I had a look over the weekend as well and it sums up Beston for me:
- the innovative new product actually isn't that innovative - Mainland were already doing something very similar at a much lower price.
- their costs are too high resulting in selling prices being too high. The previous owners of the manufacturing facility went out of business due to the same problem, only they sold their product at market prices which failed to recover costs.
Beston does need to make the Woolies product work though as there is little margin selling the product in bulk, which is where the majority of the volume goes.
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