Ever since I become an investor in this company at around the $12 mark and after reading many posts on here, I have been keenly going to supermarkets in my local area to see if the shelves were stacked with Bellamy's. To my surprise, I noticed that the first two Coles supermarkets I went to had empty shelves along with apologies for the price rise. However, on Sunday I went to the stud park Safeway in Rowville and noticed that there were 30 cans of Bellamy's on the shelf and at least 100 cans of a2 platinum. So my question are. Is this store not been targeted by Asian buyers or is the demand for these formulas being over-hyped? Does the price of a product reach a point were people are willing to try a cheaper alternative which in turn slows the demand for that product. In other words, at 28 dollars a tin for Bellamy's and 32.95 for a2platinum and a lot more for inflated tin prices on tmall and a other Chinese websites, do buyers finally say enough is enough and seek cheaper alternatives? With Woolworths now selling direct to china are they cutting out all the middle men and women and under cutting their resale prices hence reducing demand from these type of buyers. They might sell more to china direct but with the price rises are they going to be selling less in Australia hence slowing demand for their products at home. Has the current shortage in these products forced local buyers to seek alternative products and therefore turned them off Bellamy's. These are interesting times for a company that is growing quickly. Do they have the capacity to manage their growth without alienating their consumer base with lack of supply and price rises. Interested to see what others think.
BAL Price at posting:
$14.47 Sentiment: Hold Disclosure: Held
