Mum and Dad shareholders in “My Food Bag” have now lost 90% of their investment from when this company was floated on the share market a few years back.
That’s no surprise. As I wrote at the time, the float was not for new capital which it didn’t need, but instead for the bailing out of the then founding shareholders.
No-one sells a good thing and that was an obvious red flag signal.
8 Comments
You would have been better off buying a meat pack from the local butcher.
Indeed. This IPO was particularly cynical. Their celebratory ambassador netted a cool $15M.
Their product offering is diminishing and hard to believe that they will actually survive. Their website requires a pilot’s licence to navigate as they try and lock the unsuspecting in to future deliveres. Supermarkets all offering prepared meals and meal packs – not just the local butcher – and you can order online on the day from the supermarket not two weeks ahead. Such a lot wrong with how this business works and it might have been first cab off the rank but as you say Sir Bob the founders could see the writing on the wall and the smart sharebroker promoters glossied it all up.
Totally agree, but I do like their meals. I do all the cooking – and I can’t be bothered finding new things to make – they do it for me.
this reply from my marketing guru Sister ,,,
They have had a lot of internal culture issues, but I think people bought the shares without really thinking that there might be more competition coming to NZ. There are other food box companies globally who are doing quite well
Their CEO left and the marketing director also “resigned” but I think she was pushed out. So they have a new CEO as well,
MFB had to upgrade all their operations to deal with their growth which I think is now done that means a better customer choice so should get better, but with the cost of living not a lot of people are doing that sort of thing as much as they did during covid, it’s a bit of a luxury when supermarkets can also deliver to your door.
That’s what Simon Henry was on about in his criticism of the company’s performance last year. He got vilified as a mysogynist and maybe could have taken a different approach but his point was right, it was about style over substance.
Simon Henry got it about right!
Simon Henry may not have been diplomatic, but he was absolutely correct. Anyone with half a brain could see that at the time. The ignorant bollocking he got from our mainstream media resulted in his company delisting from NZX. It’s now ASX only instead of a dual listing. Our loss I reckon.