QAF

[shanrui_91]

I go to Ben Foods, their staff shop, every fortnight at Jurong Pier Road. Reasonably priced and fresh products. Their fresh meats are very popular. Their brands- Gardenia, Bonjour, Farmland, Cowhead, etc. not bad. Ben foods is a distributor of FMCG's as well. They are one of the biggest exporters of pork in Australia. They have lots of assets in farming in Australia. Turned around only in the past 2 years or so. Got rid, I think of their loss-making China juice making company 2 years ago, which greatly helped. Can read more about them here: http://www.qaf.com.sg/launch.asp

do you know if there's any concrete plan of divesting their farming operation in Australia and when are they going to do that? Or perhaps they should just spin off their bakery business instead.

The bakery business is a more profitable business than even our prized essence of chicken and tiger beer. In fact, bakery has been the cash cow that has been feeding all other lousy businesses. Bread and rice are the crown jewel in the FMCG market for a very simple reason that these are perishable that has very high turnover. Cowhead and farmland are just sub-par brands that act as a source of diversification perhaps.

This is the classic example of diworsification, but of course it shows that if you have an excellent business, it's really hard for a fool to destroy the company completely.

Not quite diworsification. It is still within the consumer staple business. A classic example of diworsification would be Aztech when they went into the marine business.

my diworsification is talking about the farm and the juice business. I don;t see any synergy in terms of revenue and cost as compared to bakery business. With the high return that the bakery can generate, the company should focus on expanding it beyond its existing scope of operation in Singapore, Malaysia and Phillipine instead of going into another business