I sold out in Feb after 2 years. I lost patience, and was concerned with their strategy. Upon seeing yesterday's announcement, I'm glad I did! The only positive in this story is the name Yowie. For the nostalgic, it will be a fleeting moment of joy to either personally re-engage or to give to their child.
The negatives are horrendous! $3.60 in Big W/K-Mart which are failing retailers. $5.00 at the local servo for 1....yes 1, 25gm piece of chocolate. I can go to Woolworths or Coles and purchase 2 blocks of Cadbury range (400gm's) for the same price! The toy sounds okay, but I can purchase a Freddo frog for 50c and go and purchase my child lots of other options with the remaining $4.50!
The market leader Kinder Surprise retails for between $2-$2.50 (grocery) & $3.00-3.50(P&C). Mums and kids know it, and trust it...and they release exciting license campaigns. Sorry, but Yowie doesn't even come on the radar at that price with next to no marketing budget. Imagine buying for 2 kids...or worse still +3! Not happening.
I don't have a personal vent with Yowie, but I have a major concern on their strategy which shareholders should rightly challenge. I'll bet you this was not Trish Fields dream. If she was honest, I'll guarantee you this was never her vision of an Australian re-entry...not in a million years.
Every aspect of this relaunch into Australia has been absolutely horrible, from a weak marketing campaign, vague distribution strategy (they don't even have direct control of distribution for goodness sake!) and an overpriced American Chocolate. I can only hope they get the solution right in the US, as they have completely trashed a heritage brand on relaunch into Australia!
YOW Price at posting:
43.0¢ Sentiment: Sell Disclosure: Not Held
(20min delay)
