Monday, 10 September 2018

Righteous - one of Crowdcube's shining stars - hands the reins on.



Righteous has been handed over to new management. The Harris's, who founded the company and then founded Cauli Rice, both funded via Crowdcube, have eventually given up on the salad dressing brand and resigned from the company. New directors have been appointed. 


Crowdcube shareholders were, last year, given shares in Cauli as an alternative and in the run up to the virtual collapse of the Righteous brand. Listings that were the powerhouse of the initial sales proved only temporary as the big supermarkets squeezed the salad dressings off their shelves or created their own brands. We said this would happen way back in 2014. 

What the Harris's failed to grasp was that initial listings in these massive chains are of no use - they slaughter margins, put massive strains on logistics and eventually wither and die. Pull through sales are what you need and without then the supermarkets will delist you in the flick of a button. That is exactly what happened with Righteous. What was promoted on Crowdcube as the Holy Grail turned out to be the worst move they made. 

We really hope they dont make the same mistake with Cauli, although they have gone down that track again, so only time will tell. 

1 comment:

  1. Great news about Crowdcube acquiring Supdate hey?

    ReplyDelete