Comvita - CVT

[Balance]

Rampant discounting of manuka honey out there still and no signs of abating.

Sold my CVT shares when I saw UMF10+ (Egmount Honey) manuka honey being discounted down to $29.95 (1 kg jar) at Costco this year.

Comvita's advertised price is $84.99 for a 500g jar!

The alarm bells rang loud and I am pleased I listened to them!

And Costco is still selling seemingly unlimited amount of manuka honey at heavily discounted prices!

Latest is Puriti UMF10+ manuka honey 1 kg jar for $34.99.

Compare that price with Comvita's UMF10+ at $114.90!

Sp has a long way to fall - like its manuka honey pricing.

Ouch!

[william67]

Look at the positive side when Sp came to this low.
David Banfield (Group CEO) said “We remain confident that our business model, premiumisation of the Mānuka honey category and long-term investment in our brand, puts us in a strong position once macro-economic conditions stabilise. We continue to maintain or grow share in our core markets, and we see premium retailers in the US and Middle East turn to Comvita as the only brand committed to growing the category with two new high-quality partnerships confirmed for H2. We remain committed to deliver cost reductions in H2 to protect our earnings and are forecasting a further reduction of debt and inventory in H2 supported by positive operating cash flow.” "The team and I are absolutely focused on doing everything possible to ensure a return to our pattern of consistent long-term growth”.

[william67]

Costco could sell manuka honey with their own name like the pams of PAK'nSAVE

[Balance]

Costco could sell manuka honey with their own name like the pams of PAK'nSAVE

They could but they are not.

They are doing a good job helping NZ producers clear stock currently.

[william67]

See's Candies of Warren Buffet tell us what is the power of branding. No Brand, chocolate is a commodity.

[william67]

With price war, the manuka honey industry will go nowhere.

[william67]

Without branding power, the fate of Egmount ,Puriti, whatever names is under the mercy of Costco. Sam's club in China sell Manuka honey with their own name for a period time, turned out it doesn't work, today Sam's club in china only carry Comvita manuka honey.

[mike2020]

Im going to disagree. Comvita priced themselves out of reach for many. The cheaper products were nothing I couldn't get for half the price at a local market. Turnover still matters.

[william67]

Every time when we buy a white bread or one bottle of milk, we have to make a choice from different names. A2 Pams tip top vogel's Molenburg?

[william67]

Nike is not going to target everyone as their potential customers.