I am not sure you are taking Capilano's broad supply base that's pretty much nation wide into account, this season is better than the last couple of years, in which they were able to pass higher costs on, a little bit of tightness in the market is good for capilano, it keeps competitors supply base low and stops a lot of private label discounted product entering the market.
Capilano's Allowrie and smiths imports can fill a gap in the market when supply is tight, and the remaining Aussie honey will get good margins due to lack of discounted competition, to much honey supply leads to discounted private labels and bulk packs, and low margins, you want the sweet spot in the middle, and I think that's where we are at the moment.
CZZ Price at posting:
$22.99 Sentiment: Hold Disclosure: Held
