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Re: BLUEVOODU post# 12970

Tuesday, 02/28/2017 10:40:29 AM

Tuesday, February 28, 2017 10:40:29 AM

Post# of 26773
I suspect the product sold thru walmart will NOT have it's quality compromised but MIGHT have separate supplemental branding on the cans or bottles. I'm sure walmart did get "a deal" but since this is a unique product I expect the ginger beer sales will still be profitable for ROX. Expect the gross profit margins to get pinched a bit as sales to walmart ramp up. We will more than make that up in volume. I'd say way more.

It is possible that after a year or so, walmart might try to introduce a generic ginger beer to see if they can increase their (walmart's) net margin and perhaps cannibalize some goslings sales. To the extent that we can introduce Goslings rum at Walmart and Sam's stores that will be great, but we do not know that we are not already there. Having the rum is a support for sales of the genuine goslings ginger beer.

DISCLAIMER: All I say is just IMHO and does not construe investment advice. My wife informs me frequently that I know nothing and I say you should trust no one on the internet.

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