From a business marketing prospective in FMCG - Promoting constantly in independents. (Metcash, IGA, Ritchies etc...) affects the profitability substantially. It costs money to have catalogue and cover promotional off locations etc. Given the volume return is NOT the same as the big companies.
I play the independents space only because Coles and WW move the volume I can afford to spend extra with indo's to drive alternative channel growth - This is not the main revenue stream. It's supplementary. Coles + WW are main revenue stream.
G2N is very important in FMCG and share holder value. As your company is privately owned, your situation is much different and you can afford to choose as you don't need to report earnings and have your share price affected by said results. But, for what QBL is trying to achieve Coles and WW are a must. Independents will NOT produce the volume or profit required to keep us share holders happy.
QBL Price at posting:
5.1¢ Sentiment: None Disclosure: Held
