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BFC, BESTON GLOBAL FOOD COMPANY LIMITED
nipper
post Posted: Nov 22 2017, 03:41 PM
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QUOTE
Beston Global Food Co is eyeing a spin-off of an anti-counterfeiting and big data technology business able to track food products that it has built up in conjunction with its core food operations. The OZIRIS technology enables tracking of customers buying food products and verifies food authenticity and provenance through labelling technology, and may head towards an Asian stock exchange.

More outside food companies are seeking to tap into the growing demand for security of supply chain, and the analytics on who is buying products at which outlets, and their feedback. But those user companies are baulking at Beston itself collecting the data, and prefer an "arms length" arrangement, and that is why Beston chairman Dr Roger Sexton said a spin-off was being pursued.

"I think the Asian exchanges are the best fit because that's where the global technology companies are playing," Dr Sexton said after the company's annual general meeting on Wednesday.

Dr Sexton declined to specify the value of the Beston Technologies business. Deloitte had undertaken a valuation of the Beston Technologies arm to use as a benchmark after the parent company had received an unsolicited offer from a global firm to buy it out. That was rejected on the basis they were trying to pick it up on the cheap.

Negotiations are currently underway on a potential merger with a separate outside technology company and due diligence was being carried out by both parties. Nothing had been finalised. Dr Sexton said even if that merger proposal didn't proceed, the Beston board had decided it needed to be divested to harness the full breadth of potential customers....
Read more: http://www.afr.com/business/agriculture/be...e#ixzz4z8VpwEKJ

- was always going to be an issue, as was scale/ customer loyalty. BFC is basically a second tier dairy company, and that sector is a hard space to play in.





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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 1 2017, 10:26 AM
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• Strong sales growth, particularly from Dairy business with solid momentum in second half

• Significant investments in infrastructure capital and growth initiatives for long term value creation:
- procuring a state-of-the-art mozzarella plant
- re-commissioning of hard cheese line to produce parmesan and other varieties
- investments in farming operations to improve productivity
- Substantially expanding milk supply to underpin future earnings growth


• Earnings results impacted by
- capital and infrastructure investments,
- lower milk availability in H1,
- investment in own brand development entry into the Australian market and
- lower than expected sales in China as per previous market advice

– net loss of $7.7 million in FY 2017

• Robust financial position maintained – BFC has no debt
never quite got the issues sorted



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Mar 1 2017, 01:44 PM
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finally, some good news - up 20% (to under half it was 8 mths ago!)
QUOTE
BFC advises that it has signed a Supply Agreement with the Chongqing Hondo Food Company Limited, a part of the Hondo Group headquartered in Beijing, China, with a total supply contract value of RMB 120 million (approx. AUD 22 million) for BFC products.

The Supply Agreement comprises a range of products manufactured by BFC, either at its wholly owned factories or the factories of its investee companies. Shipments of products in the initial purchase order will start immediately and is expected to be substantially completed over the next eight months.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Apr 11 2016, 08:35 AM
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Beston has entered into contracts to acquire 51% of South Australian water business, AQUAEssence.

AQUAEssence is a producer of premium quality bottled water and has been supplying the domestic Australian market since 1998. It is natural spring water that has been naturally filtered for thousands of years through the limestone caves that connect the pristine underground aquifer systems surrounding the Blue Lake in Mount Gambier with access to an abundance of water resources.

In announcing the acquisition, the Chairman of BFC, Dr Roger Sexton, said that AQUAEssence had a number of unique quality and supply attributes which made it a perfect fit with the corporate strategy of BFC to take healthy food and beverage products to the worlds growing communities:
• AQUAEssence water is a naturally high alkaline spring water which is sourced from the pure underground aquifers of Mount Gambier.
The water has a natural pH of 7.9 compared with most spring waters in Australia which have a pH of 6.0 or less.
• AQUAEssence owns the rights to over 140 million litres of water per annum. Currently, only around 1% of this resource is utilised each year by AQUAEssence.

