Q
Q4 - OE_Strengths
What do you see as Flowers’ particular strengths?
"Flowers has been good at operating efficiencies and making sure its costs have lowered in a very mature industry. Flowers has been good at capital allocations, I’m happy with them from that point of view. Those two are the biggest strengths. We like the management. We've generally been happy with the management."
Q5 - OE_Weaknesses
What do you see as Flowers’ particular weaknesses?
"They’re in a very difficult industry. Industry growth particularly over the last two years has just gone down so much. Maybe a lot of consumer consensus towards artisanal bread, organic bread, for whatever reason the industry growth has just completely declined and that has impacted their earnings and the same thing with the stock. Industry is probably an issue. It’s a mature industry but with organics coming down a lot it’s affected them a lot more, more recently. It’s the biggest weakness. The industry is the biggest issue."
Q7 - OE_StrategyElements
What are the main elements of management’s business strategy?
"They’re trying to introduce the new brand Dave’s Killer Bread everywhere and that makes sense, the expansion of organic bread. Makes a lot of sense. Also cost-cutting and rebranding will make more sense with this Project Centennial that they have. Those are two …show more content…
Are we talking only consumer staples or are we talking the whole investment universe? Flowers has just done well with lower levels of leverage and has done well so far as long as the category was doing okay. When the category declined, Flowers investment became more difficult. We own Post Holdings, Inc. and we like them and we own B & G Foods Inc. in the food space. Those are the companies that we own. It’s a different segment, they work very differently than Flowers does so I don’t know if it’s a very [Indiscernible 12:14] peer or not but if I were to allocate capital, I would allocate there versus allocating to
Q4 - OE_Strengths
What do you see as Flowers’ particular strengths?
"Flowers has been good at operating efficiencies and making sure its costs have lowered in a very mature industry. Flowers has been good at capital allocations, I’m happy with them from that point of view. Those two are the biggest strengths. We like the management. We've generally been happy with the management."
Q5 - OE_Weaknesses
What do you see as Flowers’ particular weaknesses?
"They’re in a very difficult industry. Industry growth particularly over the last two years has just gone down so much. Maybe a lot of consumer consensus towards artisanal bread, organic bread, for whatever reason the industry growth has just completely declined and that has impacted their earnings and the same thing with the stock. Industry is probably an issue. It’s a mature industry but with organics coming down a lot it’s affected them a lot more, more recently. It’s the biggest weakness. The industry is the biggest issue."
Q7 - OE_StrategyElements
What are the main elements of management’s business strategy?
"They’re trying to introduce the new brand Dave’s Killer Bread everywhere and that makes sense, the expansion of organic bread. Makes a lot of sense. Also cost-cutting and rebranding will make more sense with this Project Centennial that they have. Those are two …show more content…
Are we talking only consumer staples or are we talking the whole investment universe? Flowers has just done well with lower levels of leverage and has done well so far as long as the category was doing okay. When the category declined, Flowers investment became more difficult. We own Post Holdings, Inc. and we like them and we own B & G Foods Inc. in the food space. Those are the companies that we own. It’s a different segment, they work very differently than Flowers does so I don’t know if it’s a very [Indiscernible 12:14] peer or not but if I were to allocate capital, I would allocate there versus allocating to