1 00:00:05,080 --> 00:00:06,520 Speaker 1: This is what the flux. 2 00:00:06,600 --> 00:00:08,520 Speaker 2: I'm Brett and I'm Justin and it's a Hunday the 3 00:00:08,640 --> 00:00:09,480 Speaker 2: sixteenth of February. 4 00:00:10,039 --> 00:00:12,120 Speaker 1: The tickets to the FIFA World Cup in the US, 5 00:00:12,200 --> 00:00:14,800 Speaker 1: Mexico and Canada have kicked off for the June July 6 00:00:14,880 --> 00:00:17,520 Speaker 1: World Cup. And get this one, more than five hundred 7 00:00:17,680 --> 00:00:20,639 Speaker 1: million ticket applications have been launched for a total of 8 00:00:20,920 --> 00:00:24,120 Speaker 1: just six million tickets. And the scalping is kicked off, 9 00:00:24,120 --> 00:00:27,720 Speaker 1: with some tickets already being resold for over three hundred 10 00:00:27,720 --> 00:00:29,760 Speaker 1: thousand bucks. Hard to believe, but this is going to 11 00:00:29,800 --> 00:00:30,240 Speaker 1: get ugly. 12 00:00:30,280 --> 00:00:31,920 Speaker 2: You've really got to love your soccer Roos for three 13 00:00:32,000 --> 00:00:35,400 Speaker 2: hundred grand b Man Fox am. With Valentine's Day just 14 00:00:35,479 --> 00:00:38,840 Speaker 2: passing over the weekend, Ozzie splashed out over five hundred 15 00:00:38,880 --> 00:00:41,400 Speaker 2: and fifty million dollars. We break it down in the 16 00:00:41,440 --> 00:00:44,400 Speaker 2: Flex app, how much Ozzie spent on average and why 17 00:00:44,440 --> 00:00:46,559 Speaker 2: everyone's spending this year. If you want to learn more 18 00:00:46,560 --> 00:00:49,040 Speaker 2: about how much people are spending on Valentine's Day, make 19 00:00:49,040 --> 00:00:50,880 Speaker 2: sure to download the Flex app and check it out. 20 00:00:50,920 --> 00:00:54,680 Speaker 1: Three excellent stories today Juzzi Boy, Let's do it for 21 00:00:54,840 --> 00:00:58,920 Speaker 1: our first barbecues Galore has entered receivership as liquidity issues 22 00:00:59,040 --> 00:01:02,880 Speaker 1: leave Australia's begs the barbecue retailer fighting for survival. 23 00:01:02,440 --> 00:01:04,040 Speaker 2: The one stop shop for barbecue be Man, don't know 24 00:01:04,040 --> 00:01:05,760 Speaker 2: where I'm going to go anymore, so tell me what's 25 00:01:05,760 --> 00:01:06,240 Speaker 2: going out here. 26 00:01:06,280 --> 00:01:09,279 Speaker 1: So barbecuess Glaw was founded in Sydney in nineteen seventy 27 00:01:09,280 --> 00:01:12,200 Speaker 1: seven and has grown into Australia's biggest barbecue and outdoor 28 00:01:12,200 --> 00:01:13,120 Speaker 1: furniture retailer. 29 00:01:13,160 --> 00:01:15,840 Speaker 2: We're talking sixty eight company own stores and twenty seven 30 00:01:15,880 --> 00:01:17,360 Speaker 2: franchises around Australia. 31 00:01:17,440 --> 00:01:20,080 Speaker 1: You want a four burner beast that could cook for 32 00:01:20,120 --> 00:01:22,480 Speaker 1: the entire cricket club, they have got you covered. 33 00:01:22,520 --> 00:01:24,319 Speaker 2: You want to smoke it? That takes twelve hours and 34 00:01:24,360 --> 00:01:28,200 Speaker 2: three YouTube tutorials, Samassa step right this way to Barbecues Glaw. 35 00:01:28,040 --> 00:01:30,520 Speaker 1: Mm hm and Josey Boy Barbecues. Glaw has had a 36 00:01:30,520 --> 00:01:31,520 Speaker 1: bit of a checkered history. 37 00:01:31,600 --> 00:01:33,840 Speaker 2: Yeah. Listed on the ACEX, then be listed, then listen 38 00:01:33,920 --> 00:01:37,760 Speaker 2: again on the NASDAK before the us ARM went bankrupt 39 00:01:37,840 --> 00:01:40,959 Speaker 2: during the GFC. It was then bought by Ironbridge Private Equity, 40 00:01:41,000 --> 00:01:43,920 Speaker 2: who then sold it to another private equity, Giant Quadrant, 41 00:01:43,920 --> 00:01:46,560 Speaker 2: who basically gave the keys to its Lenda Gordon Brothers 42 00:01:46,640 --> 00:01:48,360 Speaker 2: last year for almost nothing. 