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0.9¢ broo ltd

The retail margin is about 30% currently on beers that aren’t...

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Rodwell86

172 Posts.

8

21/08/20

12:24

Post #: 46716820
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Originally posted by Farnarkling: ↑

PerfectAnalysis - time for some quick maths.

Assume a case (24 bottles) costs $30 from CUB at this scale of production (including excise).
Let's say it sells at-retail for $45 (including GST), so $40.50. That leaves $10.50 to be shared between the retailer and BEE.
Assume the retailer gets half and BEE gets half - that's $5/case or $0.21 profit per bottle.

Assuming they sell 192,00 cases in one year, that's about $950,000 in gross profit. Subtract your expenses, and there's your net profit, if any.

As I said in my earlier post, it's a bold move. Margins are thin in retail, even more so when you're paying someone else to make it. Given the original thesis was to have their own production to reduce cost and control quality, it feels like it's back to the future. Michael J Fox would be proud - can someone bring the DeLorean to the door, please. We're heading to 2017.

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The retail margin is about 30% currently on beers that aren’t mainstream. Be lucky to see $2 a carton profit per case.

BEE Price at posting: 2.2¢ Sentiment: Hold Disclosure: Not Held
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