This has been discussed on these threads (granted there is a lot that has been discussed and Tarvold can provide excellent responses if you just look through his posts). Paul Hyslop has stated that they give too much margin away by stocking in shops. I think it was an interview he did with Alan Kohler of the Eureka Report. Check it out or perhaps the person who originally posted could repost for newcomers to better understand the strategy.
Hope this helps.
Ann: Zoono Signs Significant Exclusive Distribution Agreement, page-82
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