Dr Sexton said that alkaline water is regarded by a number of health experts as having powerful antioxidant properties. It is thought that alkaline water combats and lowers the acidic conditions in our bodies caused by modern diets and helps maintain a healthy, disease fighting system. These experts believe that alkaline water passes through body tissues more efficiently than acidic water and therefore provide superior hydration and nutrition at the cellular level.

that's their story. Sexton noted that the chemical composition of AQUAEssence water was very similar to "San Pellegrino" and "Evian" water, two of the largest selling bottled waters in the world.

Many consumers in China currently purchase home water ionizers to produce artificial alkaline water in their homes, in order to get the health benefits of drinking alkaline water.

Sexton said that AQUAEssence is a very strategic acquisition for BFC and will add to the product range in its health and nutrition division. The acquisition of the 51% interest is on a net asset basis for an amount of $AUD875,300 - to be met from retained funds.

- so the strategy is to sell into China , by piggybacking on distribution, with OZIRIS giving authentication?

SP on Friday 38c -> 42c before this was announced.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Apr 1 2016, 01:41 PM
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Beston has signed a Manufacturing and Distribution Agreement with Chinese company Hondo Agricultural Company for the production, marketing and distribution of its range of allergen free, ready-to-eat meat meals in China.

QUOTE
Chairman of BFC, Dr Roger Sexton, said that the Agreement was an important stepping stone for BFC in building its presence in important consumer markets in China. Notwithstanding the ChAFTA Free Trade Agreement, Australia is not permitted, under Chinese import regulations, to export processed meat products to China”, he said, “We have been working with Hondo for some time, together with Chinese and Australian authorities, to find a way of taking our “no numbers” (i.e. no preservatives, no colourings, no artificial additives) range of meat products in the BFC portfolio to consumers in China who are increasingly looking for healthy, nutritious, high protein foods for their families”.

The ready-to-eat meat meals will be sold to the retail and food service sector in China under the “Yarra Valley Wholesale Meat” brand owned by BFC investee company, Scorpio Foods.

The CEO of BFC, Mr Sean Ebert noted that the Agreement with Hondo will enable Scorpio to export frozen boned out meat to China for transformation into ready-to-eat meat meals in Hondo’s existing facilities in Henan province. Scorpio will provide the recipes for the meals under a proposed licence to Hondo.

The proprietary sauces and other key natural ingredients in the meals will be supplied by Scorpio to Hondo for manufacturing of the final products under technical and QA supervision by Scorpio”, Mr Ebert said.

Under the terms of the proposed Licencing Agreement, Scorpio will earn a royalty on its intellectual property in addition to earning revenues on its sale of raw materials and fees for services rendered. BFC will provide Chinese consumers with product provenance and anti-counterfeiting verification on the products with its patent pending OZIRIS and Brandlok technologies.

Hondo will be responsible for marketing and distributing the products through its existing distribution network and established customer base. Hondo is targeting to manufacture and distribute 15,000 tonnes of Scorpio’s “Yarra Valley” products in the first full year of operations and 20,000 tonnes in the second year.
its not easy



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Mar 29 2016, 07:33 AM
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In Reply To: mme's post @ Feb 5 2016, 01:16 PM

speaking on the sidelines at the Global Food Forum in Melbourne, Beston Global Food Co chairman Roger Sexton believes Australia has under-invested on the "demand side", or consumer end, of the agricultural sector with advancements in technology now offering huge opportunities for growers and food manufactures to command premium prices for their produce.
QUOTE
"When we set up our company we wanted to empower consumers so they could see what was in our food, see the ingredients, track and trace, and see where it came from and assure themselves it was safe to eat and the food hasn't been counterfeited."

"We looked around the world for a technology for this but we couldn't find one so we developed our own and that is OZIRIS."

"Already (Chinese) shoppers are voting with their wallets and buying imported food because they think (it) is safer than Chinese food, so Australia and New Zealand are well placed in that regards".

