food lasts all week - some of the meat I put in the freezer for a few days just in case.

[Blendy]

Is this thread a bit off topic in this forum? :)

Back to my exciting Saturday night activity of working on a finance assignment comparing RYM and MET.

[Major von Tempsky]

"she a very clever woman some say".
(Winner69 about Theresa Gattung).
Wrong. She majored in Pol Sci, the easiest degree to get at Uni. She proved she's an idiot at TEL by deliberately taking on the Gov't in the belief it would back down to her. Disastrously wrong for TEL shareholders. She invested her golden parachute in gold. Idiot, look how gold prices have been going.
She deliberately chose not to have children. Weirdo. One day she'll be sitting alone in a rest home wondering where her life went and why other rest homers have lots of visitors....
I think you should leave TG out of your analysis in deciding whether to invest in Food Bag.

[Snow Leopard]

...One day she'll be sitting alone in a rest home wondering where her life went and why other rest homers have lots of visitors....

Maybe she will be so lonely that she would be willing to keep you company, Major.

Best Wishes
paper Tiger

[Blendy]

FYI, I price checked my entire Food Bag on the Countdown website, and it would have cost about $200 + delivery + recipe inspiration + time

(also, Moosie, good call!)

[Major von Tempsky]

Well we have been very fortunate in having 4 bright healthy well adjusted kids who have all married and had kids and they all honour and love us and birthdays and family occasions are really wonderful. Compared to the rewards of that, money is irrelevant.
My grandfather lived at home to 102 in good health (3 mile walk every day) - no rest home. I aim to emulate that :-)

[CJ]

Back to the actual topic, a story on a similar company overseas : http://techcrunch.com/2013/09/30/rocket-internets-hellofresh-says-hello-to-7-5m-as-the-meal-prep-service-sets-its-eyes-on-the-u-s/

[Toasty]

I use to think like that moosie but the simple fact is IMHO if you don't get to raise a child( even if it is not your own) you have missed out on one of the most rewarding pleasure's you can could ever imagine.
I feel sorry for anyone who does not get to experience the up's and downs (lots of both) but kids are a wonderful experience and unlike a Porsche I would not trade mine for all the money in the world and that just about says it all cause I really love money

I hate to jump on the bandwagon and I know its not everybody's choice to have kids but.......I have to agree with Snapiti. I wasn't really the kid type but had them (well wife actually) because it was kind of expected. Like a switch got thrown. Kinda wondered what I had been doing before then.....and I was a Porsche owner (Supercharged 996 cab, 20' wheels, 6 speed manual). Now I just think about the wasted capital that could have been invested and keeping me out of gainful employment and giving me more time with Kids, surfing etc. Luckily I got most of it back when I sold it.

[winner69]

Revenues of $30m and 10,000 subscribers (customers) and expansion into Australia

Just ripe for an IPO I reckon

The way things are being valued could be worth $100m

Article in BRW in Australia
http://www.brw.com.au/p/entrepreneurs/how_frustrated_cooks_built_myfoodbag_LRXkljPy7bKBA cvUiZ48JP

And the Major can have a look because there is a photo of his beloved Theresa

[Joshuatree]

winner you never reported back re your food bag experience?.Did something go disastrously wrong like you forgot to read the instructions and you blew the bag up and popped it (over the ceiling):)

[Harvey Specter]

Revenues of $30m and 10,000 subscribers (customers) and expansion into Australia

Just ripe for an IPO I reckon

The way things are being valued could be worth $100m

Article in BRW in Australia
http://www.brw.com.au/p/entrepreneurs/how_frustrated_cooks_built_myfoodbag_LRXkljPy7bKBA cvUiZ48JP

And the Major can have a look because there is a photo of his beloved Theresa
You issued the key quote ;


All food businesses are “notoriously low margin” so the company’s aim is to grow quickly.

[winner69]

You issued the key quote

All food businesses are “notoriously low margin” so the company’s aim is to grow quickly;

From what I gather still not profitable .... but that not necessary a hindrance these days is it?

[winner69]

winner you never reported back re your food bag experience?.Did something go disastrously wrong like you forgot to read the instructions and you blew the bag up and popped it (over the ceiling):)

I gave it 2 weeks to start. Good meals and something different and saved looking through the recipe book for inspiration. Is pretty expensive and not that much cheaper than going out for a meal

However like Moosie said buying your own produce can be fun as well.

Not their target market any more with time to do the cooking if the urge is there

The kids gave me another week of deliveries for a present. Nice meals that week

I can see how the busy Auckland yuppies are into this in a big way

[Sideshow Bob]

And the Major can have a look because there is a photo of his beloved Theresa

Think I would prefer Nadia to Theresa......

[Southern_Belle]

I know people who love this service. I work in the industry and am amazed at how many use this pricey option. Imitators will enter the market and foodies are a fickle bunch.......always looking for the next new thing.

[Jay]

I know a family of 4 (2 children eldest around 10) who use this, have said saves time ( as both working) and there is food left over so only get it once a fortnight and do a small top up at the supermarket and it is not costing them anymore than usual plus they get "free" recipes to boot.
Admit it is a bit expensive otherwise.

If they can get it going in Aus, then there should be enough numbers to make a good return

[winner69]

See Theresa name in New Years Honours

My Food Bag sales $30m now

Must be an IPO one day ......huge growth, expansion into Australia, world next ..... 10 times sales and a $300m IPO

[kizame]

I wish them well. It's a terrible name,but there are lots of listed companies especially in the US with silly names that fly, so...
However unless they moved into another area such as catering,or baking,I think it will gradually fade, as something else shiny takes punters interest and inspiration.

[artemis]

I know a lot of people in Australia use the Lite N Easy food service, not to lose weight, but just for the convenience of home delivered prepared meals.
http://www.liteneasy.com.au

.......

I know people in Oz who swear by Lite n Easy. But I think that the Food Bag folk are targeting a very different market, one not served by pre made and delivered food, or by online grocery shopping. Seems to me like the target market is foodie couples and families who don't have the time or head space to scour the recipe books and do the shopping. But want fast, interesting and quality.

The people I know who do Lite n Easy, only two so not a large sample, are more interested in work and play than food. They want food / fuel which is right there, fairly tasty, no thinking needed, a bit healthy. The food - 3 meals a day plus snacks is all labelled for which day it is to be eaten.

[macduffy]

There's headline in today's AFR - behind a paywall of course - about Kevin Roberts of Saatchi and Saatchi allegedly buying into My Food Bag. Perhaps that rumoured IPO may be on the way?

[sb9]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11414281

Here it is from NZ Herald...

[Beagle]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11414281

Here it is from NZ Herald...

On the face of it this looks like it could be an attractive float if it happens but I can't help but ponder how sticky customers would be at the prices they charge ? Once they've been on board for a month or so and experienced the variety of menu idea's what's to stop time poor customers ordering the same ingredients from one of the supermarkets with online shopping and delivery and just following the cooking instructions / menu's used previously ?

[Toasty]

I was a reluctant food bag customer. Now I am a happy customer. Wife works (harder than me) and decided that she didn't want to have to keep planning dinner every night. The cooking is easy, its the planning what to have and then getting the ingredients that is a pain (so she tells me).

She loves it so that works for me. The meals are amazing as well and I thought I had it good before. I would probably be an IPO customer just on my experience thus far. Food turns up as regular as clock work and its all fantastic quality. No need to get little extras because its all there. I don't know how they make it all fit together but it seems to work really well. I thought it was a joke when I first heard about it.

[Harvey Specter]

On the face of it this looks like it could be an attractive float if it happens but I can't help but ponder how sticky customers would be at the prices they charge ? Once they've been on board for a month or so and experienced the variety of menu idea's what's to stop time poor customers ordering the same ingredients from one of the supermarkets with online shopping and delivery and just following the cooking instructions / menu's used previously ?Those people wont get it in the first place, they will take the free recipes from the supermarket or buy a Jamie Oliver/Free Range Cook cookbook every second year.

The idea is to eliminate all the hassle of getting a meal, so that the cooking can be fun. See Toasty post for the perfect example.

My concern is what are their margins and can they get enough scale to make it a substantial business. While there are some economies of scale, the logistics of sourcing, packing and distributing food doesn't (compared to a SaaS type product)

[macduffy]

I'd second that, Toasty.

The idea doesn't appeal to me - an infrequent dinner preparer - but I have a daughter who's been a keen customer since MFBag's early days, who swears by it. Gets it fortnightly so there's an extra element of variety to the evening meals. I've enjoyed a few meals there - nice to have something a bit different and yes, the quality is good. An added bonus, I'm told, is that the kids - fussy eaters - for some reason also enjoy the MFBag meals.

If it ever IPOs I'll be taking a serious look.

[Exodia]

Thanks for the link, looks very much like IPO on the way unless someone steps in to buy them out.
I wonder if its going to come soon so they have the capital in aussie

Article on Stuff today:
Grocery delivery company My Food Bag says it has no need for further capital to fuel its rapid growth, but will not rule it out in future.
On Monday the company claimed to have surpassed $40 million in annual revenue since launching two years ago, with 15,000 subscribers receiving weekly free-range ingredients and recipes.
Asked whether a public listing or capital raising was on the cards, spokeswoman Angela March said there was no need at present.
"My Food Bag is both profitable and growing and they have no need for further capital at this time," she said.
"Of course this may be reviewed in the future."
The company also announced the appointment of global marketing expert Kevin Roberts as chairman (http://www.stuff.co.nz/business/industries/67132873/kevin-roberts-joins-my-food-bag).
Roberts, who has taken an investment stake in the business, is the executive chairman of Saatchi & Saatchi Worldwide and was chief executive of the ad agency until last year.
His career has also included senior positions with Pepsi, Gillette, Procter & Gamble, Lion Nathan and Spark.
"The MFB crew is smack bang in the sweet spot," Roberts said. "This is an up-and-running high-growth business delivering real profits."
My Food Bag is expanding into Australia, with Sydney and Melbourne markets now being served.

[Jay]

Yes dino- agree on the whole, well it is not a Grocery delivery company in reality, is the first thing they got wrong, you cannot get milk or Cornflakes delivered.
Does anybody know if they recycle recipes and if do over what time period??
Only heard good things about it, a little on the expensive side, but you are paying for your time as in not needing to spend so much time at the supermarket.
A family of 4 (both adults working) , admittedly with 2 children under 10 I know of use it and only order once a fortnight as there is enough food for that long (dinners) with a small top up and other essentials like the milk and cornflakes etc from the supermarket - saves them time and they are not really spending anymore, partly I think you are not tempted to get all the other extras you do not really need or do not end up using.

With Kevin coming on board, I think they are looking at an IPO maybe sooner than they seem to be saying.

[Toasty]

Yes dino- agree on the whole, well it is not a Grocery delivery company in reality, is the first thing they got wrong, you cannot get milk or Cornflakes delivered.
Does anybody know if they recycle recipes and if do over what time period??
Only heard good things about it, a little on the expensive side, but you are paying for your time as in not needing to spend so much time at the supermarket.
A family of 4 (both adults working) , admittedly with 2 children under 10 I know of use it and only order once a fortnight as there is enough food for that long (dinners) with a small top up and other essentials like the milk and cornflakes etc from the supermarket - saves them time and they are not really spending anymore, partly I think you are not tempted to get all the other extras you do not really need or do not end up using.

