bal is back, page-56

I'm in Sydney and have seen the same thing, also at local pharmacy. This is good & bad, good in that demand for these products in high and the new ranging at coles is performing above plan. Bad in that sales are being lost due to no stock on shelves.

I'm looking for strong growth in food sales at the H1 release. FY15 was about $15mill, expecting that to be $35mill + FY16. Coles has increased ranging significantly and Bellamy's food products are regularly promoted on special now. 9 different food pouch products (120g) + porridge, custard & rice x 776 stores adds up. Bellamy's have been smart to back Coles as this is where people are shopping and smashing woolies day in day out...(even if they had a whinge about price rises).

You can also get Bellamy's food items at Target, Big W, Toys r Us (35 stores) , Baby Bunting (33 stores), Costco, Chemist Warehouse (300+ stores) and 1000+ Pharmacies and food shops (IGA, FoodWorks). What else is left? It's a great foundation and it's good to know BAL have their own sales team on the ground looking after the brand and kicking goals.

Let's not forget the Tmall site, where food products can now be ordered direct. From the looks of it baby rice and milk rusks are the main items purchased. My Calcs show $100k + food sales through Tmall this month. Margin is excellent as baby rice retails for about $10.50 a packet via Tmall as opposed to about $4 in Australia.