"But this OZIRIS app provides them with the added surety they can actually check it is an Australian product and hasn't been counterfeited and they can see all ingredients. With our cheese they can see where the milk has come out of the cows, what was added to the milk to make it cheese where it was shipped out of Australia, shipped to Shanghai, and all along the supply chain."

"With that can come pricing power, so Australian food producers have to differentiate in the marketplace so they can get pricing power and get to be a price maker rather than price taker, which is starting to happen."




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

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mme
post Posted: Feb 5 2016, 01:16 PM
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In Reply To: nipper's post @ Feb 5 2016, 08:51 AM

Nice summary. Forgot to mention it assets are apparently an equivalent share price worth around 70 cents from memories! The link with all those items is what the Asian markets are all after and pay top dollar for! biggrin.gif

 
nipper
post Posted: Feb 5 2016, 08:51 AM
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In Reply To: kura's post @ Feb 5 2016, 07:42 AM

what to like about BFC
- invests in a selected portfolio of food and beverage businesses, and related assets, in Australia and globally.
- Beston Pure Foods ~ dairy; a2 milk,cheese etc, seafood, meat plus 'wellness' nutritional product range in development .
- a China strategy and end-to-end authentication of product OZIRIS
- With OZIRIS the seal can be read by the consumer at the point of purchase to verify the product's authenticity.
- The new technology will be critical for Beston after it last year signed a $23.4 million deal with Chinese retail giant Dashang Group to sell premium Australian dairy, meat, seafood and health food products in 150 cities across China.
- Dashang, which owns 7000 supermarkets and gourmet food outlets across China, also agreed to take 14.9 per cent of Beston shares offered in the float. Beston is now a preferred supplier to Dashang for all Australian food and beverages
- Joint Venture with the Sunwah Group in Hong Kong for the marketing and distribution of BFC food and beverage products in Hong Kong, Macau and certain parts of Southern China. Chairman of BFC, Dr Roger Sexton said that the arrangements "filled a gap" in the company's Asian distribution platform.
-

And the negatives
- can question the unrelated nature of its various assets (the Beston Pure Food brand and part-owned brands Paris Creek dairy, meat producer Scorpio Foods and Ferguson's seafood) and the lack of a track record of its management in running the businesses it acquired in the lead-up to the float.
- In June, it contracted to buy both the Jervois and Murray Bridge milk plants in South Australia out of the receivership of processor United Dairy Power, which went into administration in April.
- Unfortunately, the Receiver had allowed the factory export licences to lapse which meant that we had to start from scratch in building the case to the Commonwealth Department of Agriculture and AQIS for a new Export License.
- Unfortunately, a lot of plant maintenance and factory upgrading work which should have been done years ago under the previous ownership had to be done by BGFC in order to gain the new licence.

- Beston's assets are also managed by a management company, Beston Pacific Asset Management, which charges Beston fees.
(for much of the past three years, BGFC was not in a position to pay market rates to bring on the staff it needed. This is one of the key reasons that the Company was set up with an external management fee structure. Virtually all of the employees in the BGFC have come on board at around a third to half of the salaries that they were earning in their previous roles. remuneration arrangements that have been established under our external management structure aligns the interests of our management and staff with our shareholders so that they get rewarded when our shareholders get rewarded.)

and biggest negative - it has already run hard. Nice to own from sub 40c. Hard to buy more until it reports



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: kura  
 
kura
post Posted: Feb 5 2016, 07:42 AM
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In Reply To: nipper's post @ Feb 4 2016, 08:48 PM

I recall looking at this company before Christmas, but deceided to leave them alone, mainly because I didn't like the way their investments were via convertible notes.

Happy to change my mind, if anyone can do a decent sales job on them.

 
nipper
post Posted: Feb 4 2016, 08:48 PM
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In Reply To: mme's post @ Feb 4 2016, 07:20 PM

yep, it's good to be interested in shares that have positive attributes, a future, even



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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