With Kevin coming on board, I think they are looking at an IPO maybe sooner than they seem to be saying.

I sound like the family you are describing. That is exactly how we use it. Every fortnight and it is a little more expensive at first glance but I also find that there is enough leftovers for at least a couple of lunches from every meal. So far I am very impressed. In my neighbourhood you see about three courier vans flying around every Sunday night delivering everybody's foodbags. I am in a reasonably affluent suburb (can I say that?) but I do know people who are of lesser means who use it for efficiencies sake.

Great stuff too. Had a giant fillet of smoked Kawhai a couple of nights ago.

[okane]

Tried it for a few weeks but unsubscribed as I found the food a bit hit and miss to be honest. Perhaps one out of four meals was a decent recipe but mostly fairly average.

[alistar_mid]

I don't trust Teresa Gattung, shes dodge as. "confusion is our best marketing tool"

[emveha]

I wish they had a vegetarian option.

[nzspeak]

Theresa oversaw one of the biggest destruction of shareholder wealth in the history of NZ as the Telecom CEO- hope she learned something. Wouldn't trust her looking after my lawn personally.
"At first the market believed in Gattung, Gattung was appointed to her current role in 1999, when Telecom's share price was $9 - almost double what it is today. " good bye a few billion...

[Baa_Baa]

Hallelujah. Thank goodness not everyone has such a short memory.


Theresa oversaw one of the biggest destruction of shareholder wealth in the history of NZ as the Telecom CEO- hope she learned something. Wouldn't trust her looking after my lawn personally.
"At first the market believed in Gattung, Gattung was appointed to her current role in 1999, when Telecom's share price was $9 - almost double what it is today. " good bye a few billion...

[macduffy]

Hallelujah. Thank goodness not everyone has such a short memory.

That's true, but before Telecom there was a job in marketing for one of the banks, BNZ I think it was. Selling meals might be more her style.

;)

[artemis]

I wish they had a vegetarian option.

They have quite a few vege recipes and I would not be surprised if they consider a vege option if there's the demand. They are quietly expanding with addons (wine, fruit) and into Melbourne, Sydney). Once suppliers and distribution are sorted - and they seem to be in NZ - organic growth is a no brainer really.

[artemis]

Theresa oversaw one of the biggest destruction of shareholder wealth in the history of NZ as the Telecom CEO- hope she learned something. Wouldn't trust her looking after my lawn personally. "At first the market believed in Gattung, Gattung was appointed to her current role in 1999, when Telecom's share price was $9 - almost double what it is today. " good bye a few billion...

That's a very simplistic view of a highly complex situation. (I worked there over that period.)

[alistar_mid]

That's a very simplistic view of a highly complex situation. (I worked there over that period.)

as did I

but it was everything from putting out stupid broadband plans - ie 10x the speed but 10th the cap, which would do the opposite of driving broadband uptake, which was one of the reasons the government stepped in because broadband uptake was so slow in NZ. Alot of this was telecoms wholesale broadband plans where priced so unfairly that when competitors added in their overheads they just couldn't compete with telecoms own internet arm (Xtra). Telecom had a monopoly.

to getting murdered in the mobile market, I remember some exec was coming to our offices and we where advised not to have our VF mobiles (yes lots of staff had personal Vf mobiles) in view as it might offend this exec. LOL, I argued we should flash them in his face to give him free customer feedback survey, your own staff think your mobiles suck, wake up

then the failed aussie venture, to Teresa gattung etc etc smaller fails like Bzone etc

It seems in any fair battlefield telecom would get wrecked, and they would only win where they had everything stacked in their favour.

Teresa gattung rode telecom during the tech boom, you could have had a monkey running the company then and it would have done well.

[nzspeak]

"then the failed aussie venture"[/QUOTE] I think the ozzy venture showed her commercial abilities and the government intervention showed her political abilities. Yes, it's a simplistic analysis saying the share price got obliterated under her watch but there isn't a single shareholder alive who would've hired her in retrospect. I don't even think she would argue that she wasn't a failure - how could you?

[winner69]

The pumping up of My Food Bag continues
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11434526

This after a recent article on Theresa's recent activities and what she is up to.

All steam ahead or an IPO one day ......even now guru analysts say its worth at least $20m ......tart it up a bit and hock it off for $50m

As the man from the Innovation Centre says "To be at $50 million in revenue in such a short time, and to be cashflow positive? Bloody impressive," he said.

[jetski1999]

The idea, and business has peaked my interest on this one if it ever comes to an IPO, but as always I will take into account management before I invest. I always ask the questions what is their track record, can they grow the company without swamping it in debt.
anyone that ever invested in rakon learned that lesson

[artemis]

Be interesting to know churn rate. Their Facebook page is mostly positive - as would be expected as ex clients are not likely to post there - but some quality issues are reported.

[dingoNZ]

Pending on valuation, I'd happily partake in an IPO offer from them, I've used them a lot and very happy. Online shopping is becoming more and more common for food, most of my friend circle do all their shopping online via Countdown or MFB.

[artemis]

I used them briefly, the bit I liked best was getting a dinky plastic pottle with one anchovy. I would use them again but probably only when I have house guests to save time planning and buying stuff. The recipes are clear and simple and lend themselves to helping hands in the kitchen, with plenty of possibilities for children or adults to help.

[Harvey Specter]

The wife has gone for it. I had no say in the matter.

I will expense it against my investment company though - market research ;)

Will give my opinion in a few weeks.

[winner69]

Must be floated one day

$100m turnover and bigger than VerItas

No that's a hint eh

I would be a starter

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11558913

[kiwidollabill]

Any guesses what their GM% would be? I guess low....

[macduffy]

They certainly appear to have a good following among the more affluent - in Auckland, at least - but I wonder about their profitability. It must be a heavily labour intensive and delivery - expensive operation, despite a high degree of standardisation of orders. Limiting choice enables bulk-buying, of course, so perhaps there is money to be made! A big plus - for customers - is the interesting recipes which can be re-used long after customers cease to be active.

[Sideshow Bob]

Have expanded into the regions - Dunedin, Hawkes Bay etc, would help the growth. Plus into Australia - wonder how Nadia's recipes are going down there??

[TideMan]

"then the failed aussie venture" I think the ozzy venture showed her commercial abilities and the government intervention showed her political abilities. Yes, it's a simplistic analysis saying the share price got obliterated under her watch but there isn't a single shareholder alive who would've hired her in retrospect. I don't even think she would argue that she wasn't a failure - how could you?[/QUOTE]

But the worst (or best, depending on your point of view) aspect of Gattung is that she is a blatant liar. She can stand in front of a TV camera and make assertions that even she in her heart of hearts must know are wrong.

[TideMan]

"then the failed aussie venture" I think the ozzy venture showed her commercial abilities and the government intervention showed her political abilities. Yes, it's a simplistic analysis saying the share price got obliterated under her watch but there isn't a single shareholder alive who would've hired her in retrospect. I don't even think she would argue that she wasn't a failure - how could you?[/QUOTE]

But the worst (or best, depending on your point of view) aspect of Gattung is that she is a blatant liar. She can stand in front of a TV camera and make assertions that even she in her heart of hearts must know are wrong.

[Zaphod]

The UK and USA markets are saturated with similar similar ventures, although none have dared ventured outside their local markets. IMO, the key to expansion outside of Australasia for My Food Bag would be the provision of recipes and contents tailored to the local markets.

IMO it would be wise not to underestimate the competitive powers of Foodstuffs & Progressive entering this market, particularly Progressive who already have a potential distribution medium established through their existing online delivery service.

[artemis]

Have expanded into the regions - Dunedin, Hawkes Bay etc, would help the growth. Plus into Australia - wonder how Nadia's recipes are going down there??

They have Australians creating recipes and sourcing local ingredients. I daresay there is a fair amount of crossover though.

One NZ competitor is WOOP - World on Our Plate. Auckland only so far. Similar to MFB but with more prep done centrally so dinner is on the table within 15 minutes. I see they also have 3 course dinner party packs.

MFB has first mover advantage. So far. And has shown scaleability. WOOP may struggle with that.

[Harvey Specter]

MFB took 40m and 20 ingredients to make bangers and mash. We changed to WOOP and it was much better. Flasher meals in less time.

Supermarkets could easily enter this space. They already have online shopping / delivery and a menu section. Just add 1 click buy for ingredients and celebrity menus and your done.

[artemis]

MFB took 40m and 20 ingredients to make bangers and mash. We changed to WOOP and it was much better. Flasher meals in less time. Supermarkets could easily enter this space. They already have online shopping / delivery and a menu section. Just add 1 click buy for ingredients and celebrity menus and your done.

So, was WOOP on the table in 15 minutes?

Supermarkets already sell Wishbone and similar. Would not take much to hook up with them for the heat and eat parts of the meal. They already do potato gratin for example.

[WingingIt]

They already have online shopping / delivery and a menu section. Just add 1 click buy for ingredients and celebrity menus and your done.

Exactly, how hard would this be. A few Chelsea Winter recipes here and there, just add to your cart - people will love it.

And surely supermarkets would be able to undercut WOOP & MFB like crazy

[winner69]

It will be on the NZX one day

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11632736

Jeez $115 revenues and 130% growth must be worth at least a billion (pr at least 1/2 billion)

[winner69]

Good fit with Veritas - yes thats it

[Sideshow Bob]

Has PE got in there?

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11730609

[whatsup]

Apparently bought out by the equity spive jocks, after that leverage it up to the eye balls and then float it ,al la Feltex/ Dick Smiths, IMHO, !

[trader_jackson]

Apparently bought out by the equity spive jocks, after that leverage it up to the eye balls and then float it ,al la Feltex/ Dick Smiths, IMHO, RUN A MILE from this crock of sh!te !

http://www.stuff.co.nz/business/industries/85495813/my-food-bag-announcement-expected-over-companys-future

Brought by New Zealand private equity player Waterman Capital, at least it is a New Zealand company...

[Harvey Specter]

Interesting it has exited the Oz market. Growth limited to NZ now.

[stoploss]

Apparently bought out by the equity spive jocks, after that leverage it up to the eye balls and then float it ,al la Feltex/ Dick Smiths, IMHO, !

If you cared to look at Waterman history you would see the last two businesses they sold , they sold to PEP . Sure the aim is to list this one , and Partners Life , however not all private equity firms are equal :)

DISC: Investor in Waterman I,II,III.

[kiora]

If you cared to look at Waterman history you would see the last two businesses they sold , they sold to PEP . Sure the aim is to list this one , and Partners Life , however not all private equity firms are equal :)

DISC: Investor in Waterman I,II,III.

Hi Stoploss. I'm interested in Waterman as I have never heard of them before.Can you post how their funds have performed as I couldn't see this on their website.Certainly looks as though exited out of Manuka Health & Education well

[whatsup]

Yep, standard play really.

In most cases !

