Weber jumps 13% on report about possible takeover approach
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https://seekingalpha.com/news/389040...eover-approach
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https://seekingalpha.com/news/389040...eover-approach
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#sigh.
That will end the company as a serious grill maker.Popular Grill maker Weber Inc. (NYSE:WEBR) soared 14% after a report that the company received a takeover approach from a private equity firm.
​Last edited by rickgregory; October 13, 2022, 10:29 AM.-
That would be a travesty. I guess if I want a new Performer I better get it soon! -
Bkhuna - well...
equity firms almost never have any interest in the businesses they take over, they just want to pump the value and get out. Usually that destroys the company.
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Wait... I thought they went public a year or two ago? That must not have gone so well.
My experience with any business that takes venture capital is that it is the beginning of the end. At least for the employees. I worked for a couple different companies that took this approach, and it didn't work out well long term.Comment
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Stock is down 46% from the IPO, CEO was forced out. They likely IPOed because of the growth they saw during the pandemic but that was never reality so results were, of course, going to disappoint when compared YoY. -
Jim, they went public a year or two ago. Shares are down approx 48% since then. Buy opportunity? I am not at all sure. Tom -
Alabama Smoke all of my stock and 401K is down 25% to 40% in that timeframe. I'm just sitting on all of it and hoping and praying it comes back up eventually.
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I've been puzzled by Weber. They make this great product in the Summit Charcoal Grill, but the only people who know about it are people like us. Dismal marketing.Comment
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because marketing focuses on pushing the low end gassers in the box store. The margins must be small on their higher end stuff? I've never seen an ad for their top tier gassers, never seen an ad for any of their kettles, only ads for the dinky 2 and 3 burner low end units. -
When they changed description to "Kamado" that was an attempt to differentiate the WSCG from the kettle in their marketing format. But, I suspect that the vast audience still sees the two as "twins" based on shape and color as well as brand name, so in their minds the SCG is highly overpriced. It takes the tiny market share of "geeks" to appreciate the actual differences.
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You mean the Kamado? It's $2k. Most people think of the kettle when they think of Weber or they think of the Genesis gas grills. For charcoal, you can get them into variants of that like the Performer but high end stuff is always niche. Most people aren't serious about it and, frankly, for 98% of people a Performer is all the charcoal they need.Originally posted by hoovarmin View Post
I also think they've been hurt by the pellet grill emergence both on the gas grill front and the charcoal front. The Smokefire was fine, but again the EX6 is $1300 so it's a mid-high level competitor and unless you size down, there's no 'intro' series (like the Pro is for Traeger).
Also, Traeger kind of owns the pellet market from a mindshare perspective, perhaps along with Pit Boss and Camp Chef. I bet if one of us told a normal, non-smoker obsessed person that we'd gotten a pellet grill we'd get either "What's that?" or "Oh, a Traeger?" as a reply.Last edited by rickgregory; October 13, 2022, 02:24 PM.Comment
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I think the Summit is competing with kamados which are similarly priced but much heavier. Maybe it looks too much like their kettles though. IIRC they did not even call it a kamado at first which was a marketing mistake in my book. Meanwhile, the name "Traeger" is synonymous with "pellet smoker" and Weber seemed to enter that market late. -
It's the same with kamados. If I try to tell someone I have a kamado, they give me a blank stare. If I say its like a Big Green Egg, they immediately know what I mean. Even though there are a lot of long time competitors for BGE like Kamado Joe, the average person has no clue of that. And if I tell them I have a "Slow 'N Sear Deluxe Kamado". Oh yeah. No clue.
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We that doesn't help my decision making on my next grill… Have been going back and forth between 26 and Summit. Now I better decide soon as we know how this will end. May just buy a few 26’s and know Im set for life!Comment
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I doubt they will stop selling the kettles no matter what, or the basic gas grills like the Genesis and Spirit. But where I think corners will be cut, or lines slashed, its that niche high end market that doesn't sell at the big box stores - meaning the Summit series could be cut. Venture capitalists want quick return on their investment, and you get that selling lots of the lower end consumer stuff - not the niche stuff that 1% of the public is interested in.
