The business has been bought by health and wellness company Me Today.
another operation sold, great time to get out gotta wonder whether the buyers have been sucked into the hype. Time will tell I guess .
They don't need beekeeping experience, they there to sell product and brand awareness, with their contacts perhaps they know a thing or to we don't, because we always thinking like a beekeeper and thinking about about bees.“Me Today director Stephen Sinclair will take on the role of King Honey general manager.”
wonder how much beekeeping experience he has
Maybe, like some buyers of Manuka Health, which has been sold several times, and Good Health, Me Today is there to make things good and make a capital gain rather than buy & hold for the long term. If for capital gain, then profitability isn't the bee all & end all.They don't need beekeeping experience, they there to sell product and brand awareness, with their contacts perhaps they know a thing or to we don't, because we always thinking like a beekeeper and thinking about about bees.
Perfectly put. At last. Someone thinking business and not just bees.They don't need beekeeping experience, they there to sell product and brand awareness, with their contacts perhaps they know a thing or to we don't, because we always thinking like a beekeeper and thinking about about bees.
Many business plans include start up periods of loss making. Depending on the business and the scale and end game planned for, this period could be considerable. As long as it is planned and financed accordingly, I do not see the relevance of the comment?Jarvis is a smart operator who already knew how to run a profitable business. Smart guys with insider knowledge also know when it's the right time to sell, and, how to jack the price. In this particular deal he certainly covered his bases every which way.
Me Today, well, let's just say they are running at a loss, and leave it there.
One thing in their favour, being in the "health and wellness" business, they may have inroads into that type of customer base, who will pay over the market for manuka honey.
This is a generalization of course. is the honey market tanking or just consolidating to what is an actual real market for a product out there.
Tanking is a massive generalisation. There are honey companies booming that can't produce enough, there are some that are static and some that are failing. Global honey consumption continues to increase. It is where you are positioned in the industry and market that determines whether you are tanking or not. It definitely is not everyone.True.
My own rough analysis is that based on the price paid it will be quite a few years of hard graft even to recover the purchase price. And of course with the honey market tanking, wether they ever recover the purchase price is mere speculation.
Scientia Sit Potentia you will no doubt recall a company from some decades ago called PC Direct. There are several parallels here.
PC Direct was started by 2 very young entrepreneurs at exactly the right time, when computers were a new and upcoming thing. The company went from nothing to huge in a very short time, and was a market darling. Right at the top, the directors sold it. Why? Cos they were insiders and understood market forces. All the same, the sale was hailed as a great success for the purchaser. Needless to say, PC Direct is no more.
Or perhaps you remember when Telecom sold the Yellow Pages.
Of course, there may be a strategic value in Me Today aquiring the business, it may meet demands they have for certain products, even if it will be some years before they actually make any money. It may be that which induced them to agree to the trems they have. However I speculate on that, not being in their board room I wouldn't know.
To "rob"our honeyHmmm ..... I see longterm opportunity but don't fancy climbing in ...... but probably should.
The market is bottoming out, confidence is low, the bubble has run out of steam.
Needs a lot of hot air to inflate again .... probably needs a Gvt reshuffle to tweak the standard to align crop with North Cape, Taranaki and the East Cape so that it complies with out blending to ensure the producermakes a return on his investment.
`I would suggest it might be a job for my young fellah .....
Hold the faith young man.
I the meantime ..... I am happy hibernating...... rising like a slothfull bear in the mid morning after a night on the homebrew, and snoozing again in the warmth of the late afternoon, awaiting for the sun to rise above the mid way zenith before I climb up into that saddle of those five hundred horses and feel the thrill of the rush as they as they pull on the hills of the Divide.
I wonder what the annaul turnover of 'Me Today' is. $36 mill sounds like a lot of money ..... but it might be a drop in the ocean
Hmmm ..... $1.1 m does'nt sound like a lot of revnue to go shelling out $36m on a honey co.QUOTE - "Total gross revenue of the company for the year was $1.5m. After deducting the value of marketing services provided by a customer, total group revenue was $1.1m, a 102% increase on the prior year.
The company recorded an operating loss of $2.9m, an increase of $2.1m on the operating loss of $0.8m recorded in the prior year. Sales are expected to escalate over the 12 months to 31 March 2022 as the company continues to execute the Invest and Grow strategy. Based on the new distribution agreements achieved in FY21 and traction to date, gross revenue for FY22 is expected to be at least $3m".