Longtable Group (LON)
Here’s a breakdown on the Laura McBain(Ex Bellamy’s CEO) lead Company focused on Premium organic diary products
Market Cap -$80m
Cash - $7.5
Paris Creek Brand
Acquisition of 100% of Paris Creek Completed which is now the cornerstone of operations.
Product
-A real competitive advantage to Paris Creek is that its supply pool makes it Australia’s 2nd largest source of organic milk. Outstanding relationships have been built to encourage, support and grow organic and biodynamic dairy farms locally
-Paris Creek is estimated to control 20% of organic raw milk in Australia from 9 farms and plans in place to grow this
-Paris Creek was a multiple winner at the 2018 Royal Agricultural Society of NSW cheese and dairy products.
These products recognised with awards included
-Australian cheeseboard, perpetual trophy.
Cheese, semi hard and eye cheeses.
Cheese, mould ripened, to contain white mould.
White milk, homogenized.
Modified milk, reduced or low fat.
Cheese, semi hard and eye cheeses.
Cheese, mould ripened, to contain white mould.
Fresh unripened cheese with no added flavor.
Pure cream, no additives.
Growth
-Paris Creek’s growth has been constrained by factory capacity, with retailers and consumers indicating demand for further products. To meet this demand, the company recently upgraded their processing capacity from 10 million litres to approximately 30 million litres per annum
-Paris Creek Maintains
Solid sales history with Coles, Woolworths, Aldi, Metcash and other independent stores, primarily in SA
-Significant distribution growth opportunities, including:
-VIC/NSW: only 20% exposure to markets with highest grocery spend and largest population
-South Australia: strong existing brand recognition, but only 35% exposure and room to grow especially in independents
-Infancy(THATS A CRYPTIC MESSAGE) stages for export growth with appropriate licenses in place to export to China.
Brand name has strong appeal and potential to grow into new categories
New Product Development
-There are a NUMBER of product extensions and NEW PRODUCTS that are envisaged
Some of these products are in early stages of product development and WE WILL LOOK AT THESE AS A PRIORITY TO BUILD FUTURE GROWTH
-We will look to continue to build supply from existing milk suppliers and leverage the goodwill in the relationships that have been forged to encourage new farmers to convert to biodynamic-organic
-Long term, we will consider further vertical integration
Exports
-With the CNCA licence in place, and the demand for healthy, organic, Australian products in CHINA and other part of Asia, export will be a key platform for development.
This will include a sales and marketing strategy for these locations.
Investment in Maggie Beer Products
-Maggie and the MBP team are focused on building strong brand credentials and creating a profitable, sustainable business delivering high quality foods suitable for everyday use and entertaining
– Successful pop-up store at Chadstone delivered excellent brand exposure and
positioning in the months leading to Christmas
– Increased co-operation with major supermarkets for new product opportunities beyond those already planned
– Review of ingredient sourcing to deliver improved profits
– Review of organisation structure to deliver long term performance
– Ranging of Maggie Beer ice cream on Etihad and Qantas
-Potential synergies between Maggie Beer and Paris Creek being reviewed
Key Priority for H2 2018
-Exploring new opportunities to expand the Longtable portfolio of products and brands
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