[stoploss]

Hi Stoploss. I'm interested in Waterman as I have never heard of them before.Can you post how their funds have performed as I couldn't see this on their website.Certainly looks as though exited out of Manuka Health & Education well

Maybe call the company for the exact numbers , and leave an expression of interest .I don't think they plaster it all over the show , it's win some lose some .....But no point in putting up we purchased XYZ dog food company for 10 mil and sold it 18 months later for 25 mil .... nobody would want to sell anything to them .Their model is more they like to work with companies and have a stake and grow that for us as limited partners and the existing owners .... Fund I was a bit of a starter and they sold Express Logistics to Toll at a good price/multiple. Guthrie Bowron and DRH not great performers ...
FUND II, the two realised companies have been outstanding . Partners Life continues to grow towards listing , Healthlink is very stable and sounds like it is continuing to get bigger in Aussie, Mercy Ascot hospitals are a good preformer.Not sure if working IN was in 1 or 2 but it was a wipeout .....
Fund III, It's only just begun ,MFB will be the second call of cash.

[kiora]

Maybe call the company for the exact numbers , and leave an expression of interest .I don't think they plaster it all over the show , it's win some lose some .....But no point in putting up we purchased XYZ dog food company for 10 mil and sold it 18 months later for 25 mil .... nobody would want to sell anything to them .Their model is more they like to work with companies and have a stake and grow that for us as limited partners and the existing owners .... Fund I was a bit of a starter and they sold Express Logistics to Toll at a good price/multiple. Guthrie Bowron and DRH not great performers ...
FUND II, the two realised companies have been outstanding . Partners Life continues to grow towards listing , Healthlink is very stable and sounds like it is continuing to get bigger in Aussie, Mercy Ascot hospitals are a good preformer.Not sure if working IN was in 1 or 2 but it was a wipeout .....
Fund III, It's only just begun ,MFB will be the second call of cash.

Thanks Stoploss

[winner69]

The IPO getting closer ...soon maybe

Brokers salivating at the prospects of brand retail punters know and understand

Company going through the dressing up for sale stage. Can’t wait for the glossy brochures

Just what we want ....another high growth company on the bourse

[janner]

Company going through the dressing up for sale stage.

Say's it all for me ..

[winner69]

Say's it all for me ..


Needs a bit of polishing up to take sales from $150m to $500m

Going to be exciting times

[Leftfield]

Needs a bit of polishing up to take sales from $150m to $500m

Going to be exciting times

From nowhere to NZ's third largest food 'retailer.' Going to be interesting to watch this one.

[winner69]

From nowhere to NZ's third largest food 'retailer.' Going to be interesting to watch this one.

That’s pretty good eh

Think many punters will be keen as to get their hands on this

The PR machine going gangbusters at the moment.

[Beagle]

The IPO getting closer ...soon maybe

Brokers salivating at the prospects of brand retail punters know and understand

Company going through the dressing up for sale stage. Can’t wait for the glossy brochures

Just what we want ....another high growth company on the bourse

No doubt it will be priced as the bargain of the century lol

[winner69]

No doubt it will be priced as the bargain of the century lol

The word ‘premium’ will be used a lot in the leadup

[Lola]

Say's it all for me ..

Agreed, me too.
Plenty of precedences in recent times....sales, sales sales...no div.
Who will take it on? UBS/ Forbar?FNZ/Craigs?

[minimoke]

Needs a bit of polishing up to take sales from $150m to $500m

Going to be exciting timesI wonder what level of saturation they have already reached in NZ. Pretty well there I would have thought.

[Beagle]

I wonder what level of saturation they have already reached in NZ. Pretty well there I would have thought.

Agreed...watch for the usual talk about expanding overseas like Tegal have so successfully done lol
I think you can take everything that's said in the promotors documentation with a grain of salt. Have a look at the last 4 years historical financial statements and watch for the growth rate decline and extrapolate your own figures... is definitely the way to go... Forecasts aren't worth the paper they're written on in a late stage bull market listing as has so clearly been shown by MPG, TGH, EVO to name just three dismal failures.

Jury is out on OCA but at least directors and management have a decent amount of skin in the game...

[winner69]

Agreed...watch for the usual talk about expanding overseas like Tegal have so successfully done lol
.

Already been to Australia ...exited not that long ago ‘to focus on the NZ market’

Must have been an expensive exercise

[Beagle]

Watch for huge forecasted growth into Chatham and Stewart Islands then :D (bad dog... back into your kennel)

[minimoke]

You read it here first:

"As a market leader in New Zealand, My FoodBag is well positioned to take advantage of market growth(population driven growth and increasing per capita consumption).In addition, MyFoodBag will seek to leverage its brand strength, marketing investment, and capabilities in new product development to maintain or grow it smarket share.

MyFoodBag continues to leverage its established relationships with customers, driving growth through innovation and marketing programmes to deliver additional export sales growth in existing export markets.In addition, MyFoodBag continues to work with new potential customers and is seeking to diversify its sales channels in existing markets and enter new international markets.

MyFoodBag continues to innovate in the value added space to increase revenue in this segment. MyFoodBag will continue to develop new, bespoke, products with its customers to grow value added product sales.

My FoodBag manages its ingredient costs through a combination of commodity and currency hedging and active raw material ingredient sourcing strategies.My FoodBag seeks to be one of the lowest cost producers of in-home food globally and continually implements initiatives to reduce costs and improve efficiency across its operations."

[beetills]

I might live on the wrong side of the tracks or similar because i don't know of anybody who partakes in what MY FOOD BAG offers.

[RGR367]

I might live on the wrong side of the tracks or similar because i don't know of anybody who partakes in what MY FOOD BAG offers.
Same here. Our family and none among my friends, mostly asians though, are on their FOOD BAG offers. So when it happens, I'll be one of those disinterested.

[Beagle]

You read it here first:

"As a market leader in New Zealand, My FoodBag is well positioned to take advantage of market growth(population driven growth and increasing per capita consumption).In addition, MyFoodBag will seek to leverage its brand strength, marketing investment, and capabilities in new product development to maintain or grow it smarket share.

MyFoodBag continues to leverage its established relationships with customers, driving growth through innovation and marketing programmes to deliver additional export sales growth in existing export markets.In addition, MyFoodBag continues to work with new potential customers and is seeking to diversify its sales channels in existing markets and enter new international markets.

MyFoodBag continues to innovate in the value added space to increase revenue in this segment. MyFoodBag will continue to develop new, bespoke, products with its customers to grow value added product sales.

My FoodBag manages its ingredient costs through a combination of commodity and currency hedging and active raw material ingredient sourcing strategies.My FoodBag seeks to be one of the lowest cost producers of in-home food globally and continually implements initiatives to reduce costs and improve efficiency across its operations."

I have a bad case of Deja vu and am feeling nauseous...Do they give you a free sick bag with my food bag promotional material :)

[LAC]

Never understood it myself, are people attracted to them being delivered at home or are people just lazy to get a recipe and pick the items they require. Its what I have always wondered, whats stops Countdown setting up an aisle with all the recipes for people to just grab a packed meal solution. 10x different meals all in one aisle, just pick n go or better get deliver. Anyways I love food shopping so dont see myself or family using the service.

[mondograss]

Never understood it myself, are people attracted to them being delivered at home or are people just lazy to get a recipe and pick the items they require. Its what I have always wondered, whats stops Countdown setting up an aisle with all the recipes for people to just grab a packed meal solution. 10x different meals all in one aisle, just pick n go or better get deliver. Anyways I love food shopping so dont see myself or family using the service.

I've seen exactly that sort of thing at PaknSave, prepackaged food kits etc. Always struck me as a lot more expensive than just buying the ingredients separately, but I can see the convenience. Really there's a very low cost of entry to this sort of thing and there are competitors like World on our Plate or Jess Underground Kitchen if you can't be bothered even doing the cooking. I can see either Foodstuffs or Progressives making a push in this space and combining it with their online supermarket shopping offering.

[Kay]

I subscribed to the "classic" option for 2 weeks. My opinion is likely tainted by the lamb they sent me which smelt like it had been dragged through a sewer - and they also ignored my request for a refund!

Other than the above I found the meals to be pretty basic ...it worked out to be about $30 for 300g of beef rump (or other cheap protein cut) and a few salad/vegetables per meal. Allegedly portioned for 2 people - maybe I am greedy but id say enough for 1.5 people for an evening meal.

And as it only provides 4 or your 21 meals per week it didn't feel overly convenient as a supermarket trip is still required (and you can pick up 4 meats and veges during the same trip for about half the price).

I didn't get the impression it would have any long term appeal. Although some people obviously enjoy it (maybe they received better lamb!).

[Pipi]

I have friends that use it. They love it, but they are yuppies, on big salaries so like supper convenient things. You get a weeks worth of food or so many meals. By the sounds of it, no recipe is the same, they have a huge folder with recipes in it. Most of the recipes use out of the norm ingredients, which is all in the box, but she said to replicate it would not be easy, as most people wouldn't carry those in ingredient in their pantry. I thought it was quite expensive also. So surely there is only a certain part of the market that would subscribe.

[artemis]

Never understood it myself, are people attracted to them being delivered at home or are people just lazy to get a recipe and pick the items they require. Its what I have always wondered, whats stops Countdown setting up an aisle with all the recipes for people to just grab a packed meal solution. 10x different meals all in one aisle, just pick n go or better get deliver. Anyways I love food shopping so dont see myself or family using the service.

New World trialled meal kits in a few places a couple of years back. Don't know if they still do them.

I agree with minimoke above about saturation in NZ. MFB have extended their range a lot but I suspect the new offerings cannibalise each other to a large extent. Maybe their Bargain Box less so.

MFB is not cheap but that is obviously not a barrier for a lot of households that are time poor and juggling too much.

One aspect not often mentioned is that MFB is a great way for kids to learn to cook. Easy to follow recipes, everything right there and mostly measured ready.

[stoploss]

New World trialled meal kits in a few places a couple of years back. Don't know if they still do them.

I agree with minimoke above about saturation in NZ. MFB have extended their range a lot but I suspect the new offerings cannibalise each other to a large extent. Maybe their Bargain Box less so.

MFB is not cheap but that is obviously not a barrier for a lot of households that are time poor and juggling too much.

One aspect not often mentioned is that MFB is a great way for kids to learn to cook. Easy to follow recipes, everything right there and mostly measured ready.

Right on Artemis ,MFB is teaching a generation how to cook . If you are both working and can pull in an extra $ 100 for another hours work each day ( $ 500 if you are a dentist) ....
why not pay a slight premium to have everything there waiting for you.

[artemis]

I have friends that use it. They love it, but they are yuppies, on big salaries so like supper convenient things. You get a weeks worth of food or so many meals. By the sounds of it, no recipe is the same, they have a huge folder with recipes in it. Most of the recipes use out of the norm ingredients, which is all in the box, but she said to replicate it would not be easy, as most people wouldn't carry those in ingredient in their pantry. I thought it was quite expensive also. So surely there is only a certain part of the market that would subscribe.

Can't agree with your friends unless their pantry contains only tinned tomatoes and chickpeas. Certainly there are pantry ingredients such as freekeh that might be a tad unusual to some, but actually are readily available at the supermarket and not expensive.

Wrt the last sentence fortunately investors can decide on investments without having to personally experience them.

[Beagle]

Huge numbers of families are time poor these days with both parents working long hours but the fact is there's a wide range of cheap takeaways available for most people within a short drive that is FAR easier and more time efficient than cooking yourself and it often works out cheaper with no wastage and no power.
Highly likely MFB has already hit or very close to peak saturation and I agree with others comments this is something that supermarkets could very easily replicate.
Anyone noticed how the supermarket chains are rapidly expanding their house brands ?

[mondograss]

Foodstuffs owns Pams, so it's really not hard for them to get into this area of the market if they want to.

