The distributer, of which we own half, simply takes a margin. If BFC sells a lobster to Newco for $50 and Newco then sells to a retailer for $70, the retailer then sells to the punter for $100. BFC get $50 and half the p&l of Newco. The retailer gets $30.
Now I have no idea of the real %'s involved and I doubt we will ever find out but it all seems perfectly reasonable to me. We have the product, they have the distribution capabilities. Better we do it this way than just simply use a distribution company.
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