SVR - Savor Ltd (Formerly MOA)

[value_investor]

"Late March" summer trading update, effectively due out today. Hopefully above the $8m mark in revenue.

Nothing in March to that effect released at all. Not a good sign, I'm sure if they had huge news they'd be huffing and puffing about it. Hopefully I get proven wrong.

Disc: not a holder

[Peitro]

Pulling apart the press release - Launch of Mobev

This all opens the door wide open for a capital event with Constellation Brands, Inc NYSE: STZ $45Bil USD


Personally stoked with the teaming of sales portfolio with Ballast Point, one of the premier craft brewers in the world. Hope this means I can get fresh Sculpin down at the local New World in the future!

[Subway]

Pulling apart the press release - Launch of Mobev

This all opens the door wide open for a capital event with Constellation Brands, Inc NYSE: STZ $45Bil USD


Personally stoked with the teaming of sales portfolio with Ballast Point, one of the premier craft brewers in the world. Hope this means I can get fresh Sculpin down at the local New World in the future!

I'm really surprised you see this as good news. Ballast Point is already stocked in all the majors, infact Constellation brands feature heavily in all the major chains.

The way I read this is Moa's sales team has failed (again) and they've essentially outsourced this to Constellation.

They lost Parrot Dog, and it doesn't mention the Lewis Road range which I assume they've lost as well.

Nice way to polish a turd.

[LAC]

The Bakery boys will polish up this one pretty well in the next few months/years now that they have let go of Trilogy, they will find a buyer eventually. They have been successful at doing it with other ventures, no doubt this one will do the same. They will look at the cheapest way to boost sales and get the brand out there, no use reinventing the wheel, best use people who already have the reach.

[Peitro]

This deal makes the best of both worlds, taking in the learning's of past mistakes. This deal marries both close over watch and the benefit of scale.

As you say Subway, constellation brands feature heavily in all the major chains, now the 'accessible craft' offering is there to go with it.

[Subway]

I disagree. Moa has no unique selling point, the beer is average, and the independent craft breweries that the big guys want to acquire simply aren't interested in Moa.

They keep crafting the narrative about their "size" and careful use of independent brewery, given the composition of the market now I wouldn't even put Moa in the Premium category let alone Craft.

[Subway]

I dont think you quite get the NZ market. Moa is already in the same stores. This is nothing more than a reshuffle.

Moa still haven't addressed their pricing, they might be the largest "independent" brewery in sales, but they constantly discount in the Heineken/Steinlager $20 a doz segment, whereas their opposition are charging that for a 6 pack.

[glennj]

I disagree. Moa has no unique selling point, the beer is average, and the independent craft breweries that the big guys want to acquire simply aren't interested in Moa.

They keep crafting the narrative about their "size" and careful use of independent brewery, given the composition of the market now I wouldn't even put Moa in the Premium category let alone Craft.

Moa seems to have marketing hype but I'd say it was being kind to call their attempts at craft beer average! At one stage I was going to invest heavily in Moa but changed my mind after travelling to Marlborough for a brewery tour and tastings there. I also bought product for tastings from various wholesale outlets and got drinker friends to give their opinion of free samples I gave them. IMO and that of my friends Moa product quality doesn't stack up against the premium craft beers and Moa's "industrial" mass market lager which sells more cheaply than most of their other product does not distinguish itself against the competition in this class. For these reasons I decided not to invest in Moa. They are up against it in NZ with their current product range and pricing!

[steveb]

Moa seems to have marketing hype but I'd say it was being kind to call their attempts at craft beer average! At one stage I was going to invest heavily in Moa but changed my mind after travelling to Marlborough for a brewery tour and tastings there. I also bought product for tastings from various wholesale outlets and got drinker friends to give their opinion of free samples I gave them. IMO and that of my friends Moa product quality doesn't stack up against the premium craft beers and Moa's "industrial" mass market lager which sells more cheaply than most of their other product does not distinguish itself against the competition in this class. For these reasons I decided not to invest in Moa. They are up against it in NZ with their current product range and pricing!

Hi Glenn,were your drinker friends a good cross section of the NZ population? You have to remember NZ's ethnicity is changing fast.For example the chinese like a beer or two,but they would not drink Lion red for example it is to sweet for them.

[Subway]

Hi Glenn,were your drinker friends a good cross section of the NZ population? You have to remember NZ's ethnicity is changing fast.For example the chinese like a beer or two,but they would not drink Lion red for example it is to sweet for them.

With all due respect when it comes to alcohol chinese focus on branding and perceived status, not taste.

For instance, Penfolds Grange is wildly popular in China, not for the taste, but for the prestige, and the perceived value based on how much they paid.

https://www.smh.com.au/world/chinese...16-gzmnh3.html

Moutai is a great example as well, its popular because its expensive and prestigious.

As for MoBev, the presser states its focused on Australian and NZ markets, not China.

As for a cross section of NZ, Moa needs to improve its margin on its product range, craft beer has high input costs (more ingredients hops etc), if you're selling your high input costs 12 pack for $20 and your competitor (Tuatara, Panhead etc) are selling theirs for $35-$40 a doz, then are you really positioned right?