From today's DomPost/Stuff.
http://www.stuff.co.nz/business/opin...o-Moas-decline
Printable View
From today's DomPost/Stuff.
http://www.stuff.co.nz/business/opin...o-Moas-decline
Thanks for posting the link.A good article .
Too much weight was placed on the success of 42 Below. Truth is that if you got in at the beginning of that IPO, you made an IRR of 15% pa - hardly inspiring for a start up and where the promotors like Ross & Baker put in bugger all.
Ecoya and Moa show marketing and PR will only take you so far in the real business world.
I blame the NZ media and the young naive pimpled faced reporters falling for the old 'wine and dine' fascination with so called successful entrepreneurs.
Anyway, Ross and his gang have now got their work cut out trying to make Ecoya and Moa profitable. Until then, cannot see them taking any more of the public's capital to fund their 'ideas'.
Maybe next project is teaming up with Derek Handley?
Very good article in a period where press releases are passed off for journalism! They are gone - might be a slow death but contracting out brewing while holding your brand out as a craft beer is an oxymoron. Another company spending money raised for bricks and mortar on operating expenses....
Great article.Quote:
They need to realise you can't do a 42 Below on craft.
Geoff Ross is doing another AMA. Send in your questions:
http://www.nbr.co.nz/ask-geoff-ross
Just had a skim through the annual report. Looks exactly as many had anticipated except perhaps for inventories. They seem to be accumulating materials and product at a rate much higher than one would reasonably have expected even give the higher sales volume and collapse in margin on their product. However give their situation and history you’d be very hesitant to read that positively. I can’t attest to the quality of this refreshment, my personal preference is for a sturdy drink.
Of course I’d love to be in on this industry but have a strong aversion to losing money. Still too early to judge if this can be turned around or when in my view.
Inventory is an asset - for MOA it is broken down into three parts (Note 14):
Raw materials: $611K - stuff that we can use to make beer;
Work In Progress: $387K - stuff that we are turning into beer now (at 31-Mar) [+ other direct inputs into production];
Finished goods: $935K - stuff that is beer.
There just have to find away of making a profit as a company.
Best Wishes
Paper Tiger