Jump to content
Boot

What does this mean? Can't Sell your Honey, Lets Talk!

Recommended Posts

On 23/03/2019 at 9:23 PM, dansar said:

Do sales drop during a Northern Hemisphere winter? Market stats will shed light on that.

Consumption of Manuka Increases in the Northern Hemisphere during their winter as it does in most regions.

Share this post


Link to post
Share on other sites

Comvita didn’t receive an expected repeat order from a North American client I wonder who filled that market and how much less they offered their honey for.

Share this post


Link to post
Share on other sites
35 minutes ago, frazzledfozzle said:

Comvita didn’t receive an expected repeat order from a North American client I wonder who filled that market and how much less they offered their honey for.

This is an interesting one and I am not sure of the motivation behind the original deal? I presume you are talking about Costco? They are an extremely good operator in the low value discount bulk end of retail. I am not sure why a 'Brand Leader' of a premium product would enter this channel and forever after position themselves at this end of the market? Particularly in a market the size of the US. 

I imagine the short term gain was considered worth it at the time? Possibly a lack of due diligence as well? Costco are very good at introducing a known brand to their channel and establishing a product line. Later the develop their own brand in the same space. This may be what has happened. 

  • Thanks 1
  • Good Info 1

Share this post


Link to post
Share on other sites

Earlier in this thread (and others) there was talk of forming a Honey Co-op and the pros & cons: for those interested, have a read of today's well-researched and written article by Brian Gaynor https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12219775

Yes, some will say that it's written about a different industry, but a lot of what's written is applicable to co-ops in general e.g.

"Co-operatives that have evolved into limited liability companies are generally more profitable and more successful" and

"Co-operatives have an inherent conflict between the desire of farmers to maximise their short-term milk revenue and the need for long-term investment in value-added products.

The high short-term milk payout argument usually wins and, as a result, dairy co-operatives have a strong focus on low-margin commodity products rather than high-value-added products."

 

Food for thought for those who are/were interested

  • Like 3
  • Agree 1

Share this post


Link to post
Share on other sites
1 hour ago, Rob's BP said:

Earlier in this thread (and others) there was talk of forming a Honey Co-op and the pros & cons: for those interested, have a read of today's well-researched and written article by Brian Gaynor https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12219775

Yes, some will say that it's written about a different industry, but a lot of what's written is applicable to co-ops in general e.g.

"Co-operatives that have evolved into limited liability companies are generally more profitable and more successful" and

"Co-operatives have an inherent conflict between the desire of farmers to maximise their short-term milk revenue and the need for long-term investment in value-added products.

The high short-term milk payout argument usually wins and, as a result, dairy co-operatives have a strong focus on low-margin commodity products rather than high-value-added products."

 

Food for thought for those who are/were interested

They’ve both borrowed  far too much money , arguably return no where near enough , have to sell, or sell assets to repay debt and have really solved nothing and aren’t fit for purpose this century . 

Scathing I know , but not the model to follow 

  • Agree 1
  • Good Info 1

Share this post


Link to post
Share on other sites

Hmmmm .

 

Here's another thought. I was talking with a neighbouring Bee Keeper at Bruce's CoOp get together last week. He made an interesting comment. " I am not so interested in Co Op's, but more,  Collectives."  Now I guess there is a subtle difference here. A Collective is a smaller entity who retain their independence and yet agree to combine their resources to present to the market a unified front.  Strength in numbers. The many streams of marketing.... that all flow into one ocean. 

  • Like 2

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...