Ann: Change of Director's Interest Notice, page-2

Another serious buying by one of BRG's independent directors, Lawrence Myers.

This time, it's 25,000 shares for $223k.

Over the past 12 months, he had spent a not so trivial amount of $738k buying BRG shares.

His holding balance is now 200,000 shares.

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7
0	Date	Name	No. Shares Before	Buy # Shares	Buy $ Amount	Buy Average Price	No. Shares After
1	26/02/2016	Lawrence Myers	110,000	20,000	$147,455.68	$7.37	130,000
2	02/03/2016	Sally Herman	15,000	5,000	$37,702.00	$7.54	20,000
3	26/08/2016	Lawrence Myers	130,000	30,000	$245,728.43	$8.19	160,000
4	26/08/2016	Steven Fisher	70,288	12,000	$97,860.00	$8.16	82,288
5	26/08/2016	Dean Warwick Howell	110,000	10,000	$81,300.00	$8.13	120,000
6	26/08/2016	Timothy Michael Antonie		20,753	$170,185.90	$8.20	20,753
7	23/11/2016	Sally Herman	20,000	5,000	$43,793.61	$8.76	25,000
8	13/12/2016	Catherine Jane Wright		5,000	$41,829.26	$8.37	5,000
9	14/12/2016	Lawrence Myers	160,000	15,000	$121,796.88	$8.12	175,000
10	14/12/2016	Steven Fisher	82,288	10,000	$82,210.69	$8.22	92,288
11	24/02/2017	Lawrence Myers	175,000	25,000	$223,189.71	$8.93	200,000

---

On the HY2017 result presentation, BRG gave a preview of the upcoming launch of the next generation espresso machine, Breville Oracle Touch.

Apparently, the launch of this product has been moved forward by 6 months.

The evolution of Breville's flagship espresso machine that started with the Dual Boiler, which is then followed by the Oracle, continues with this machine.

As can be expected, the RRP of the new machine has also increased.


The Dual Boiler's RRP is $1700 (comes with free Smart Grinder Pro).
The Oracle's RRP is $2600.
The New Oracle Touch's RRP is $3500.


Jeff Clayton's strategy of turning Breville into the Dyson's equivalent of kitchen appliances is well and truly underway.

It is also worth noting that even after the latest flagship product has been released, Breville continues to sell the older generation's versions. This strategy completely imitates Apple's playbook which clearly works in practice.

Harvey Norman has started selling this on its website:

http://www.harveynorman.com.au/kitc...breville-the-oracle-touch-coffee-machine.html

----

To summarise, these are BRG's strategies going forward:
- Continue developing aspirational flagship products that are the market leaders in their respective segments.
- Faster product design and development cycle
- Increased investment in R&D and marketing
- Enter new markets (using either Breville or Sage brands) and widen its market reach
- Transform the supply chain model to drive further efficiency gains

After posting relatively flat profit growth for 4 years, I believe BRG is about to enter the next phase of its growth.