The iced coffee sector has plunged into turmoil, with the manufacturers of Oak, Dare, and Farmer’s Union flavored milk entering receivership after a one-day strike by the construction and building workers’ union, CFMEU.
Mother Energy Drinks also experienced a sharp decline in share prices, while Four’N Twenty Pies faced significant financial challenges as of the latest updates.
Financial analyst Vincent Chan highlighted the severe repercussions of the strike, estimating that around 12 million liters of iced coffee went unsold. “The business model of these brands heavily relies on tradies consuming 4-5 liters of iced coffee and energy drinks before 9 a.m. Their recovery seems unlikely,” Chan remarked.
The repercussions of Farmer’s Union’s collapse could lead to a substantial downturn, with predictions indicating that the South Australian economy may slide into recession as a direct consequence.