CZZ - Capilano Honey

[Value Collector]

The Age today.
The imported honey from China is adulterated, mixed with something else. Capilano have some ranges involved.
Where would be be without Fairfax? One of the last organisations doing real research (with the ABC but they haven't done much lately).

I think it's a beat up, the samples and testing was funded by one of the guys thats been against CZZ for ages.

Either way though, I did think there might be a chance the issue might derail one or both take over offers, So today I sold 50% of my holding at $21.

I have left the remaining 50% at play/risk incase a higher bid does come through at above $21.

 

[galumay]

I think it's a beat up

Be careful of your biases VC, i agree about where the funding came from, but this is more serious this time. This form of testing is being moved to internationally and also its been proposed Australia move to this standard. I dont think there is much doubt the imported honey is nearly all adulterated.

The damage to CZZ may be limited because they can probably honestly claim not to have known about the adulteration, but the market and aquirers may not be so forgiving as me!

 

[Value Collector]

Be careful of your biases VC, i agree about where the funding came from, but this is more serious this time. This form of testing is being moved to internationally and also its been proposed Australia move to this standard. I dont think there is much doubt the imported honey is nearly all adulterated.

The damage to CZZ may be limited because they can probably honestly claim not to have known about the adulteration, but the market and aquirers may not be so forgiving as me!

It is not as clear cut as you think, the method of testing is highly reliant on the database of previous samples, and the European test done may not reflect the region of the sources honey.

Also, the same samples passed the test at other labs.

Not to mention that the lawyers with one of the bidders has just announced that they were involved in commissioning the tests.

But you are right, mud sticks and the public might not care about the facts, hence why I reduced my exposure at a price that is very good considering my entry price 5 years ago.

https://tendaily.com.au/shows/theproject/news/a180903dyg/statement-from-allowrie-20180903

 

[notting]

It's not a beat up.
It's honey production is not complicated.
You can easily disclose exactly how you do it, where you source the product, how you make it etc. You can take journalists through the entire process. It's easy.

If you don't do that and just start slurring the 'testing process,' that is as good as an admission of guilt!

The NDA tests are far more sophisticated than the Australian standards tests.
There is nothing wrong with a bidder commissioning tests, it's called due diligence.

It's great that this has been exposed. I've never liked the company. Always smelt like something fishy was going on.
Oh then there is the problem of the so called real honey which is gotten from feeding bees sugar rather than using bees to gather pollen and convert it to honey the natural way!
Not as bad as using rice syrup from the poisoned land of China, but still pretty disgusting!

 

[Value Collector]

It's not a beat up.
It's honey production is not complicated.
You can easily disclose exactly how you do it, where you source the product, how you make it etc. You can take journalists through the entire process. It's easy.

If you don't do that and just start slurring the 'testing process,' that is as good as an admission of guilt!

The NDA tests are far more sophisticated than the Australian standards tests.
There is nothing wrong with a bidder commissioning tests, it's called due diligence.

It's great that this has been exposed. I've never liked the company. Always smelt like something fishy was going on.
Oh then there is the problem of the so called real honey which is gotten from feeding bees sugar rather than using bees to gather pollen and convert it to honey the natural way!
Not as bad as using rice syrup from the poisoned land of China, but still pretty disgusting!

The honey samples passed nda tests from some labs and only failed at one lab.

It is possible the lab where it failed didn’t have a data base that covered he region of production.

Capilano are a honey packer, they buy honey from about 1000 bee keepers, how exactly are they going to “run a journalist through the production process”

If it turns out that Capilano did get sold a pup and some suspect honey made it through their strict testing process, then they are as much a victim as the consumer, because they have been ripped off too.

But as I said it’s to early to judge exactly what has happened yet.

 

[notting]

Nup. They know exactly what is going on!! Of course they do.
If you look at the body language etc of the Costa Group guy that outed them, you can tell it was well known within the industry about the corruption. I had heard about it too, prior to this. Had told my partner not to buy it, but get local stuff from local bee keepers.!!
Was a great trade/investment never the less.
We have to get on top of this China problem. It is massive. They pretty much destroy everything that is good!

 

[CanOz]

From the ABC today....

NZ sells 10000 tons a year but only produces 1700!

 

[SirRumpole]

Expecting companies to self regulate is pie in the sky.

If we want confidence in our food production then there needs to be regular testing by a government based (csiro or university) organisation.

 

[System]

On December 7th, 2018, Capilano Honey Limited (CZZ) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement where Bravo BidCo Pty Limited has acquired 100% of the share capital of CZZ.