Not so sure I completely agree, but take your point on export risks and margin impacts. thanks for your post.
I too am impressed with their online content, and agree re whiskey club, they will mostly only offer their base range (Symphony and Cask Strength) through there... or the 100m bottles of the rare stuff for $150... ? haha.
They can do one off offers at a higher price point, which they have done in the past i think, cant recall what it was and what price point.
Re export and pricing - Take Bellamys milk powder, they were havinga lot of stock moving into China through Deigos, they decided to cut them out, and went direct into asia and cut their pricing to drive volume all in one step, then no one in china wanted to buy it as they thought it wasn't premium anymore. This is 90% branding and perception IMO. If it is selling here, in our little market at these prices, why wouldn't it sell at similar into a market multiple times the size, with vast wealth.
I would see them looking at executing a predominantly online strategy, it is working very well here, and the world is going online anyway. Would outsource this and give up a little bit of margin for selling expenses. IF LRK retains ownership of the whisky and it is just an execution arrangement, a third party wouldn't need to invest in the inventory, so Lark would still acheive a better than wholesale margin whish would be a great win, and they retain control of the
Could also have one very exclusive retail distribution deal, on a 12m rolling contract with a premium liquor merchant.
And get some Lark into some very exclusive restaurants and venues in the Middle East and China. they'd jump all over it. I mean its not uncommon for them to thrown down +$500 on a 250g wagyu steak at these venues... Yum!
LRK Price at posting:
$4.82 Sentiment: Buy Disclosure: Held
(20min delay)