KDY 0.00% 2.7¢ kaddy limited

Here's some perspective amongst the histrionics going on here on...

  1. 1,177 Posts.
    lightbulb Created with Sketch. 288
    Here's some perspective amongst the histrionics going on here on HC.

    

First, read this:

    https://theshout.com.au/mountain-culture-beer-co-rolls-out-wholesale-expansion-with-kaddy/

    To summarise those that won't bother reading, it's an early May new release explaining how Mountain Culture have expanded their production and at the same time, have chosen Kaddy to manage distribution.

 So who are Mountain Culture?


    Some... small upstart!? Well not really.


    Let's take a look in more detail.

    ---
    Since its foundation in 2019, Mountain Culture Beer Co. (located in Emu Plains, Western Sydney) has enjoyed extraordinary success. In 2020, Beer and Brewer named Mountain Culture Australia’s ‘Best New Brewery’.
    ---

    "Extraordinary success" I hear you say. What does that mean.... 2000 cases per year!? We need to quantify for it to be meaningful.
    So what? 
Let's look further....


    ---
    “Now we’ve opened the second brewery, our production capacity has increased to a level that supports our trade growth plans, and we see Kaddy as the perfect wholesale partner to help bring more Mountain Culture beer to thirsty Australians.”
    ---

    Great.... but with no figures, let's assume 10,000 cases per year!? A boutique operation.
    Easy to dismiss this story until we dig a little deeper! Let's go....

    Pick yourself the Autumn 2022 copy of Beer and Brewer (I know I know.... you're read it already!).
    Then why didn't you post this....

    https://hotcopper.com.au/data/attachments/4421/4421300-fad9dfb861ff22eb437983cea0771fa8.jpg

    Specifically... these pages:

    https://hotcopper.com.au/data/attachments/4421/4421307-1b2dbb7a565b1f4f72a6e076423a839f.jpg

    Let me detail the most interesting part:

    ---
    Now, as Mountain Culture ramp up production from an average 10 hectolitres a day at the original Katoomba brewpub to 10 times that amount down the road in Emu Plains.
    ---

    So now we have some figures.
    Mountain Culture doing ~100 hectolitres per day (10,000 litres per day)
    We see the standard case is 16 x 500ml cans. We can say a case is 8 litres.
    10,000 / 8 = 1,250 cases per day x 300 (let's be conservative on days per year) = 375,000 cases.

    So.... we could then safely assume that Mountain Culture are a ~350,000 case per year supplier.

    And that figure is conservative as they will grow continually now that they use Kaddy to help build the brand through a much easier "route-to-market". A lot on here a missing the point and are not looking at 2-5 years down the track. One order, one invoice.... it won't be long and Kaddy will become the defacto platform for any supplier wanting growth through better distribution and route-to-market.

    Plenty more detail and stories like the one above- just takes some research.
    Enjoy the long weekend- have a beer!


 
watchlist Created with Sketch. Add KDY (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.