I fear Aldi will nail HUO (keep them alive but the margins will...

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ozner31

177 Posts.

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18/03/21

15:05

Post #: 51869896
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Originally posted by Bullrush007: ↑

Packaged and or Frozen...I'm guessing not over the counter but RSPCA Approved

Haven't seen much in my Aldi but....

'We've picked up a fair bit of smoked product into one of the major retailers. We've also picked up about 1/3 of the total deli business in Australia, which was a significant win for us. And then also, we supply close to 60% of ALDI's salmon products as well. And as you rightly pointed out, the MAP tenders are coming up, and we're just in the process now of going through those tenders

Well, those contracts are in negotiations at the moment, but probably 3 years, 5 years, depending on where the pricing ends up. ALDI's is an annual contract. So it's a little bit of a balance. While the prices are low, they obviously want to extend those contracts. And -- but for us, we need to look at the returns over the 3- to 5-year period and see if we're happy with that'BUT the 'expenses and salaries' vs 'receipts' is just REDONK...with those numbers, Covid19, reducing demand, reducing prices, increasing logistics costs, etc is the least of your problems!!!!

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I fear Aldi will nail HUO (keep them alive but the margins will be tight). Aldi has all the cards, HUO are long salmon, short shelf space and weak balance sheet. Basically a price taker.
It didn't need to be that way, management knew they were ramping up production and didn't put much emphasis on branding and how and where to place the salmon. Just relying on the wholesale market wasn't a strategy.

HUO Price at posting: $2.50 Sentiment: None Disclosure: Held
4 Upvote

0 Great analysis

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