43 00:01:48,080 --> 00:01:51,720 Speaker 1: And now Barbecues Glaw has entered receivership after struggling with 44 00:01:51,800 --> 00:01:53,560 Speaker 1: ongoing liquidity challenges for b Man. 45 00:01:53,680 --> 00:01:56,480 Speaker 2: The business is now up for restructure or sales after 46 00:01:56,680 --> 00:01:59,280 Speaker 2: years and years of attempts to find new buyers. 47 00:01:59,520 --> 00:02:02,080 Speaker 1: So there's still a little chance of a sizzle in 48 00:02:02,160 --> 00:02:03,880 Speaker 1: Barbecue Galaw's grill. 49 00:02:04,000 --> 00:02:05,360 Speaker 2: So what is the key learning here? 50 00:02:05,440 --> 00:02:08,600 Speaker 1: When a business keeps changing hands, it can quietly ruin 51 00:02:08,760 --> 00:02:09,919 Speaker 1: its long term strategy. 52 00:02:09,960 --> 00:02:13,200 Speaker 2: Think about private equity firms and lenders and turnaround specialists. 53 00:02:13,200 --> 00:02:16,320 Speaker 2: They all have different time horizons and different goals when 54 00:02:16,320 --> 00:02:17,280 Speaker 2: they acquire a business. 55 00:02:17,360 --> 00:02:20,040 Speaker 1: YEP. One owner might focus on expansion, the. 56 00:02:20,040 --> 00:02:22,119 Speaker 2: Next owner might focus on cost cutting. 57 00:02:21,840 --> 00:02:23,520 Speaker 1: The next might simply want to sell out. 58 00:02:23,880 --> 00:02:26,120 Speaker 2: And the constant reset can make it hard for the 59 00:02:26,160 --> 00:02:29,440 Speaker 2: company to invest in brand and culture and customer loyalty 60 00:02:29,480 --> 00:02:30,160 Speaker 2: over the long run. 61 00:02:30,200 --> 00:02:32,520 Speaker 1: And while Barbecue's Glare was the number one player in 62 00:02:32,560 --> 00:02:35,519 Speaker 1: the premium barbecue market with around thirty eight percent market share, 63 00:02:35,560 --> 00:02:37,120 Speaker 1: it wasn't enough to turn a profit. 64 00:02:37,200 --> 00:02:39,600 Speaker 2: Now it's annual loss it was over sixteen million dollars 65 00:02:39,639 --> 00:02:41,000 Speaker 2: before tax in twenty twenty four. 66 00:02:41,120 --> 00:02:43,919 Speaker 1: And four point seven million dollar loss in twenty twenty three. 67 00:02:44,040 --> 00:02:46,400 Speaker 2: But but man, the current owners are hoping there might still 68 00:02:46,440 --> 00:02:48,880 Speaker 2: be a little bit more sizzle in this barbecue. For 69 00:02:49,040 --> 00:02:51,920 Speaker 2: our second story, Revel has seen the premium coffee boon 70 00:02:52,000 --> 00:02:54,680 Speaker 2: grow its revenue pass at one point one billion dollars, 71 00:02:54,800 --> 00:02:58,360 Speaker 2: even after the tariffs keep its profits flat. Those pesky 72 00:02:58,480 --> 00:03:01,359 Speaker 2: tariffs will not stop that, They just won't. So what's 73 00:03:01,400 --> 00:03:01,880 Speaker 2: going on here? 74 00:03:01,919 --> 00:03:02,000 Speaker 1: So? 75 00:03:02,040 --> 00:03:04,680 Speaker 2: Breve was the ASX listed appliance makeup that was actually 76 00:03:04,720 --> 00:03:07,200 Speaker 2: found in Australia back in nineteen thirty two, but it 77 00:03:07,280 --> 00:03:09,280 Speaker 2: really took off when it became famous in the nineteen 78 00:03:09,320 --> 00:03:12,920 Speaker 2: seventies for inventing the sandwich toaster. But now it's also 79 00:03:12,960 --> 00:03:16,040 Speaker 2: behind high end espresso machines and toasters and a whole 80 00:03:16,120 --> 00:03:17,760 Speaker 2: range of kitchen gear too, and joysy. 81 00:03:17,560 --> 00:03:20,120 Speaker 1: Boy, Brevel takes its appliances very seriously. 82 00:03:20,160 --> 00:03:20,480 Speaker 2: Mind you. 83 00:03:20,560 --> 00:03:22,560 Speaker 1: It has a toaster for over six hundred bucks that 84 00:03:22,639 --> 00:03:25,760 Speaker 1: uses a sensor to judge your toasts crispiness. 