OTCPK:GBGPF - Post by User
Comment by
puppitoon Nov 28, 2017 5:00pm
63 Views
Post# 27049356
RE:RE:Aurora's made biggest strategic mistake of all Players
RE:RE:Aurora's made biggest strategic mistake of all PlayersI agree with you to some extent with the point that initial sales will be large regardless...That is a simple economic supply and demand issue for sure.
But Aurora doesn't have anything to separate itself beyond year 1. And it certainly isn't likely to get sales in Year 1 and 2 to justify its diluted and inflated share price. It doesn't have a Brand.
Simple reality of importance of Brand:
Aurora's "war" chest is a drop in the bucket when compared to neighbors to the south. Its war chest doesn't even match the advertising budgets of beer industry players (as one example). I'm guessing our new free trade agreement will have something to say about how this all plays out....
If Aurora doesn't have a brand....at the end of the short term it has nothing.
A-B, No. 1 in the U.S. beer market with nearly a 50% share, spent about $511 million on advertising last year, according to TNS Media Intelligence. That dwarfs the spending of either No. 2 SABMiller or No. 3 Molson Coors, which total about 30% of the market. But combined, their ad spending was about $422 million.
Cigarette and smokeless tobacco companies spend billions of dollars each year to market their products. In 2015, cigarette and smokeless tobacco companies spent $8.9 billion on advertising and promotional expenses in the United States alone.