[minimoke]

I've seen exactly that sort of thing at PaknSave, prepackaged food kits etc. Always struck me as a lot more expensive than just buying the ingredients separately, but I can see the convenience. Really there's a very low cost of entry to this sort of thing and there are competitors like World on our Plate or Jess Underground Kitchen if you can't be bothered even doing the cooking. I can see either Foodstuffs or Progressives making a push in this space and combining it with their online supermarket shopping offering.
If you cant even be bothered cooking there is also Uber Eats. $12.90 for a Royal Roast Served with potatoes, pumpkin, kumara, and mixed veggies. Choice of sauce gravy, mint sauce, apple sauce, and horse radish .sauce. Or something from one of dozens of outer food outlets.

[kiwidollabill]

I could see a similar sort to trajectory to TME after IPO. Good service, but really stuck on our own little island as there are PLENTY of other companies that are working at scale offshore. Little ability to grow the pie, other that eat at the current food spend c.f. supermarkets (and how far have they accessed this market?). Any guesses at what their NP% will be....?

[Ninefingers]

We use MFB, I work nigh on 60 hours per week and my partner is studying all day 7 days a week, so time is the main thing this saves, plus not having to come up with interesting new things to cook. Groceries (there is still a quick weekly shop) plus MFB is about the same as what we used to spend all up, but the time/mental currency saved is good. The food has been great and there is usally some leftover for lunch. It is a bit of a luxury though and I'd be skeptical how much more this business could scale up...

[minimoke]

The IPO getting closer ...soon maybe

Brokers salivating at the prospects of brand retail punters know and understand

Company going through the dressing up for sale stage. Can’t wait for the glossy brochures

Just what we want ....another high growth company on the boursePlan is to list before end of next year. Waterman Capital hold 70% so time to tell how good are they at dressing up an IPO's

[Blendy]

I've been a dedicated MFB subscriber basically every week since they first began. I would never go without it! The time saving is the best part, and not having to go to the supermarket (except for non food items). Another great feature is getting kids involved in cooking, especially once they start cooking at school as well, they can follow MFB recipes. Essentially all you are doing is basic assembly of some fancy items.

I get the Gourmet Bag every second week and we enjoy fancy meats with ridiculously fun accompaniments and garnishes, and the other weeks we get the Bargain Box (when we have 4 fussy children). The Gourmet selection was a bit too much for my partner's children with limited palates ("what are these vegetables called?", so I 'downgraded' to Bargain Box which is much more basic, and with cheaper meats so you get way more. Lots of mince and pasta and potatoes etc. But still, recipes that are all extremely nutritious, quick to prepare, and filled with vegetables.

I also get the MFB Lunch Box which I subscribe for my own children, and also to provide the afternoon tea at my after school care programme I run. Then I've got dinners sorted, school lunches sorted, and quite often, leftovers for adult lunches too.

I would not do without this service, but I feel I've maxxed out my spending and will remain at this level. I'm probably at the higher end of the subscriber scale, getting a large meal box and multiple lunch boxes every week. I imagine most people would subscribe to one thing. Their growth has been so fast and strong throughout multiple cities in NZ, and I think they are the third largest grocery store after the supermarkets. I'm not sure how much more NZ growth there could be in an IPO, unless they tackle international markets - but that comes with logistical difficulties and all sorts. Possibly someone could buy them out eventually? I'm not sure what the long play would be? A subscription model for groceries doesn't suit everyone, and surely the people who it does suit are already doing it.

I'm in two minds about what to do if they list... I absolutely love their product and will continue to support them because it suits my lifestyle.... but from an investment perspective, I'm not sure what the future returns are likely to be. Has it already peaked?

[artemis]

...I'm in two minds about what to do if they list... I absolutely love their product and will continue to support them because it suits my lifestyle.... but from an investment perspective, I'm not sure what the future returns are likely to be. Has it already peaked?

Agree Blendy. And enjoyed you description of MFB in your household. I am a semi regular user, find it especially useful when there are people staying. Easy. Last lot were vegetarian which is a bit challenging for me, so veggie bag was simple. And recipes lend themselves to helpers in the kitchen.

[KiwiGekko]

Lets hope MFB doesn't perform as well as similar businesses overseas have on IPO: https://www.recode.net/2017/11/13/16630074/blue-apron-worst-performing-ipo-2017

[beetills]

All this talk about food and yet somehow i would prefer baked beans on toast.

[Baa_Baa]

[snip] ... Wrt the last sentence fortunately investors can decide on investments without having to personally experience them.

Agree with that, current discussion seems more interested in whether they'd buy the product than whether the company is a good investment. All this anecdotal experience is interesting but not helpful in making an investment decision. There's plenty of companies that one can invest in that one chooses not or cannot to be a customer of.

[value_investor]

I know a few people at my workplace who use MFB and swear by it. Mostly, young, busy and health conscious fits the profile. I think the people that get into it really have to love it, and they are really doing well to pull at idealistic peoples heartstrings. The whole angle with Nadia Lim as well has a cult following by the sounds of my co-workers.

To me I thought the meals were overpriced. The portion sizes aren't great by the looks of their meals and I feel as though I could buy and cook better but like I said about idealists.

The subscription model is the way to go, I mean who doesn't like a recurring revenue stream but I'm just not sure how they scale this model out, you really have to buy into it. Also not sure what their margin would be in NZ just based on how difficult logistics is. For me, that is what stops me from buying into it if it does go listed. My cynicism wouldn't let me.

[stoploss]

I know a few people at my workplace who use MFB and swear by it. Mostly, young, busy and health conscious fits the profile. I think the people that get into it really have to love it, and they are really doing well to pull at idealistic peoples heartstrings. The whole angle with Nadia Lim as well has a cult following by the sounds of my co-workers.

To me I thought the meals were overpriced. The portion sizes aren't great by the looks of their meals and I feel as though I could buy and cook better but like I said about idealists.

The subscription model is the way to go, I mean who doesn't like a recurring revenue stream but I'm just not sure how they scale this model out, you really have to buy into it. Also not sure what their margin would be in NZ just based on how difficult logistics is. For me, that is what stops me from buying into it if it does go listed. My cynicism wouldn't let me.
Yea mate no margin on food in NZ , all those Pak n Save & New World owners are really struggling :t_up:

[Raz]

Yea mate no margin on food in NZ , all those Pak n Save & New World owners are really struggling :t_up:

Mrs Raz was an early adopter, the cuts of meat were never great quality although we had fun preparing with our daughter when she was young. They limited the variety back then and we did get bored of the offerings. I suspect from what i know urber eats is starting to eat their market share..its it fast growth and big. All our friends that were MFB now mix it up with uber eats and I know some larger take aways and restaurants where evening turnover is made up of over 30% uber eats...they are are serious competitor to all in this space.

[BigBob]

Agree with that, current discussion seems more interested in whether they'd buy the product than whether the company is a good investment. All this anecdotal experience is interesting but not helpful in making an investment decision. There's plenty of companies that one can invest in that one chooses not or cannot to be a customer of.

Well not much is really known about financials and fundamentals, but I will never go anywhere near anything that Theresa Gattung has had anything to do with....

[Sideshow Bob]

Could well be an IPO where those who 'love the product so much, buy the company'.

[winner69]

Well not much is really known about financials and fundamentals, but I will never go anywhere near anything that Theresa Gattung has had anything to do with....

Reportedly not profitable just a couple of years ago but pro-forma financials can be quite beautiful in glossy brochures.

[artemis]

Could well be an IPO where those who 'love the product so much, buy the company'.

I like the product but not tempted to buy a stake at the mo. They do have first mover advantage, have the logistics in place and have a lot more locations to add for delivery. Not big ticket urban areas though.

The Trademe IPO set aside an allotment for members which was a good look.

[winner69]

IPO back on the menu for My Food Bag

Private equity Waterman know how to make a buck or two ...timing could be right (for them)

articles says $25m earnings

https://www.stuff.co.nz/business/122949268/my-food-bag-considers-selling-the-business-publicly-listing-on-nzx

[Blendy]

i opened this page and started reading the first message thinking "yeah, i agree with this!" and then realised it was my own post from 2018 LOL

I still think that investment growth with their current model would be challenging as surely they've tapped out the majority of new clients, plus there's competition from other companies splintering the available customer base.

[jg8512]

we use "hello fresh". my wife says they have more menu choices available than MFB. which surprised me, I'd have thought being the earlier-mover, MFB would have tried to make it harder for competitors by having more choices. We love hellofresh ... been with them a few months ... can see us as staying regular customers. My wife also thinks hellofresh might be a little cheaper.

I really don't get what competitive advantage MFB would have. I don't think it would be that hard to replicate the offer and business ... a bunch of menus, buy ingredients in bulk, place ingredients into a box, ring the courier ... spend the cash. Yes, having large existing customer base is a plus, but a lot of people like to experiment with food, and all it would take would be a bad experience or two, to try something new. Plus, I don't think there are a lot of fixed costs, or scale benefits from being larger. So what is MFB's competitive edge?

with the uplift in sales they have had from COVID, and as more competitors may enter or strengthen, I can see why Waterman think this is a good time to get out ...

[artemis]

we use "hello fresh". my wife says they have more menu choices available than MFB. which surprised me, I'd have thought being the earlier-mover, MFB would have tried to make it harder for competitors by having more choices. ...

Good we have meal kit company choices, but as for menu choices I doubt there is much difference between Hello Fresh and My Food Bag. Check out My Choice for example (10 dinners to choose from each week) plus their MADE range of ready to heat (or freeze or give to family) can be added.

MFB has made quite a few changes this year, responding quickly and nimbly to events, which bodes OK for an IPO.

[Sideshow Bob]

From what I once got told - MFB was the equivalent in sales as a mid-size New World. Although when supermarket owners appear on the rich list, then there may be something in it.....

In terms of competition, they don't really have a moat I can see, unless it is Nadia. Given the number of Countdown trucks on the road, their commencement of dark stores etc - they could easily offer something similar (if not already) - plus deliver all those little extras you need, like the missus' wine......

[artemis]

It was reported last year that MFB is the third largest food retailer in New Zealand. The first two are the supermarket chains. I think they used to deliver wine as well but no longer. They have added Allpress to their range.

[winner69]

Had a couple of WOOP boxes during lockdown ...they were pretty good

[wilba]

we use "hello fresh". my wife says they have more menu choices available than MFB. which surprised me, I'd have thought being the earlier-mover, MFB would have tried to make it harder for competitors by having more choices. We love hellofresh ... been with them a few months ... can see us as staying regular customers. My wife also thinks hellofresh might be a little cheaper.

I really don't get what competitive advantage MFB would have. I don't think it would be that hard to replicate the offer and business ... a bunch of menus, buy ingredients in bulk, place ingredients into a box, ring the courier ... spend the cash. Yes, having large existing customer base is a plus, but a lot of people like to experiment with food, and all it would take would be a bad experience or two, to try something new. Plus, I don't think there are a lot of fixed costs, or scale benefits from being larger. So what is MFB's competitive edge?

with the uplift in sales they have had from COVID, and as more competitors may enter or strengthen, I can see why Waterman think this is a good time to get out ...

Hellofresh is German, and I think the largest in the US (Blue Apron really got squeezed) so they have a wide range of recipes (literally thousands) that they can draw of, and specialty stuff like spices for NZ are shared with Aus from a supply perspective.

