Latest / What the Flux / The Inspired Unemployed's beer-deal fizzles | Mattel may have a buyer | Dolce & Gabbana opens up to respectful investors

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The Inspired Unemployed's beer-deal fizzles | Mattel may have a buyer | Dolce & Gabbana opens up to respectful investors · What the Flux

• 0:05
  Speaker 1: This is what the flux.
• 0:06
  Speaker 2: I'm Brett and I'm justin and it's Wednesday, the twenty
• 0:09
  Speaker 2: fourth of July.
• 0:10
  Speaker 1: Flex VAM.
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  Speaker 3: Just a little reminder that from the beginning of July,
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  Speaker 3: your employer is now required to pay you eleven and
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  Speaker 3: a half percent in super, up from eleven percent a
• 0:19
  Speaker 3: juzzy boy. According to the Treasury Department, that means that
• 0:22
  Speaker 3: the average worker will pocket about sixty four thousand dollars
• 0:26
  Speaker 3: more at retirement from the rise in the super guarantee.
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  Speaker 1: Not fad if you ask me, very good plus dam.
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  Speaker 2: As it comes to the end of the month, it
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  Speaker 2: is always the time to do your financial hygiene and
• 0:35
  Speaker 2: that means checking your credit score, tracking your budget, all
• 0:38
  Speaker 2: the important things to do at the end of the month,
• 0:40
  Speaker 2: and you can do it all in the Flucked app.
• 0:42
  Speaker 2: So make sure you gallow the app and check your
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  Speaker 2: credit score to get your hygiene nice and clean.
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  Speaker 3: Three marvelous stories today, juzzy boy, let's do it for
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  Speaker 3: our first. The merger between Mighty Craft Beverages and The
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  Speaker 3: Inspired Unemployed's Better Beer has fizzled out after Mighty Craft
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  Speaker 3: fell into administration.
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  Speaker 2: Jeez, not even the power of Jack Steel and Matt
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  Speaker 2: Ford could stop this keg from running. Drive bey Man,
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  Speaker 2: so tell me more.
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  Speaker 1: Okay.
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  Speaker 3: So, Mighty Craft is the ASX listed craft beer and
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  Speaker 3: spirits manufacturer behind brands like Slipstream, Mismash Brewing and Kangaroo
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  Speaker 3: Island Spirits and Sam.
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  Speaker 2: If you haven't heard of these brands, it's not a
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  Speaker 2: surprise because their craft drinks with very niche audiences.
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  Speaker 3: But Jie Boy, Mighty Craft really struck gold back in
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  Speaker 3: twenty twenty one when they agreed to manufacture Better Beer.
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  Speaker 2: That's the zero car beer created by the Instagram and
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  Speaker 2: TikTok comedians the inspired unemployee.
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  Speaker 3: They have managed to grow Better Beer into twenty six
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  Speaker 3: million dollars in annual revenue.
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  Speaker 2: And Mightykraft had a frothy thirty three percent steak in
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  Speaker 2: the business and.
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  Speaker 3: Josie Boy, there were whispers that Better Beer and Mighty
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  Speaker 3: Craft would actually merge.
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  Speaker 2: But unfortunately, Mighty Kraft has now fallen into administration, and
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  Speaker 2: it also means their merger with Better Beer has gone
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  Speaker 2: out the window like the last swig of a very
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  Speaker 2: warm beer and be man. It's mainly because the craft
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  Speaker 2: beer industry has struggled to keep up with the increasing.
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  Speaker 1: Costs interesting, So what is the key learning here?
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  Speaker 2: The smaller businesses managing the cost of raw materials and
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  Speaker 2: other operational expenses is crucial to survival.
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  Speaker 3: Especially in industries with type profit margins like craft brewing.
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  Speaker 2: And then then the broader craft beer market in Australia
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  Speaker 2: has been under some serious pressure over the past few years.
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  Speaker 3: Well, for one, Jazzy Boy, they've seen raw material costs
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  Speaker 3: rise big time.
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  Speaker 2: We're talking a jump of twenty five to thirty percent.
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  Speaker 3: They've also seen a government excise tax increase on alcohol
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  Speaker 3: and on top of that, many ozzy households have cut
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  Speaker 3: back on spending, particularly on more expensive alcohol, because budgets
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  Speaker 3: have been squeezed. So that's why we're starting to see
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  Speaker 3: craft brewers either collapse or sell so just larger company.
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  Speaker 2: We saw Southwest Brewery in Torquaye, Victoria go into administration
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  Speaker 2: in May.
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  Speaker 3: I think we also sought Temple Brewing, which is a
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  Speaker 3: brewery in East Brunswick in Melbourne shutdown in May. So
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  Speaker 3: jusey boy, it's a sobering reminder that in the world
• 2:51
  Speaker 3: of craft beer, it's not always happy hour. For our
• 2:54
  Speaker 3: second story, Mattel, the toymaker behind Barbie and Hot Wheels
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  Speaker 3: has seen a share price skyrocket twenty after reports that
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  Speaker 3: a private equity firm is looking to acquire it. Holy
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  Speaker 3: Hot Wheels, that's all I can say. That would be
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  Speaker 3: a huge deal, jussy boy. Go on tell me more.
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  Speaker 2: Well, Mattel doesn't really need to be introduced, but they're
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  Speaker 2: the toy company behind brands like Barbie, Hot Wheels, Fisher Price, Uno,
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  Speaker 2: your Favorite Barney, and more than about fifty other brands
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  Speaker 2: and the man at Mattel's share price went up big
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  Speaker 2: time last year after the release of the Barbie movie.
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  Speaker 1: Just Quietly, Juzzy Boy.
