At what price did MGC win that contract from Bega? Barry and Bega board would have a pretty fair idea. I think Barry is indicating they went to hard in their pricing. I'm a BGA supplier and shareholder, I wasn't overly concerned losing this contract . You simply can't make money out of Coles and Woolworths.
It will be interesting to see how Blackmores go introducing new baby formulas to the market, house wives love the old brands that have the runs on the board. They will take along time to win over here in Australia. Exporting to Asia might be an easier nut to crack, but you have to win regulatrory approval to supply infant formulas to China, would be interesting to know how that is going.
I don't think its sour grapes more like recognition of stupidity on MGC behalf.
The Blackmores contract to Bega is just one piece of a large wheel. We will get a price cut for next years milk but we won't have to pay back money on milk already supplied.
MGC Price at posting:
$1.01 Sentiment: Hold Disclosure: Not Held