I'm surprised by how well MFB has done to maintain their market share, but always wonder how sustainable the business model is. NZ is really only big enough for two or three such businesses to operate in that space. Credit to them so far.

[Nor]

My Food Bag always makes me think of a horse's nosebag. Not an appealing association for me.

[artemis]

I've tried all the meal kits available in my area, need something to persuade me to step away from the toaster. And to feed the family when they come over without having to think or shop. The thinking is the worst.

Keep coming back to MFB.

Not necessarily investing in an IPO though, it depends.

[stoploss]

One step closer , although this might fish out a Private Equity offer , or one from a competitor .
https://i.stuff.co.nz/business/123946704/my-food-bag-offers-customers-and-staff-first-dibs-for-shares-in-the-company

[artemis]

One step closer , although this might fish out a Private Equity offer , or one from a competitor

I would say a quiet earner ongoing, IIRC it is the third largest supplier of food products to households in the country. IPO disclosures will be interesting.

[Sideshow Bob]

Business Desk saying today "All Star Board", with all of the founders stepping down, with Tony Carter as Chair, Jon McDonald (ex Trade Me CEO), Jen Bradbury (ex THL CFO). Also Sarah Hindle and Chris Marshall. Lot of changes yesterday to their board!!

AFR have said earnings about $25m, turnover reported about $130m.

That probably puts it about the turnover of a reasonable sized New World. Founders have about 27% left.

[winner69]

Got my invite to register for priority shares ....valued customer I am

Only need to make 1 purchase before March to get them if IPO.goes ahead

[Baa_Baa]

Business Desk saying today "All Star Board", with all of the founders stepping down, with Tony Carter as Chair, Jon McDonald (ex Trade Me CEO), Jen Bradbury (ex THL CFO). Also Sarah Hindle and Chris Marshall. Lot of changes yesterday to their board!!

AFR have said earnings about $25m, turnover reported about $130m.

That probably puts it about the turnover of a reasonable sized New World. Founders have about 27% left.

When you put it like that, one wonders what we're being asked to consider buying in to, is it worth it, what growth potential does it have. Looks more like an exit payout strategy than a decent investment. Not the only game in town either, just might have a better brand profile.

Thinking thinking.

[winner69]

When you put it like that, one wonders what we're being asked to consider buying in to, is it worth it, what growth potential does it have. Looks more like an exit payout strategy than a decent investment. Not the only game in town either, just might have a better brand profile.

Thinking thinking.

Yes it’s just the Waterman exit ....clever dudes who generally don’t hold investments for the long term.

[Banksie]

If anyone wants to sign up to My Food Bag so they can take part in the "priority Foodies Offer" you can use my referral code (it'll get you $50 off your first purchase) (https://www.myfoodbag.co.nz/refer?raf=andrewm107&name=Andrew). The priority registration process is open till 5pm on 29 Jan 2021 and you'll need to purchase at least once between 15 Jan and 1 Mar to qualify.

[Sideshow Bob]

When you put it like that, one wonders what we're being asked to consider buying in to, is it worth it, what growth potential does it have. Looks more like an exit payout strategy than a decent investment. Not the only game in town either, just might have a better brand profile.

Thinking thinking.

They did also mention potential market capitalisation (based on NZX average multiples) of $825m!! :scared:

[Snow Leopard]

If anyone wants to sign up to My Food Bag so they can take part in the "priority Foodies Offer" you can use my referral code (it'll get you $50 off your first purchase) (https://www.myfoodbag.co.nz/refer?raf=andrewm107&name=Andrew). The priority registration process is open till 5pm on 29 Jan 2021 and you'll need to purchase at least once between 15 Jan and 1 Mar to qualify.

Do they deliver to Borneo?

[Jaa]

Business Desk saying today "All Star Board", with all of the founders stepping down, with Tony Carter as Chair, Jon McDonald (ex Trade Me CEO), Jen Bradbury (ex THL CFO). Also Sarah Hindle and Chris Marshall. Lot of changes yesterday to their board!!

AFR have said earnings about $25m, turnover reported about $130m.

That probably puts it about the turnover of a reasonable sized New World. Founders have about 27% left.

If only we could invest in individual Pak n Saves!!

[Joh13]

I think if I was to have food delivered I’d want it already cooked and if I was going to cook myself I’d go out and buy the ingredients being a DIY kiwi. NZ doesn’t have a big enough population to scale up enough.

What’s stopping uber eats from delivering the ingredients you might need anyway, if you wanted to actually cook.

[TideMan]

I think if I was to have food delivered I’d want it already cooked and if I was going to cook myself I’d go out and buy the ingredients being a DIY kiwi. NZ doesn’t have a big enough population to scale up enough.

What’s stopping uber eats from delivering the ingredients you might need anyway, if you wanted to actually cook.

You simply don't get it, do you?
We get MFB every third week during the winter when our own veges are finished.
Yes, we could buy them ourselves and mostly we do, but once in a while it's fun to cook a new Nadia recipe using supplied ingredients.
But Nadia is the key. If she's not involved, we won't be into the IPO.

[Joh13]

Even if she is involved, how scalable is the business? How many people want to cook Nadia’s recipes? I would say not very many. Not an investment for me, period.

[artemis]

.....
But Nadia is the key. If she's not involved, we won't be into the IPO.

A front person can be just that. There is a whole organisation behind Nadia and no reason she could not continue to be the face of MFB.

More likely to be an income play, which will suit some.

[artemis]

Even if she is involved, how scalable is the business? How many people want to cook Nadia’s recipes? I would say not very many. Not an investment for me, period.

It's not mandatory to get their products. But bear in mind there are a lot of households time poor but with disposable income. That is the MFB target market.

[Jay]

I think these types of business appeal to the time poor as you say artemis, and those who can be bothered/find it hard deciding what they want for dinner over a week but don't mind cooking. Makes it easy- ingredients and recipe supplied.
I think Nadia continuing to be the front person is a key to the on going success in the medium period.
I notice they have 'introduced' another person(s) that are coming up with recepies, albeit vegetarian(??) I think they are, in the latest ads

[King1212]

Been in food industry for 20 years....to be honest the margin is so small.

Wastage...on going increase of produces....meat etc.

In winter... tomatoes is like $10 perkg...

[percy]

https://www.eatl8r.co.nz/
We order their meals.Delicious.Just microwave 2 minutes .

[stoploss]

Been in food industry for 20 years....to be honest the margin is so small.

Wastage...on going increase of produces....meat etc.

In winter... tomatoes is like $10 perkg...
If you have been in the food industry 20 years you would have seen a number of New world,Pak N save owners appear on the Rich list ....and others who probably should be..
Small margins,but if you turnover is 100's of millions it all adds up .......

[King1212]

Hahha... funny u

[nztx]

If only we could invest in individual Pak n Saves!!


Aha -- yes dish up a Pak n Save offer instead & would be in boots & all ;)

[artemis]

https://www.eatl8r.co.nz/
We order their meals.Delicious.Just microwave 2 minutes .

Meal kits are a different market percy. And a market that was non existent here just a few years ago.

[stoploss]

Meal kits are a different market percy. And a market that was non existent here just a few years ago.
To be fair MFB , has ready to eat options as well , come on Percy give it a try ...
https://www.myfoodbag.co.nz/extras/my-heat-and-eat

[Jaa]

Aha -- yes dish up a Pak n Save offer instead & would be in boots & all ;)

Yup, amazing how many of the individual store owners are on NBR's rich list.

Surprised no one has had a go at the supermarket duopoly ala 2degrees (apart from the Warehouse's thwarted attempt). The real rivers of gold in Kiwiland.

[artemis]

Yup, amazing how many of the individual store owners are on NBR's rich list.

Surprised no one has had a go at the supermarket duopoly ala 2degrees (apart from the Warehouse's thwarted attempt). The real rivers of gold in Kiwiland.

Warehouse does stock a lot of grocery items, but pantry / cleaning / personal care. Not fresh stuff though in store they do stock milk. I would say that's a good add on for them both for personal and online shoppers. If people are buying online shipping is dirt cheap and can be worth while adding a few grocery items to the order.

[Sideshow Bob]

Yup, amazing how many of the individual store owners are on NBR's rich list.

Surprised no one has had a go at the supermarket duopoly ala 2degrees (apart from the Warehouse's thwarted attempt). The real rivers of gold in Kiwiland.

I think the Gubbermint are having an inquiry into the duopolistic supermarket business. That will come to nothing......

[metalstorm]

When you put it like that, one wonders what we're being asked to consider buying in to, is it worth it, what growth potential does it have. Looks more like an exit payout strategy than a decent investment. Not the only game in town either, just might have a better brand profile.

Thinking thinking.

I was also thinking about this when I heard about the potential offer. Unless they expand to Australia (which itself already has established players), I see MFB having a very limited market.

Though consistently earning at least $20m - $30m per annum is still profitable.

I kind of (wrongly or rightly) compare MFB to diet and workout fads. They get a lot of people subscribing initially, but over time, they start to lose interest. Would be interested on what their customer churn is like and how many new subscribers they have been getting in the past year...and what the average ongoing spend of those new subscribers are etc...

[stoploss]

I was also thinking about this when I heard about the potential offer. Unless they expand to Australia (which itself already has established players), I see MFB having a very limited market.

Though consistently earning at least $20m - $30m per annum is still profitable.

I kind of (wrongly or rightly) compare MFB to diet and workout fads. They get a lot of people subscribing initially, but over time, they start to lose interest. Would be interested on what their customer churn is like and how many new subscribers they have been getting in the past year...and what the average ongoing spend of those new subscribers are etc...
Hi Metal storm they already were in Australia and retreated ......
Why doesn't NZ work alone ?How many companies have failed going into Ausssie .... plenty of things like general groceries etc they could add into the boxes .
I think of this like Trade Me,everyone thought it was a hell of a price to start with , but after it's sale it went to IPO then it has been taken out . So was plenty in it for everyone along the way ....
You mention fads ,whatever the latest diet one is they can supply ......
With the possability of IFT going ,MET last year it's about time something decent listed that the average person understands.

[nztx]

Hi Metal storm they already were in Australia and retreated ......
Why doesn't NZ work alone ?How many companies have failed going into Ausssie .... plenty of things like general groceries etc they could add into the boxes .
I think of this like Trade Me,everyone thought it was a hell of a price to start with , but after it's sale it went to IPO then it has been taken out . So was plenty in it for everyone along the way ....
You mention fads ,whatever the latest diet one is they can supply ......
With the possability of IFT going ,MET last year it's about time something decent listed that the average person understands.


Wasn't Harmoney good enough ? ;)

Or were too many better Interest rate seeking punters on here left seeking a new home when the
Corporate participants commandeered the show for their own goals excluding everyone else .. ? ;)

Agreed though -- the depth of worthwhile company NZX listings is fairly light & diminishing ..

Eliminate all the ETF's and other NZX sponsored fundies etc & the true state of things becomes obvious ..

[artemis]

IPO confirmed. Applications open 19 Feb.

