Let’s talk about resolution 6.
- First of all, it’s a special resolution, so requires 75% of votes to get it over the line.
- We know it got voted down last time with a vote against (imo out of spite) from JG/VC
- This time VC/JG hold much less so a great chance to get it approved, but every vote counts!
- Here is what the Company had to say in its notice of meeting:
Change of Name: The Board proposes changing the Company’s name to Halo Food Co. Limited. The proposed new name more accurately reflects the strategy and growth trajectory of the business as we pursue a diversified proprietary brand strategy in the health and wellness sector, while importantly maintaining our existing core brands - Key Dairy, Tonik, Super Cubes and Omniblend.
Following an extensive process with leading marketing and branding experts, the Board believes the proposed new name accurately reflects the activities of the group and the branded strategy which the Company is pursuing through both organic and non-organic opportunities. The name change is a critical piece in the strategic roadmap of our long-term success and is fully endorsed by the Board.
More information in support of the change was included later in the notice. To me the second half of (c) is key:
- Seems like a bit of a no brainer really?
- It’s what the marketing/branding experts are advising the best course
- A critical piece to ensure the long term success
Effectively, the name change will more actively describe the Company’s activities and therefore should attract more investment.
NAME CHANGE = MORE DEMAND FOR SHARES
More demand for shares means higher SP
Given MOST of the negative comments are around the decline in SP, this seems like a no brainer decision here?
(a) as the Company continues to diversify its revenue and earnings base towards the fast growing health and wellness sector (both domestically and internationally), the proposed Company name will operate as a standalone holding company brand name to house the existing brands of the Company and accurately reflect the strategy of the Company;
(b) the Company’s existing brands include the dairy focused KeyDairy, manufactured in New Zealand, for which the Company will continue to manufacture, distribute and sell in core markets, including China, alongside continued investment in the brand equity of KeyDairy which has been built to date. The additional brands of Super Cubes, Tonik and Omniblend will remain and continue to be invested in as they form a key component of the Company’s diversified health and wellness strategy. A considerable amount of investment has been made in the brand equity of all of the Company’s brands and these brands will continue to be distributed and sold under their own respective brand names across existing and prospective new channels;
(c) the Board believes the proposed name change more accurately reflects the ‘House of Brands’ structure and strategy which the Company has been pursuing for some time. The Board further believes the benefits of a diversified strategy towards a broader health and wellness company away from a perceived ‘pure play’ dairy company are clear, whilst maintaining the Company’s dairy heritage as a core division of the House of Brands strategy. Given the additional listings of dairy related entities on the ASX in recent times, there is increasing competition in the dairy sector for investor attention, on market buying of securities and growth capital for future opportunities (where required) and the Board believes the proposed name change will further broaden the appeal of the Company, accurately reflecting its strategy; and
(d) there is increasing demand for broader health and wellness products and a growing trend towards plant-based proteins which the Company is already pursuing under its existing brands. As communicated by the Company in the past, it continues to look at the acquisitions of fast growing, attractive proprietary brands with a unique point of differentiation in the health and wellness space on an opportunistic basis and the proposed name change and house of brands model is a logical structure for the pursuit of the Company’s strategy.
Have a look at some of the other “diversified food” companies and their valuations.
OVERALL a bit of a no brainer vote here for me.
What do others think?
TT
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- Change of name: Halo Food Co Limited
Let’s talk about resolution 6. First of all, it’s a special...
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