TSI (ASX) Ann: Rapid Insights

Originally posted by baldynumbers: ↑

I agree with your statement that they are chasing the everyday aussie... V8 supercar sponsorship gives a pretty good indication of the target.

I am still on the fence though - while i agree that there needs to be relatable brands at the lower end of the price range per bottle... it will market well to its target audience and the only reviews I have read on this product are that it needs to be drowned in coke. Australias whiskey scene already has some reputable brands (Lark, Nant, Starward, Limeburner, Hellyr Road) and there are plenty of craft gin distillers also diversifying into the product...(archie rose, 23rd street, kangaroo island) - IMO - you need quality to succeed here... I have tried AR's attempt and found it wanting.

For me - their whiskey is a drink to get smashed... rather than to enjoy product (all IMO and without tasting it) and as such I don't see it having a high customer retention... should go OK with Vodka taking the same approach - but the Australian gin scene... I doubt will work - plenty of good quality product out there already... with a good craft industry also

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Thanks for your thoughts. Yes I think it is clear they aren't looking to compete in the premium space - and agree customer retention will be important. However if they can drive enough first time triers from their marketing campaigns, then the retention rate doesn't need to be as high (higher the first time triers numbers the lower the retention rate needs to be to hit critical mass of return drinkers).

They are releasing some limited release batches, would be interesting to see reviews, and test those products - this wont generate the volume then probably wont make the real $$ anyway, is good for a bit of marketing etc and expanding their market - margins will be better in these batches .

I am yet to try the RTD, will pick some up now I am back in town (Brisbane) as I couldn't find any at the small BWS up the sunshine coast the other week (they had never heard of it). Might take time to make its way north, and the shop assistant was commenting that they had a very small display fridge.

They did also confirm that they were discontinuing some lines on the spirits shelf in that particular store to make way for new products (they had as much Gin on the Shelf as Whiskey and Rum combined, Gin was where they were discontinuing the most lines by the look of it maybe some of the really crafty drops, maybe the peach, macadamia and truffle infusion wasn't selling so well... Joking, but there were alot. (all just speculating though).

All jokes aside. If there is an issue with the end product maybe a review of the process / head distiller etc to improve the end product is required (I have read the reviews too, that Ned Isn't great in its own right, but perfectly fine in the RTD or mixed). If the branding can resonate and the price is right, and they hit a bit of the Aussie made sentimentality no reason it cant work, and see some serious volumes. There is just a bit of lead time to it all in the whisky space with the storage/maturation requirements. Hence why I don't mind the gin and vodka approach for cashflow.. Same issue re quality etc here too of course.

I think I'm happy to accumulate on weakness to about 25k shares and let it sit for the 2-3 years.

As always DYOR - and if you have found the product in store and tried it, please post experience.

Cheers.