[winner69]

Big hitters on the Board

The much revered Tony Carter is Chairman

Jon MacDonald no slouch (TradeMe fame)

[Banksie]

Offer details: https://myfoodbagshareoffer.co.nz/Share-Offer-P2/

[trader_jackson]

Looks pretty average at best... Hellofresh launched in NZ just a few years ago and has smashed MyFoodBag aside (already having $194m revenue in FY20 compared to MyFoodBag at $153.3m - no growth on FY19). Looks like a nice pump for FY21 numbers to try make IPO look better... but the numbers have confirmed growth story is a ??? that is for sure.
The way they've named/referred to the senior leadership team might make some a bit more excited I suppose

[winner69]

Who wouldn’t want to join in the action with numbers like this

[winner69]

I’m always wary when none of the proceeds of an IPO go directly to the company when they are touted as a high growth business.

After the $17m of IPO costs the rest of the $342m cash goes to lenders and current shareholders

[Mr Slothbear]

Who wouldn’t want to join in the action with numbers like this

all in that magic word pro forma eh winner.

[Beagle]

Looks pretty average at best... Hellofresh launched in NZ just a few years ago and has smashed MyFoodBag aside (already having $194m revenue in FY20 compared to MyFoodBag at $153.3m - no growth on FY19). Looks like a nice pump for FY21 numbers to try make IPO look better... but the numbers have confirmed growth story is a ??? that is for sure.
The way they've named/referred to the senior leadership team might make some a bit more excited I suppose

Pretty much how I see it too. Very little growth until Covid came along and some extra people started ordering because they were too scared to go out and source food themselves.
Projecting a similar level of sales in FY22 as to Covid boosted FY21 looks "very optimistic" at best and priced at 22 times what appears to be a very creative forecast of eps for FY22. Hardly looks like a "banquet" opportunity to tuck into, in my opinion. Maybe more like "fine dining" when you eat but go home and are still hungry.

[Entrep]

And being marketed very heavily to unsophisticated "investors" (mums and dads) who may not have bought a share in their life. Hope they don't get burned.

In fact, to be eligible to participate, we got a notice (as former customers) that we had to have ordered in the last 60 days.

[winner69]

A PE guy once told me most advances made to them to buy businesses get laughed out the door (metaphorically) ....or if they show promise screw the price to hell.

If somebody fronted up to Waterman with a glossy brochure like the current MFB one they’d probably be laughed out the door

[Balance]

A PE guy once told me most advances made to them to buy businesses get laughed out the door (metaphorically) ....or if they show promise screw the price to hell.

If somebody fronted up to Waterman with a glossy brochure like the current MFB one they’d probably be laughed out the door

Old timer once said to me that anyone buying a company from a PE seller at an IPO is like being a hooker who is paying to get screwed.

Feltex, CBL, Wynyard, MPG, Intueri, Evolve but to name a few.

But the promoters will always tell you that this one is different.

[winner69]

Old timer once said to me that anyone buying a company from a PE seller at an IPO is like being a hooker who is paying to get screwed.

Feltex, Wynyard, MPG, Intueri, Evolve but to name a few.

But the promoters will always tell you that this one is different.

Love how Henry from Jarden saying the listing offered investors access to a sector not currently represented on the NZ exchange.

Buy buy buy ...sector diversification is good for you.

[Baa_Baa]

Love how Henry from Jarden saying the listing offered investors access to a sector not currently represented on the NZ exchange.

Buy buy buy ...sector diversification is good for you.

Is it not obvious this is just an exit / sell-down strategy for early investors? Maybe I'm seeing spooks where there are none?

[Balance]

Love how Henry from Jarden saying the listing offered investors access to a sector not currently represented on the NZ exchange.

Buy buy buy ...sector diversification is good for you.

Who are the lead managers for this IPO?

[Beagle]

Old timer once said to me that anyone buying a company from a PE seller at an IPO is like being a hooker who is paying to get screwed.

Feltex, CBL, Wynyard, MPG, Intueri, Evolve but to name a few.

But the promoters will always tell you that this one is different.

Nice walk down memory lane with that catalogue of "winners". Some real guesswork went into a lot of those forecasts just like with this one.
Anyone's guess what FY22 sales and resulting eps will really be.

[silverblizzard888]

The IPO numbers clearly sell this at a premium with partial ideas for expansion. Seems very slow going in terms of growth, but their prize asset is their platform which they could on sell many other products, which they haven't done so yet. So far theres not really a strong moat around this and thats pretty threatening when you pay for a high valuation and potentially lose value when someone else might come and eat their lunch (or dinner), its my food bag till the school bullies come along. Though I hope it does well because the lack of quality NZ companies coming on the NZX is very slim and boring for me.

[winner69]

I see the promoters have paid themselves a $13m for the year ended March 21 ...(effectively being paid out IPO money?)

Can’t miss out on the profits already made

Suppose that’s the way private equity works.

[Gerald]

Old timer once said to me that anyone buying a company from a PE seller at an IPO is like being a hooker who is paying to get screwed.

Feltex, CBL, Wynyard, MPG, Intueri, Evolve but to name a few.

But the promoters will always tell you that this one is different.

Your mates Milford are in so I assume you will be following the breadcrumbs :)

[nztx]

I see the promoters have paid themselves a $13m for the year ended March 21 ...(effectively being paid out IPO money?)

Can’t miss out on the profits already made

Suppose that’s the way private equity works.


And many usually leveraged up to the hilt before things hit IPO
with the hefty prescribed Intangibles to balance the heist..

Many if not all of the examples in Balance's earlier post fit this mode operandi:

"Feltex, CBL, Wynyard, MPG, Intueri, Evolve but to name a few."

[Balance]

Your mates Milford are in so I assume you will be following the breadcrumbs :)

Just as they were in Wynyard, Orion Health & CBL.

Stayed well clear of those three IPOs and it had nothing to do with luck or blindly following the 'smart' money.

Be discerning, my friend!

[Balance]

Just as they were in Wynyard, Orion Health & CBL.

Stayed well clear of those three IPOs and it had nothing to do with luck or blindly following the 'smart' money.

Be discerning, my friend!

Everything though to do with pre-empting their move into a stock so they give your stock selections & investments a huge boost when they follow you!

[stoploss]

Looks pretty average at best... Hellofresh launched in NZ just a few years ago and has smashed MyFoodBag aside (already having $194m revenue in FY20 compared to MyFoodBag at $153.3m - no growth on FY19). Looks like a nice pump for FY21 numbers to try make IPO look better... but the numbers have confirmed growth story is a ??? that is for sure.
The way they've named/referred to the senior leadership team might make some a bit more excited I suppose
TJ where are you getting that number from for the Hello Fresh turnover ?

[winner69]

TJ where are you getting that number from for the Hello Fresh turnover ?

Hellofresh seeem pretty keen on telling people/press their sales numbers.

Herald article quoted 2020 Hsales $194m - up 159% from $75m prior year

And Hellofresh seem rapt in the last quarter sales being up 143% to $51.8m

Apparently Hellofresh spent $11m/$12m on advertising last year v MFB $5m odd - commentators say they have unlimited funds (accessing parents billions that means) to keep growing.

[artemis]

The IPO numbers clearly sell this at a premium with partial ideas for expansion. Seems very slow going in terms of growth, but their prize asset is their platform which they could on sell many other products, which they haven't done so yet. So far theres not really a strong moat around this and thats pretty threatening when you pay for a high valuation and potentially lose value when someone else might come and eat their lunch (or dinner), its my food bag till the school bullies come along. Though I hope it does well because the lack of quality NZ companies coming on the NZX is very slim and boring for me.

A couple of options have been dropped (wine and coffee) in the past, and various changes to offerings were made over the early covid period. Good to try out new things, even better to drop if not working. Indicates the company is open to ideas but watching carefully.

One aspect not too obvious from the outside is the impact MFB has on their suppliers, especially high end suppliers. Both from supplying product and exposure to a market with high disposable income. Culleys, for example, probably doing well. And top range meat suppliers.

I see this as an income stock but the world is seriously weird these days so who knows...

[Balance]

https://myfoodbagshareoffer.co.nz/Share-Offer-P2/

If anyone is prepared to invest in this company at the sort of multiples (high enterprise multiple, humongous PER & just about all goodwill on the balance sheet) being asked and scratchy pro-forma financial information being provided, I would suggest that there's plenty more value in the market already in some of the proven performing stocks.

EBITDA X F21 16.7X F22 13.9X
PER 28.7X 22.4X

Good on Waterman & other shareholders for supporting the business and taking it to where it is now - we need new businesses ideas and good people to be supported - so Congratulations to them but thanks, no thanks to this IPO.

[winner69]

Good to see Harbour Asset, Milford and ISG committing to 5% or more

Plenty of chatter about this great IPO ... that's good as well

[BlackPeter]

no doubt Theresa setting this up for an IPO ..... one day

Heck the way things are being valued this would have to be a billion dollar business ....maybe not a billion but a few hundred million at least

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10870400

Just looking at the first post in this thread (11/3/2013): Your crystal ball was spot on, do you still have it? :):

[winner69]

Just looking at the first post in this thread (11/3/2013): Your crystal ball was spot on, do you still have it? :):

Crystal ball still here, somewhere

This IPO is going to be a real goer - thousands of 'foodee' shareholders will get the hype going

Looking forward to the ringing of the bell at the NZX at open on the day - that'll be exciting

Good timing as well - come May when they announce their first result they'll be able to say 'exceeded PDS forecasts' and even more exciting will be able to say 'new year sales are ahead of last year and we expect this to continue with F22 sales being ahead of forecast' -- see being tricky in forecasting F22 sales to be less than F21 allows you to look good.

All that hype and good news will see share price about $2.25 by end of June

And then ....... Metro Glass come to mind

[BlackPeter]

Crystal ball still here, somewhere

This IPO is going to be a real goer - thousands of 'foodee' shareholders will get the hype going

Looking forward to the ringing of the bell at the NZX at open on the day - that'll be exciting

Good timing as well - come May when they announce their first result they'll be able to say 'exceeded PDS forecasts' and even more exciting will be able to say 'new year sales are ahead of last year and we expect this to continue with F22 sales being ahead of forecast' -- see being tricky in forecasting F22 sales to be less than F21 allows you to look good.

All that hype and good news will see share price about $2.25 by end of June

And then ....... Metro Glass come to mind

Ouch ... but I recon you well might be right :):

Maybe we should already earmark some cash to buy into My Food bag around 18 to 19 cents per share? Based on the Metro PG Experience one tenth of the IPO price (IPO I think around $1.75, Rock bottom between 15 and 16 cents) seems to have been a good price ;);

[winner69]

Good of them to show some half year numbers

Sales April to September last year up 36% on pcp

But forecast sales October 20 to March 21 only up 11% on pcp

Was April/September increase covid stay at home impact they talk about

Boost hasn't carried over post lockdown


If so H121 sales could be a challenge to meet last years numbers ....hmmm

[ratkin]

Classic lockdown stock, not much of a moat around it either

[winner69]

Classic lockdown stock, not much of a moat around it either

‘First mover advantage’ mentioned a few times in PDS

HelloFresh are selling just as much as MFB at the moment ...and they been going for just over 2 years .....interesting


Market might be expanding fast but MFB competitors taking a much greater share of the growth.

Our WOOP box comes this weekend ....get one every now and again for a change from the daily routine in the kitchen....and good thing about WOOP things come chopped up and fully prepped .....cool

Went off MFB a few years ago after a disappointing Xmas fare .......but did get a MFB a few weeks ago so I could become a FOODEE

[whatsup]

Venture funds IMO are exiting at the top, nough said !

