Rice is definitely a commodity. Ebro adds branding, distribution and packaging.
Ebro benefits from lower rice (input) prices by not lowering their prices and having temporarily higher margins. Customers are not daily watching rice prices.
Not dissimilar to gas stations benefitting from moves in the oil price.
Indofood is a lot cheaper and has more emerging market exposure. Personally did not like the acquisition of a related company at a high price.
I do think it is easier to have a strong brand in noodles than in rice.
If I had to choose between Ebro and Indo I would probably choose Indo Foods as well.
Grupo nutresa might be interesting in this category also
Delfi is also worth a look.
Not sure i understand.
Is rice not a commodity?
What value adds ebro rice product to this rice input (packing /distribution?)
I guess that price ebro rice output is significantly affected and determined by price rice input, in order to compete.
Prefer indofoods anyway.
Rice is definitely a commodity. Ebro adds branding, distribution and packaging.
Ebro benefits from lower rice (input) prices by not lowering their prices and having temporarily higher margins. Customers are not daily watching rice prices.
Not dissimilar to gas stations benefitting from moves in the oil price.
Indofood is a lot cheaper and has more emerging market exposure. Personally did not like the acquisition of a related company at a high price.
I do think it is easier to have a strong brand in noodles than in rice.
If I had to choose between Ebro and Indo I would probably choose Indo Foods as well.
interesting!