Monday, June 8, 2009

Cadbury's chip off the old family block & lose customers

It has been 5 minutes since my last confession, I am chocoholic. I don't however need help with that.

The following is only serious if you love chocolate.

What I do need help with is Cadbury's decision to change package size design and formula for their range of family sized block chocolate range.

Previously 250g, these family blocks now range from 190 grams for the "chrunchie bar" block to 235 grams, all at the same price.

The dairy milk block is 200g and Carramellow 220g for example. 

Looking at a old 250g Carramellow next to a new one today I noticed that the were the same size. 

Why is that you ask?

Well the new blocks are packaged in thick cardboard instead of paper and aluminum - how sneaky of Cadbury.

I noticed shoppers looking at the new blocks with confusion and then going down to the Whittakers display to buy different flavours, all in the same size pack don't you know!

Also their chocolate is now made with vegetable fat rather than animal fat - that ain't chocolate anymore folks its a cocoa drink with water.

After calling 0800 Cadbury to complain, the chick there told me their family block had been different sizes for 20 years ( PR bollocks!) and that I was mistaken -hey I told you I was a chocoholic, I know my chocolate baby.

Whittaker's is who I will be buying my chocolate from now on -less confusing and they are made in New Zealand instead of Cadbury's blocks that are made in OZ.

A glass and a half of milk per block?

Not anymore.


c Political Animal 2009



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(UPDATE) TVNZ Follows China with Wendy Petrie censorship




           A picture of said fist pump


I wasn't going to post the Wendy Petrie (dish?) Youtube clip where she punches the air after David Bain trial coverage , just like the synapses in her little blond head are doubtless doing the same, until TVNZ got all high and mighty about it because they wanted the clip removed.

This was apparently due to the fact that it harmed the State broadcasters "image" - they mean the image of a left leaning muck-raker that spoon feeds its viewers with opinion dressed as fact.

So here for your enjoyment is the offending clip. It is  not viewable from the Youtube website which says the clip "cannot be view from your country" because TVNZ have come down on them.

Guess they cant report on China doing the same with the internet?

Doesn't Wendy's hair look great though?!


c Political Animal 2009



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Stock of the Week: Contact Energy Ltd



In this Stock of the Week I am going to look at the electricity generator and retailer Contact Energy Ltd [CEN.NZ]

The company has had short-term profit speed bumps, with another profit downgrade out today, but long-term the company will continue to grow its profit.

A part of a quadopoly, its generation assets alone should put it in anyone's bottom draw. Its attractiveness in today's turbulent stockmarket background made it one of my picks back at the end of last year and the solid nature of its profit, during an economic downturn and in better times should make it the backbone of anyone's portfolio.

There is another good reason to own the stock, especially if you have a short financial attention span. Origin Energy, Contact's majority owner, is likely to make another play at getting control of the whole company. Origin would have to pay close to double today's market capitalisation.

Beware though, there are drawbacks to owning shares in the company-the management, inside Contact and those that hold the purse strings at big daddy Origin are awful managers of this asset.

Yes a monkey could run an electricity company and that is exactly what you get with these guys but they will always make money under good and poor management.

Good luck!

Disclosure - looking at buying



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MarketWatch: Contact Energy - June 2009
MarketWatch: Contact Energy - Jan 2009
Contact Energy looks bright during dark times
Share Investor's 2009 Stock Picks
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The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition)
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
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c Share Investor 2009

MarketWatch: Contact Energy

Contact Energy Ltd [CEN.NZ] have come out with a profit warning this morning, lower than guidance made by the company in January 2009.

Profit for Contact’s 2009 full year is expected to be 30 –33 per cent less than the year ending 30 June 2008.

With the share price finishing at $NZ5.80 at market close on Friday there is going to be a good opportunity to get shares today a sale price - the market is going to savage Contact.

Keep in mind though that the market should have anticipated the downgrade as all the signs were there for a slight profit drop from Contacts own guidance in January 2009.

A great chance to stock up for this good long-term company.

Remember, it is still making a profit and will only continue to increase those profits over the long-term.

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c Share Investor 2009