I see that the bubbles have recently burst on the con job that is Moa beer.
Having last October described its New Zealand distribution deal with Treasury Wine Estates as “the perfect partner to super-charge growth”, the company came out last week and blamed TWE for its failure to hit the prospectus sales volume target of 195,100 cases this year.
The shortfall would be big, 30 per cent, implying sales of about 136,000 cases in the 12 months to March 2014. Investors were naturally spooked and the shares were gutted by more than a quarter.
I can’t believe that there were seriously suckers out there that would invest in this dog of a company. Moa is the Enron of beer. While it has a good distribution network (I’ve seen it on sale in my local supermarket here in San Antonio), it’s completely priced out of the market. Nobody is going to pay eleven bucks for that crap.
For eleven bucks, my beer had better actually come from a Trappist monastery in Belgium, be bottle fermented, and taste like God’s nectar. Moa beer does not meet these requirements. It is a bog standard craft brew which tastes nice enough, but nothing special that can’t already be gotten for half the price.
There seems to be no effort on Moa’s part to either make beer, or brand their beer, so that it is actually competitive in the marketplace. The whole point of Moa, in fact, seems to be to have a product that looks flashy so that investors will part with their cash. It seems to me to be nothing more than a Ponzi scheme. The goal is not to make beer and sell it at a profit. The goal is to run a company, get investment, and look like you are doing something to justify that investment by putting overpriced bottles on as many shelves as you can.
Eventually Enron Beer is going to run out of money, and some people are going to lose their shirt. But nobody should pretend that anything about this is actually about selling beer.