85 00:03:25,919 --> 00:03:28,680 Speaker 2: Wow. And clearly, bman, people are valuing this stuff. Because 86 00:03:28,680 --> 00:03:31,520 Speaker 2: Brevell just posted a record ten percent jump in revenue 87 00:03:31,560 --> 00:03:33,680 Speaker 2: to over one point one billion dollars for the first 88 00:03:33,680 --> 00:03:34,840 Speaker 2: half of this financial year. 89 00:03:34,960 --> 00:03:36,920 Speaker 1: What was the winning appliance here? 90 00:03:37,160 --> 00:03:41,240 Speaker 2: Fancy coffee machines for the homebabman double digit growth. Baby Yeah. 91 00:03:41,320 --> 00:03:44,000 Speaker 1: Brevell earned over ninety eight million bucks in net profit 92 00:03:44,080 --> 00:03:46,400 Speaker 1: for the half, which was about in line with last 93 00:03:46,440 --> 00:03:46,960 Speaker 1: year's result. 94 00:03:47,000 --> 00:03:48,440 Speaker 2: I got a little bit though, I'm a little bit 95 00:03:48,480 --> 00:03:50,600 Speaker 2: surprised there was no jump in their net profit. So 96 00:03:50,880 --> 00:03:51,600 Speaker 2: whino jump. 97 00:03:51,640 --> 00:03:54,400 Speaker 1: Well, Brevll got really caught up in Trumpies tariffs for 98 00:03:54,480 --> 00:03:55,920 Speaker 1: products that are made in China. 99 00:03:56,560 --> 00:03:59,320 Speaker 2: So for now they've paused on its aggressive growth strategy 100 00:03:59,480 --> 00:04:01,920 Speaker 2: to focus on those pesky peski tariffs. 101 00:04:01,960 --> 00:04:03,280 Speaker 1: So what's the key learning here? 102 00:04:03,360 --> 00:04:06,640 Speaker 2: The best growth strategy is often knowing what not to do. 103 00:04:06,800 --> 00:04:09,400 Speaker 1: Over the past few years, Brevell has been expanding into 104 00:04:09,480 --> 00:04:12,840 Speaker 1: newer markets like Mexico and China, South Korea and the 105 00:04:12,880 --> 00:04:13,840 Speaker 1: Middle East, and. 106 00:04:13,760 --> 00:04:17,640 Speaker 2: The temptation would be to continue aggressively pushing into new markets. 107 00:04:17,680 --> 00:04:20,719 Speaker 1: But Brevell decided to pause on this international expansion. But 108 00:04:20,920 --> 00:04:22,080 Speaker 1: not because it wants to. 109 00:04:22,160 --> 00:04:25,240 Speaker 2: Nope, because it's focusing on another major strategy. 110 00:04:24,760 --> 00:04:28,080 Speaker 1: First operation shift manufacturing away from China. 111 00:04:28,760 --> 00:04:31,040 Speaker 2: You see me, man, Brevel cop more than forty million 112 00:04:31,040 --> 00:04:33,920 Speaker 2: dollars in tariffs on the US sales because their products 113 00:04:33,920 --> 00:04:34,600 Speaker 2: were made in China. 114 00:04:34,720 --> 00:04:37,520 Speaker 1: But by December eighty percent of its US gross profit 115 00:04:37,680 --> 00:04:39,760 Speaker 1: was being manufactured outside China. 116 00:04:39,839 --> 00:04:42,119 Speaker 2: That is a huge shift in a very short period. 117 00:04:42,200 --> 00:04:45,480 Speaker 1: So clearly Brevell is choosing to protect profitability first and 118 00:04:45,600 --> 00:04:48,559 Speaker 1: de risk its supply chain before expanding further. 119 00:04:48,640 --> 00:04:50,960 Speaker 2: And they're hoping that the next phase of expansion will 120 00:04:51,000 --> 00:04:52,279 Speaker 2: be from a stronger base. 121 00:04:52,800 --> 00:04:56,480 Speaker 1: For our third and final story, Kraft Hinds has scrapped 122 00:04:56,480 --> 00:04:58,760 Speaker 1: its plan to break up and is betting six hundred 123 00:04:58,839 --> 00:05:01,760 Speaker 1: million bucks that are turn around tastes better than a split. 124 00:05:01,880 --> 00:05:04,080 Speaker 2: Nothing like an on again, off again relationship for companies. 