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  Speaker 3: They saw a twenty two percent jump in their share
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  Speaker 3: price after Margo Robbie sent Barbie into the stratosphere.
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  Speaker 2: But be man, how one year can change things, because
• 3:32
  Speaker 2: this year there have been major concerns around Mattel's profitability.
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  Speaker 2: In fact, it's share price was down twenty three percent
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  Speaker 2: over the past twelve months.
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  Speaker 3: But now there are reports that el Cadaton, the private
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  Speaker 3: equity firm, has approached Mattel about a potential acquisition and
• 3:46
  Speaker 3: shareholders are loving this rum or, aren't they. The next minute,
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  Speaker 3: their share price jumped twenty percent, and.
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  Speaker 2: There's even more rumors that this acquisition approach will bring
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  Speaker 2: more buyers to the table like their arch rival has.
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  Speaker 2: Bro Nothing quite like strong competitive tension in an acquisition process.
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  Speaker 2: So what is the key learning here?
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  Speaker 3: Competitive tension is the pressure felt by a potential acquirer
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  Speaker 3: when they are aware that there are multiple other parties
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  Speaker 3: also trying to acquire the same company. And be Man,
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  Speaker 3: it's fair to say that competitive tension is the purest
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  Speaker 3: way to keep by his artist.
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  Speaker 2: AH.
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  Speaker 3: If you have a number of potential acquirers interested in
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  Speaker 3: your business, it gives the company and its shareholders a
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  Speaker 3: bit of a choice of exit options.
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  Speaker 2: And be Man, competitive tension in the M and A
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  Speaker 2: process can significantly increase the sail price.
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  Speaker 3: Get this little stat Research at Columbia University was done
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  Speaker 3: on seven hundred and eighty public US merger and acquisition
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  Speaker 3: transactions from twenty four and twenty seventeen, and it found
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  Speaker 3: that when there is competition among bidders for public companies,
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  Speaker 3: it leads to an average of almost six percent on
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  Speaker 3: the takeover price.
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  Speaker 2: Wow. So be Man Mattel will be trying to bring
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  Speaker 2: as many parties, as many toys to the table as
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  Speaker 2: possible to get the best outcome for a shareholders.
• 4:52
  Speaker 3: For our third and final story, adultca in Cabana is
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  Speaker 3: flirting with the idea of bringing in outside shareholders for
• 4:59
  Speaker 3: the very first time, either through a listing or through
• 5:01
  Speaker 3: other ways.
• 5:02
  Speaker 2: Geez, breaking away from just a familia for them, so
• 5:04
  Speaker 2: tell me more.
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  Speaker 3: Dulcin Gabana is the Italian luxury fashion house that was
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  Speaker 3: founded in nineteen eighty five by two designers, Domenico Dolci
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  Speaker 3: and Stefano Gabana and Aman.
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  Speaker 2: It's a brand that's been worn by the likes of Beyonce,
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  Speaker 2: Scaliahans and Kylie Mino, Kin Kardashian and many more celebs.
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  Speaker 3: While Dulcin Gabana generated more than one point eight billion
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  Speaker 3: euros in revenue last financial year.
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  Speaker 1: It's still owned by the two founders and their families.
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  Speaker 2: But now Dolci and Gabana has said it's considering a
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  Speaker 2: stock market listing.
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  Speaker 1: YEP.
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  Speaker 3: It's ready to consider opening its doors to third party investors.
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  Speaker 2: But they've warned that they will not compromise the ethical
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  Speaker 2: value of the company in order to secure financing.
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  Speaker 1: YEP.
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  Speaker 3: They even said, and this is something you never hear
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  Speaker 3: in the corporate world. They want respectful growth.
• 5:46
  Speaker 2: Growth at all costs. Definitely not for the old Dolcian Gabana,
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  Speaker 2: no Peruni. So what's the key learning here? When a
• 5:51
  Speaker 2: company's owners choose to bring in additional shareholders, they often
• 5:54
  Speaker 2: need to sacrifice creative control in exchange for shareholder profit.
• 5:57
  Speaker 2: You see Jazzi boy.
• 5:58
  Speaker 3: A private company like Dolchina that's owned by its founders
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  Speaker 3: can choose at any given time what it wants.
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  Speaker 2: To do, think investing in new releases, trying out new, creative,
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  Speaker 2: controversial directions.
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  Speaker 3: But a public company is obligated to its shareholders, and
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  Speaker 3: often that means prioritizing profits.
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  Speaker 1: Above all else.
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  Speaker 2: This is the risk that dulceain Gabana runs if it
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  Speaker 2: chooses to list and.
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  Speaker 3: Jesse Boy, We've seen what happens when a fashion brand
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  Speaker 3: gets caught in a tug of war between profit seeking
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  Speaker 3: and maintaining exclusivity.
• 6:25
  Speaker 1: With good old Gucci Yep.
• 6:27
  Speaker 2: Gucci was acquired by Keering in nineteen ninety nine, and
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  Speaker 2: its image is a luxury brand has slowly dropped.
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  Speaker 3: So much so that Gucci's revenue in the first quarter
• 6:34
  Speaker 3: of this year is expected to be down by about
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  Speaker 3: twenty percent.
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  Speaker 2: So it's pretty fair of Dulchin Gabana to be wary
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  Speaker 2: of losing sight of its priorities if it chooses to
• 6:43
  Speaker 2: raise external capital. Flux fan, did you know sixty six
• 6:45
  Speaker 2: percent of Australians do not know their credit score? And
• 6:48
  Speaker 2: if you're thinking right now, that is me to get
• 6:50
  Speaker 2: out of that sixty six percent. Download the Flux app
• 6:52
  Speaker 2: and check out your credit score.
• 6:53
  Speaker 1: Thanks for listening and we'll see you on Friday