[Beagle]

Good of them to show some half year numbers

Sales April to September last year up 36% on pcp

But forecast sales October 20 to March 21 only up 11% on pcp

Was April/September increase covid stay at home impact they talk about

Boost hasn't carried over post lockdown


If so H121 sales could be a challenge to meet last years numbers ....hmmm

A LOT of guesswork with FY22 numbers. PDS extols investors to "Tuck In". Very clever marketing implying there's a good feed to be had and no doubt this simple punch line will dupe a lot of naïve investors, may of whom will simply look at the pictures and the marketing punchline. In terms of "Tucking In" I would suggest there's only crumbs left after private equity have already gorged themselves ! So much creativity in their FY22 forecasted numbers I think they are red hot favorites to disappoint...

[Checkmate]

Very overpriced IMHO

[RGR367]

A losing proposition for new investors really. so it would just be another lousy listing for our NZ Exchange.

[winner69]

MFB have always given staff Nick names ...like Jenn(Biscoti) Bunbury

Can’t recall what Theresa Gattung’s nick was when she was involved but the kids made up real unflattering one for her when she turned up at the riding school in her riding gear ..it did seem appropriate but really mean of them :)

Theresa’s horse was pretty good ....I used to take him for a ride up into the hills quite often.

[nztx]

Very overpriced IMHO


Like Harmony & also Napier Port were too


Greedy Vendors & Fund Managers / Institutions bidding things up /cashing up & out

[winner69]

Like Harmony & also Napier Port were too


Greedy Vendors & Fund Managers / Institutions bidding things up /cashing up & out

Napier Port done OK ..but up and down but still higher than IPO

Metro Glass was a great IPO for me.

[peat]

quotes from Business Desk

existing shareholders cash up and head for the exit.

pitched to investors as a mature dividend-paying stock with limited growth plans, and little need for capital expenditure.

The vast majority of the $342 million to be raised in the initial public offer will go towards buying the co-founders and Waterman Private Capital out of the business.

12302

[Balance]

quotes from Business Desk

existing shareholders cash up and head for the exit.

[COLOR=#000000][FONT=&]pitched to investors as a mature dividend-paying stock with limited growth plans, and little need for capital expenditure.




$101m of total assets of which $86m (yes, $86m or 86%) is intangibles/goodwill!

Gulp! :eek2:

[Baa_Baa]

That’s how private equity works, pump up the volume till your ears bleed, then sell out to those who might one day recover but probably won’t.

Can’t believe NZX lets this sort of IPO happen. Criminal really.

[winner69]

That’s how private equity works, pump up the volume till your ears bleed, then sell out to those who might one day recover but probably won’t.

Can’t believe NZX lets this sort of IPO happen. Criminal really.

Gaynor says Waterman put $36m in a few years ago ...taken divies the last few year ....selling $194 in the IPO ....and still have $67m of shares in company.

Well done Waterman

[winner69]

Hey t_j

Can you sound your mate at Forbar out to find out if they are going to put a $2.25 target on My Food Bag

They are getting a decent allocation from the sounds of it

[Balance]

Gaynor says Waterman put $36m in a few years ago ...taken divies the last few year ....selling $194 in the IPO ....and still have $67m of shares in company.

Well done Waterman

Waterman is to be congratulated and one must commend them & the PE firms for backing such businesses to enable them to grow and provide opportunities.

[Balance]

That’s how private equity works, pump up the volume till your ears bleed, then sell out to those who might one day recover but probably won’t.

Can’t believe NZX lets this sort of IPO happen. Criminal really.

Too often we see lofty forecasts in IPOs these days from PE funds taking their money out to entice in the punters.

The forecasts are made on a myriad of assumptions - all blue skies stuff.

When the forecasts bombed out (as we have seen with CBL, Feltex, Wynyard, Orion, Geo, Intueri, Evolve, MPG etc etc etc), nobody is at fault as there's enough disclaimers in the offer documents to basically say that it's all your fault to believe in the lofty forecasts.

SFO & FMA only get involved when there is suspicion of fraud.

[nztx]

Thanks guys & girls for your thoughts -- confirmed my thoughts on this one ;)

Good luck to those who partake - you'll likely need it some time down the track

Just think of your vast investment in the departing existing holders as they open
the door & hoof it off into the distance with a large wad of your hard earned .. ;)

[Getty]

With a name like My Food, you would expect the books to be cooked, wouldn't you??

[BlackPeter]

With a name like My Food, you would expect the books to be cooked, wouldn't you??

:t_up::lol::lol::t_up: ... cheers - made my day :):

[nztx]

The extent of the 'INTANGIBLES' loaded up before the SP Extraction Wishlist was thrown
around certainly doesn't look Half Baked - probably quite well Over Cooked .. ;)

Be a few Retirement Funds loaded to the top of the bucket with Pingers out of this in a few weeks time .. ;)

Anyone get to read the list of potential benefactors coming out of this IPO ? ;)

Must see if Hers down the Road's kitchen needs a bit of consultancy work & few new pots & pans
thrown at it for a large cut of the new found action .. ;)

May have to be fast however to beat Getty to the draw on this new trumped up untold wealth scheme .. :)

Give things a couple of years and those new pots & pans tossed in should be worth at least a $1 mln each to hock
off to a new set of collective muggins with full wallets out there .. ;)

[winner69]

The extent of the 'INTANGIBLES' loaded up before the SP Extraction Wishlist was thrown
around certainly doesn't look Half Baked - probably quite well Over Cooked .. ;)

Be a few Retirement Funds loaded to the top of the bucket with Pingers out of this in a few weeks time .. ;)

Anyone get to read the list of potential benefactors coming out of this IPO ? ;)

Must see if Hers down the Road's kitchen needs a bit of consultancy work & few new pots & pans
thrown at it for a cut of new found action .. ;)

Nztx - whats wrong with having Intangibles ....it essentially is the value of the M.fB brand

Intangibles are always created in ‘acquisitions’

[nztx]

Nztx - whats wrong with having Intangibles ....it essentially is the value of the M.fB brand

Intangibles are always created in ‘acquisitions’


Fair comments, but the concept does possess opportunity to unravel badly .. look at some of the past IPO's .. ;)

Among the carnage, quite a few examples of humungous trumped up Intangibles amounts, large borrowings too
all to allow promoters etc floating to scarper with a large pile of newly raised Loot into the distance .. ;)

The poor new entrants to the share registers never stood a chance when things started turning to du$t did they ? ;)

Let's say this too - most would be surprised at hiked up level of Intangibles on this one's Balance Sheet for
how many years operating ..

That's one thing, but ... then the SP is further hiked up as well to reach whatever .. $1.85 IPO price

Ask yourself - if the Biz is as good as they say then why are they selling ? ;)

[winner69]

Fair comments, but the concept does possess opportunity to unravel badly .. look at some of the past IPO's .. ;)

Among the carnage, quite a few examples of humungous trumped up Intangibles amounts, large borrowings too
all to allow promoters etc floating to scarper with a large pile of newly raised Loot into the distance .. ;)

The poor new entrants to the share registers never stood a chance when things started turning to du$t did they ? ;)

Let's say this too - most would be surprised at hiked up level of Intangibles on this one's Balance Sheet for
how many years operating ..

That's one thing, but ... then the SP is further hiked up as well to reach whatever .. $1.85 IPO price

Ask yourself - if the Biz is as good as they say then why are they selling ? ;)

Hey nztx

Winner Enterprises Corp fancies HLG and acquires it for at just over 9 bucks (had to compulsory buy beagles shares)

Winner Enterprises Corp will then have about $500m of intangibles on it books

Are those Intangibles are problem?

[winner69]

Hey nztx - did you CEO Kevin Bowler (ex Frucor and Tourism NZ) and CFO Mark Winter, (worked for Fonterra previously) who are relatively new to the company, are selling 4.1 million of their combined 5.4 million shares through the IPO

If anything that’s not a good sign they believe the growth story

Windfall too tempting to pass up?

[Dlownz]

Hey nztx - did you CEO Kevin Bowler (ex Frucor and Tourism NZ) and CFO Mark Winter, (worked for Fonterra previously) who are relatively new to the company, are selling 4.1 million of their combined 5.4 million shares through the IPO

If anything that’s not a good sign they believe the growth story

Windfall too tempting to pass up?

When insiders sell large there is a reason for it. Won't be touching this one.

[nztx]

Hey nztx

Winner Enterprises Corp fancies HLG and acquires it for at just over 9 bucks (had to compulsory buy beagles shares)

Winner Enterprises Corp will then have about $500m of intangibles on it books

Are those Intangibles are problem?


A fat chance of that happening -- you aint seen what the hawk has stacked away to block things .. ;)

Now there may be a pile of intangibles on consolidation granted, but that's on acquisition
not hocking off the china to some other group of unfortunates .. ;)

[nztx]

Hey nztx - did you CEO Kevin Bowler (ex Frucor and Tourism NZ) and CFO Mark Winter, (worked for Fonterra previously) who are relatively new to the company, are selling 4.1 million of their combined 5.4 million shares through the IPO

If anything that’s not a good sign they believe the growth story

Windfall too tempting to pass up?


Good points too ;)

[winner69]

Hope prejudices and bad thoughts towards to MFB don’t stop some of you missing out on a 20% plus gain in the early stages of MFB life on the NZX. Be objective and win.

The hype and excitement abounds, brokers pushing it like mad and don’t forget the thousands of ‘foodies’ who’ve got shares ....and of course the sharesies mob.

And if there’s another lockdown MFB will come into there own again

[artemis]

Time is the new money. That is the meal kit market, and also the supermarket home delivery market. Both likely steady if modest growth as we all get busier.

One thing often overlooked in the meal kit sector is that it is fantastic for kids learning to read recipes and cook. Even preschoolers can make a start with simple prep.

[BlackPeter]

Nztx - whats wrong with having Intangibles ....it essentially is the value of the M.fB brand

Intangibles are always created in ‘acquisitions’

This coming from the same poster who compared the MFB IPO with MPG?

[Balance]

Hope prejudices and bad thoughts towards to MFB don’t stop some of you missing out on a 20% plus gain in the early stages of MFB life on the NZX. Be objective and win.

The hype and excitement abounds, brokers pushing it like mad and don’t forget the thousands of ‘foodies’ who’ve got shares ....and of course the sharesies mob.

And if there’s another lockdown MFB will come into there own again

If you are a trader, yup - the gain is potentially there in the short term due to the hype & excitement.

Is it worth the effort, knowing how lofty the forecasts are and how the shareholders are all just about abandoning ship!

[Balance]

This coming from the same poster who compared the MFB IPO with MPG?

Actually W69 made his point rather clear I believe - get in on the hype, get out post listing and wait for the inevitable MPG scenario to play out.

[BlackPeter]

Actually W69 made his point rather clear I believe - get in on the hype, get out post listing and wait for the inevitable MPG scenario to play out.

Fair enough ... there must be a reason this forum is called "sharetrader".

Having said that - any moves related to hype would not really push the balance sheet, wouldn't they? While intangibles are intangible, there still should be tangible justifications other than by hype ... though on second thoughts, maybe not?

So - lets go for it ... Gamestop did show us the way :):

[Balance]

So lead managers and brokers are Jardens, Craig’s and Forbar.

Guess which other IPOs they brought to the market?

[winner69]

This coming from the same poster who compared the MFB IPO with MPG?

