1. Blended EVOO (no vintage EVOO with different taste) 2. Mass market oriented 3. Australian market Brand = RedIsland => blended EVOO • Brand market penetration • Brand awareness • Brand recognition • Brand scaleable (sunflower, canola oil see Costco)
Brand = Njoi => regional EVOO (currently not promoted?!)
Weakness
1. Company highly indebted (800 TAUD interest yearly) 2. Management reacts slowly to market changes e.g. 10/11 selling prices high <-> market share down <-> operating loss 3. Global market penetration 4. Orchard management • MIS structure (bad debts: growers don’t pay their bills) • Orchard yield (EVOO purchases)
Opportunities
1. Regional expansion (China, Taiwan, Japan, South Korea) 2. Currency fluctuation => AUD weakens 3. EC olive oil subsidies reduced or cancelled (EC debt crisis) 4. Successful AOA promotion of quality EVOO • Aussie supermarkets go for local quality EVOO and reduce EC imports • Aussie government introduces quality check for all olive oils sold in Australia
Threats
1. Worldwide overproduction 2. EC olive oil subsidies no change 3. Currency fluctuation => AUD strong 4. Further increase of EC olive oil imports -> cutthroat competition
Bullet point
To produce olive oil only money and patience is needed => worldwide overproduction To sell olive oil with a reasonable operating profit a lot of brain and know how is needed => few companies
RLA Price at posting:
1.2¢ Sentiment: None Disclosure: Held
