Member log in

SUBSCRIBER-ONLY POLL RESULT: What will it take to turn Moa around?

NBR Business Pulse Results

What will it take to turn Moa around?:
More money from major shareholders (16%)
The proposed brewery expansion (13%)
Rebrand (13%)
Better flavours (13%)
Board refresh (14%)
Nothing –its a dead duck (31%)

Most NBR member subscribers in a recent poll are unconvinced by options NBR ONLINE has put forward to turn Moa around.

Member subscribers were asked to pick from six ways management could turn the craft beer business around after a difficult week where shares plunged to their lowest. 

On Wednesday Moa was labelled “unappealing” by Forsyth Barr due to disappointing sales, a shrinking cash pile and slow growth in offshore markets.

Pioneer Capital, which owns 24% of the company, and The Business Bakery, on 23%, have provided Moa with a letter of commitment to provide financial support

By Thursday shares plunged to almost a third of its listing price. The NZX-listed stock touched a record low of 40c, well below its $1.25 listing price.

Of six options, most poll participants – 31% –  felt nothing could be done to turn the craft beer business turnaround.

The next biggest proportion – 16% - said more money from major shareholders was needed.

A smaller number, 14%, suggested a board refresh was needed.

Three other options, the proposed brewery expansion, a rebrand, and better flavours all picked up 13% of participants’ votes.

Comments and questions

Maybe its gonna come down to a beauty sale which needs to happen soon before the brand gets even uglier.
Coca Cola, DB or Independent? (assuming Lion is happy with Emersons). Opportunity Cost?

Independent has no money. They've done a big spend up over the last few years and suing pep for 500m for indendent sale.
Db spin against moa in tui ads and they say their monteiths is their craft beer and wouldn't want to undervalue it with a trump craft beer.

There's isn't a lot of buyers full stop. And with the troubles in the market place it will be a vulture sale if at all. 42c? 42 below... Oh the irony.

If the beer is not selling at profitable levels never will.
The directors have a responsibility to close it down and return the remaining cash to shareholders. Clearly they cannot make it work and wasting the remaining cash on fat salaries and fees is cyniical at best

They won't want to sell it just yet.
They still have a pile of other people's cash to burn through.

Reputation is priceless.