MPG was a good 'investment' for a while .....went up about 20% before growth didn't eventuate.

And dont forget MFB report in May and will say did better than PDS ...whoopee.....and new year started well so F22 will be good (clever move forecasting F22 sales being less than F21)

[winner69]

Hey nztx ....do you know how many $’s of Intangibles are on the MFB books?

[nztx]

Hey nztx ....do you know how many $’s of Intangibles are on the MFB books?


As far as I see in Accounts filed with Offer on Companies Office site:

At Unaudited Interim 30 Sep 2020 Closing BV:

Intangibles Total $ 85.772 Million

Total Assets $ 109.023 Million

Shareholders' Funds $ 53.567 Million




and at Audited FY 31 Mar 2020 - Closing BV:

Software $ 1.586 Million
Software WIP $ 1.722 Million
Goodwill $ 63.631 Million
Brand $ 18.357 Million

Total Intangibles $ 85.297 Million

Total Assets $ 109.649 Million

Shareholders' Funds $ 58.223 Million

..

Some further interesting points:

1. In Sep 30 HY - there was an Equity Repurchase by the Company $6.095 Million
Increased borrowing appear to match this repurchase

2. Goodwill:

As is seen with developing companies there appears to be a situation where the original MFB
was incorporated on 11 Dec 2012

The MFB Group company was incorporated on 6 Oct 2016

It would appear that the 2012 company was sold into the 2016 Group Company later.
Presumably this is where some if not bulk ok of Goodwill arises from sale into MFB Group
of the 2012 MFB company.


Comparison of Goodwill to published NPAT in Accounts:

2017 March 31 - Goodwill $63.7 Million ; Reported NPAT $ 1.1 Million
2018 March 31 - Goodwill $63.7 Million ; Reported NPAT $ 6.1 Million
2019 March 31 - Goodwill $63.6 Million ; Reported NPAT $ 7.2 Million
2020 March 31 - Goodwill $63.6 Million ; Reported NPAT $ 8.2 Million
2020 September 30 - Goodwill Looking at reported interim Total Intangibles looks approximately similar
to Mar 2020 levels roughl ; Reported HY NPAT $7.6 Million for 6 months


3. In the Year ended 31 March 2020, a Final charge amortising "Customer Relationships" in Intangibles
was recorded - with charge to P&L $ 1.1 million

In prior periods $ 4.16 Million of "Customer Relationships" Intangibles had been amortised.

Presumably more junket thrown in earlier years to pretty up things ? ;)

Do 'Customer Relationships" expire at all, or just when Custies hoof it away from MFB or kick the bucket ?
or do they not endure on for longer than 5 years ? ;)

As far as I can briefly tabulate on back of an envelope is NTA not looking deep Negative for this IPO
even after the additional Cap Increase is thrown in ? ;)


When Total Current Assets are well exceeded by just Current Accounts Payable alone in multiple
periods, then an Equity repurchase is undertaken & matches almost exactly borrowing for it in most
recent HY 30 Sep 2020, then this tends to raise a Red Flag or two .. ;)

What happens when Customer Advance Payments (ie: Deferred Revenue) slows or peters out ? ;)

These amount to $3.4 Million (30 Sep 2020) ; $5.1 Million (31 March 2020) ; $ 0.35 Million (31 March 2019)

as in published accounts and in all cases are additional to Accounts Payable referred to previously

..

Let's put it this way - I tend to see lots that would tend make me uncomfortable throwing even a buck or two at this IPO

but good luck to others who do partake..

[Habits]

At Unaudited Interim 30 Sep 2020 Closing BV:

Intangibles Total $ 85.772 Million

Total Assets $ 109.023 Million

Shareholders' Funds $ 53.567 Million"

So if it weren't for the intangibles this company would have negative 29m equity. It has up to 56m of debt already... where has that been spent... funding losses, payouts to shareholders?? or maybe some of it is still sitting in the bank.

Makes a healthy profit .. 7.6m for 6 months

[nztx]

Very similar 'set up' by departing / selling down 'Smart Money' to

EVO & MPG floats with this one - is it not ? ;)

$1.85 per share ? .. Yeah Nah Nah .. ;)


but based on that IPO SP level with the hype - in a sea of heightening SP's for others, could well see
quite a few eager monkeys showing interest .. but who knows ;)


But for all the Hype built in - ask yourself what is the real cost of establishing
a commercial kitchen of scale, distribution facility, packaging branding & marketing

With this one $63 million in Goodwill from early on .. another $18 million in Brand

All up 78.67% of TOTAL ASSETS in Intangibles before even reaching the productive
assets & physical nuts & bolts in the show that do the work, and that's just 8 or 9
years after the outfit left the starting blocks .. for which around or earlier than 2017 year
has seen with $1.1 mill NPAT in 2017 a mere $63 million magically appear in fluffy Goodwill
on the books, it seems ;)


Let's consider this from another perspective - in Liquidation terms, if things turned
turtle due some remote event - how much of the recorded assets would evaporate
& how much would likely be left for a Liquidator to hock off ? ;)


Any change left over after dealing with Liabilities & a large Liquidation chop deducted or a large gaping hole
where all the fluffy Intangibles once stood ? ;)


Back of the envelope - say in a good year

Say $15.2M / 242.4 million bits = 6.27 cps

say 70% distributed - 4.39 cps = 2.37% on IPO cost .. ;)

Is that gooood or not ? ;)

Upside difficult to see here but I may need new glasses - give me EVO / HGH / HLG infact 5 dozen others instead .. ;)

Maybe much of the real value has already been extracted & dispatched before hitting Listing day on NZX ? ;)

And the Negative NTA gets to persist well into the future with only 30% retained using that guestimate

Many others well established on NZX look much much better, but hey - it was an interesting exercise .. ;)

From this we know that the smart money is still out there, still looking for well a fairly large chop
where there haven't been too many recent floats etc to fill their coffers on, or enrich early players
and tired CEO's Retirement funds .. ;)


What happens when say 'Mrs Jones's Classic Kitchen Bag' doing the job better
comes along grabbing the market and seeking listing ? ;)

Or the Food bag fad goes away or something happens ? ;)

[Balance]

At Unaudited Interim 30 Sep 2020 Closing BV:

Intangibles Total $ 85.772 Million

Total Assets $ 109.023 Million

Shareholders' Funds $ 53.567 Million"

So if it weren't for the intangibles this company would have negative 29m equity. It has up to 56m of debt already... where has that been spent... funding losses, payouts to shareholders?? or maybe some of it is still sitting in the bank.

Makes a healthy profit .. 7.6m for 6 months

If any business keeps capitalising marketing & promotional spend as intangibles (brand & building up goodwill), the business will be profitable from an accounting viewpoint but cashflow wise?

[winner69]

Businessdesk report -

My Food Bag chief executive Kevin Bowler says the meal-kit company is likely to outperform the growth targets outlined in its initial public offering documents,

Of course they well. Report full year in May and they’ll say beat PDS forecast ...whoopee ....and say F22 started well and sales will exceed forecast ....double whoopee

And share price will soar past $2.30

[Habits]

If any business keeps capitalising marketing & promotional spend as intangibles (brand & building up goodwill), the business will be profitable from an accounting viewpoint but cashflow wise?

Ah ha ... some justification I suppose in capitalising marketing costs. Would reduce any potential divvies

[winner69]

If any business keeps capitalising marketing & promotional spend as intangibles (brand & building up goodwill), the business will be profitable from an accounting viewpoint but cashflow wise?

I don’t think theirs been any capitalising off market and promotional spend

It seems that goodwill etc has been created when My Food Bag Group ‘acquired’ My Food Bag Holdings when Waterman came on board (nztx mentioned this as well). Waterman obviously though what they paid was a good price - the goodwill etc just the difference between what they paid and MFB Holdings was worth on paper. Usual practice.

The amount doesn’t seem excessive in light of earnings and cash flow generation (after allowing for interest and jiggery pokers things PE companies use). Any company that acquires other companies has large intangibles - TRA, HGH, GXH etc etc

To me the emotion shown around intangibles is just that....some seem hung up on intangibles being evil.

Better to discuss is whether a $50m company (book value) deserves a market cap of nearly half a billion bucks

[Balance]

https://www.stuff.co.nz/business/opinion-analysis/124242079/monday-thoughts-my-food-bags-offer-is-food-for-thought

An ‘On the one hand but on the other hand’ opinion piece on MFB.

[nztx]

I don’t think theirs been any capitalising off market and promotional spend

It seems that goodwill etc has been created when My Food Bag Group ‘acquired’ My Food Bag Holdings when Waterman came on board (nztx mentioned this as well). Waterman obviously though what they paid was a good price - the goodwill etc just the difference between what they paid and MFB Holdings was worth on paper. Usual practice.

The amount doesn’t seem excessive in light of earnings and cash flow generation (after allowing for interest and jiggery pokers things PE companies use). Any company that acquires other companies has large intangibles - TRA, HGH, GXH etc etc

To me the emotion shown around intangibles is just that....some seem hung up on intangibles being evil.

Better to discuss is whether a $50m company (book value) deserves a market cap of nearly half a billion bucks


Any goodwill much on HLG's books ? - look where they're going ... ;)

The % of Intangibles to Total Assets is the issue IMO .. ;)

Current Assets / Current Liabilities - in any other world .. looks well perhaps Unwell - ask your friendly bank manager

Is it solvent (based on 30 September 2020 figures)

What are Solvency Tests for paying dividends ?

Perhaps the same for Equity Repurchase - Hello - By George dont say that ! ;)

At the same time - ask about Equity being withdrawn / bought back while the BS looks that way and paid for
out of new borrowing - with Negative NTA.. a large dallop of existing debt too ;)

[winner69]

Any goodwill much on HLG's books ? - look where they're going ... ;)

The % of Intangibles to Total Assets is the issue IMO .. ;)

HLG have never acquired anything so no goodwill ...maybe there was centuries ago.

If Winner Inc acquired them at a premium to current prices then there would be half a billion of goodwill booked by Winner Inc.

Turners doing OK with huge amount of intangibles eh

[nztx]

HLG have never acquired anything so no goodwill ...maybe there was centuries ago.

If Winner Inc acquired them at a premium to current prices then there would be half a billion of goodwill booked by Winner Inc.

Turners doing OK with huge amount of intangibles eh


MPG & EVO doing well too after a similar Smart Money hatchet job & years of pain following ? ;)

Wasn't Intueri another one ? ;)

Not to forget the the Carpet Outfit .. Feltex

[Balance]

MPG & EVO doing well too after a similar Smart Money hatchet job & years of pain following ? ;)

Wasn't Intueri another one ? ;)

Not to forget CAV

Don’t forget Orion Health & CBL!

[nztx]

Better to discuss is whether a $50m company (book value) deserves a market cap of nearly half a billion bucks


Good point too - $448 Million give or take what the market says

and that's after the pre-IPO extraction exercise in first half - what was it $5m or $6m Equity repurchase ? ;)


76.3% of Total Shares (after Cap Raise portion included) is being put on the block in this IPO



##### Me - I'm in the wrong business - how many ways can you turn a screwdriver to get paid big, each time .. ;)

[winner69]

Think short to medium term guys ...the opportunity is 20% and maybe even more gains...it will go to $2.35/$2.50

When share price goes below a buck is the time to say I told you so.