Chemist Warehouse is making some interest moves. In February last year, they struck a similar deal with ASX listed BWX, owner of Sukin and other brands. Front page of the BWX annoucement below and BWX shares down around $2.20 at the moment.
Woolworths and Coles all do private labels, which normally impacts negatively on their branded suppliers. I wonder if Chemist Warehouse doing deals with the likes of MCP and BWX is their version of creating a private label as they now have a vested interest in pushing sales of the brands that they have been given millions of dollars in shares in?
IMO, MCP are desperate to replace the volume that they lost when their sales into China collapsed and this is the path that they have chosen.
I don’t own MCP but I do own BWX.
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