Marani Brands Inc. (MRIB)

[Matthew Berg]

The name of the game is sales and being on the shelf is an important part, moreover; the more shelves you are on the better. This is another piece of the puzzle.

Quote:
They cover their cost with the slotting fee and if it sells, it sells.

If it sells profit is made and additional sales follow.This is called a successful business model and the reason why they are putting it on the shelf and why this is very good thing for Marani. Pretty basic and a milestone at the same time. I choose to see it as a positive event and from an optimistic point of view as opposed to alternative. Very few companies are successful overnight, but rather in steps like this milestone for Marani.

Yea, not quite the way it works. To be profitable it has to sell through and sell through in big numbers or it gets pulled in favor of the next in line holding out a slotting fee. Shelf space is calculated on return per sq. inch. Believe you me, they cover their backside with the slotting fee. Just being on the shelf means nothing without marketing and advertising support and MRIB has none whatsoever and their price is totally uncompetitive. They might as well put ten cases out on Margrit's front lawn with a sign saying "cheap vodka for sale". If you can't draw destination customers to the store it doesn't do anything. Let's say you like Gatorade. You go shopping and see a new brand at twice the price of your old brand. Are you going to buy it just because it's on the shelf? I don't think so.

Shelf space is less than a quarter of the game. There's someone who claims to have bought $2000 in Marani for the last fiscal year. If true that represents more than 30% of their total sales! One guy! And he only knows about it from being involved in the stock. Sorry. I don't think you quite understand the consumer product model. There's a lot more involved than putting it on the shelf and waiting to see if it sells.