125 00:05:04,120 --> 00:05:05,760 Speaker 2: B Man started to sound like a bit of a 126 00:05:05,800 --> 00:05:07,839 Speaker 2: Hollywood drama, So tell me more. 127 00:05:07,720 --> 00:05:10,359 Speaker 1: All right. So, Kraft Times is a global food company 128 00:05:10,480 --> 00:05:13,080 Speaker 1: that was created actually in twenty fifteen through a merger 129 00:05:13,120 --> 00:05:15,120 Speaker 1: between Craft Foods and Heinz. 130 00:05:15,240 --> 00:05:18,479 Speaker 2: Craft Foods obviously the maker of Kraft Macaroni Cheese, Philadelphia 131 00:05:18,520 --> 00:05:20,160 Speaker 2: Cream as well as Orio. 132 00:05:19,960 --> 00:05:22,960 Speaker 1: Well Hines is obviously the maker of the famous ketchup 133 00:05:23,000 --> 00:05:25,960 Speaker 1: baked beans as well as Golden Circle here in Australia. 134 00:05:26,040 --> 00:05:28,800 Speaker 2: But be Man, after a decade as a committed family unit, 135 00:05:28,839 --> 00:05:31,839 Speaker 2: Craft Times announced plans last year to split the company 136 00:05:31,839 --> 00:05:34,479 Speaker 2: into two. The idea was to separate the fast growing 137 00:05:34,560 --> 00:05:38,720 Speaker 2: condiment business Hello Heinz Ketchup Yes, from the struggling grocery 138 00:05:38,760 --> 00:05:40,839 Speaker 2: brands Hello Craft Singles. 139 00:05:41,160 --> 00:05:44,440 Speaker 1: Yes. But since announcing the split, things have actually gotten worse. 140 00:05:44,560 --> 00:05:48,200 Speaker 2: Yeah, the grocery sales have deteriorated even further. And now 141 00:05:48,320 --> 00:05:50,440 Speaker 2: the new CEO has hit pause on the d merger. 142 00:05:50,560 --> 00:05:53,080 Speaker 1: Instead of carving the company up, Craft Times will now 143 00:05:53,120 --> 00:05:56,320 Speaker 1: invest six hundred million bucks into marketing and sales and 144 00:05:56,440 --> 00:05:58,480 Speaker 1: R and D to try bring back growth to the 145 00:05:58,520 --> 00:05:59,560 Speaker 1: Craft Singles and co. 146 00:06:00,240 --> 00:06:02,359 Speaker 2: So rather than cutting out the companies, it's planning to 147 00:06:02,440 --> 00:06:03,560 Speaker 2: turn this baby around. 148 00:06:03,680 --> 00:06:04,800 Speaker 1: So what's the key learning here? 149 00:06:04,839 --> 00:06:07,800 Speaker 2: A turnaround strategy is what companies do when performance is 150 00:06:07,839 --> 00:06:09,960 Speaker 2: deteriorated and growth has stalled, and. 151 00:06:10,080 --> 00:06:13,360 Speaker 1: Jes BOYD typically involves one or more of three levers. 152 00:06:13,400 --> 00:06:15,080 Speaker 2: The first is cutting costs, the. 153 00:06:15,040 --> 00:06:17,719 Speaker 1: Second is about repositioning the brand, and the third is 154 00:06:17,800 --> 00:06:20,480 Speaker 1: investing in growth. Now, in this case, the grocery sales 155 00:06:20,480 --> 00:06:23,160 Speaker 1: are so weak that splitting the companies up would result 156 00:06:23,160 --> 00:06:25,760 Speaker 1: in one successful and one failed brand. 157 00:06:26,520 --> 00:06:28,679 Speaker 2: Yeah, and then, man, we know that breakups work best 158 00:06:28,720 --> 00:06:31,320 Speaker 2: when both companies are healthy. So the new CEO of 159 00:06:31,360 --> 00:06:33,960 Speaker 2: Craft Times is leaning into investment now so that when 160 00:06:33,960 --> 00:06:36,799 Speaker 2: they eventually split out, they're not creating one thriving company 161 00:06:36,839 --> 00:06:39,440 Speaker 2: and one problem child. Mm hm fux AMM. We've broken 162 00:06:39,440 --> 00:06:41,520 Speaker 2: down the numbers of Valentine's Day and and in the 163 00:06:41,600 --> 00:06:43,520 Speaker 2: latest article in the Flux app, we break down the 164 00:06:43,600 --> 00:06:46,560 Speaker 2: average span of men and women on Valentine's Day. So 165 00:06:46,600 --> 00:06:48,440 Speaker 2: if you want to see how you stack up against 166 00:06:48,480 --> 00:06:50,960 Speaker 2: every other Australian, make sure to check out the Flux App. 167 00:06:50,960 --> 00:06:55,240 Speaker 1: Thanks for listening and we'll see you on Wednesday.