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I think anyone that buys or invests in Weber is going to want to see more returns on the mass market stuff like the kettles and Spirit/Genesis gas grills. Or an increased entry into pellet grills. I don't think I even SAW a SmokeFire the last few times I was in my local Home Depot or Lowes. But I saw lots of Pit Boss pellet smokers and Traeger smokers.
I kinda think that high end stuff like the Summit could go by the wayside if venture capital types are involved. There cannot be that much profit in something that likely accounts for 1% of their total sales.Comment
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Okay, negative thinking is easy, so let me offer a slightly different way to think about where this might go. First, they're in the thinking/negotiating phase, so this transaction may not happen. But, even if it does, there will be a period of time in the beginning of the new ownership where the existing inventory will still be in the pipeline. Given that outdoor cooker sales have cooled considerably this year, that inventory backup might be fairly significant and last a while. If the new owners are more aggressive in pricing to move the sales numbers up for whatever their motivation might be, that means that the existing inventory will be better priced and still have the "current" quality level that some fear will be lost. If it were me sitting on the fence for a Weber product, I'd wait until that window of opportunity, either for the price benefit or to get the "last of the good ones". Even if there is no sales to a VC outfit, Weber may be induced to offer sale prices in order to improve sales, just as we saw the last couple days with the Kamado Joe units I posted. With the direction of the economy as it appears, it could be a long winter for all outdoor cooker marketers.Comment
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I’m certainly hoping it is not the end of the summit charcoal/ kamado whichever with table. That is a lust of mine, and I would be super bummed if they discontinued it. Other then that, I believe it could be a good thing, they seem to have been buried in the onslaught of barrels, and pellets. I’m counting on something better. Grillin Dad I will be scheming as well, another 26 is minimum, but I’d love 2 of the summit kamado s, one with one without table. Book ends! -
Richard Chrz There is a WSCGC for sale on FB right now a little up the road from me. The guy said he was doing competitions but isn't anymore so he's offloading. $1,200 for the grill that from the pics seems to be in good shape and it comes with the cyberQ, a couple probes and the pitbull fan. I've been trying to convince myself I don't need it but you should jump on it! If you want it I'd be willing to arrange a meeting point if you want.... kind of a long drive for you. -
Andrrr much of me wants to make it happen, the other part of me remembers we spent about 9-10 g on the patio and gazebo this year. Don’t ever stop telling me though. Although, I would have to find some delivery method, as I do not drive at all.
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I think the stock hit is because of this income statement.... Their revenue is up by ~30% but profits are basically flat. And if people thought the growth of 2020-21 was sustainable, I have a bridge to sell.
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I could see the 26 being included in the %1 items and see them go by the wayside. I agree the basic Weber kettle will stay as long as there is a Weber. However if the quality continues to slip as we have seen in the last 10 years they will be greatly overpriced.
I just bought 3 new 22 basics and they are as cheaply made as as some of the knock-offs I’ve seen. I wish I had assembled one of them before I gave the old 4 away, 2 would have been returned and I would have given one away and restored the othersComment
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There has been my struggle with Weber. There is no new technology in the kettles, they could improve the quality of that chassis quite a bit, especially if your going to continue to charge what they are. I don’t expect much out of a Weber kettle, but the legs and wheels are an embarrassment to them. But I love cooking out of them, so I guess I will likely always have at least one or two, -
CHNeal and Richard Chrz the horrible leg design on regular kettles is why I used to HATE my 1997 kettle. The legs were always coming out of the sockets if I tried to roll it across the grass, so I usually ended up picking the darned thing up to move it. My hate of the flimsy tripod design is why I love my Performer so much, with the much sturdier cart.Last edited by jfmorris; October 14, 2022, 09:11 AM.
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Wait and see. Also may not happen.Comment
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Does not bode well for Weber. These leveraged buyouts are generally done to take advantage of the Weber name and reputation and to take money out of the company through borrowing and cutting corners and staff. Then to use the Weber name to sell other ancilary cheap products sourced from Asia.Comment
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Thank god I bought all the Webers I'm gonna need...Comment
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Private Equity jerks. Our beach has been invaded by them. They have completely changed our community, for the absolute worse. How could it be otherwise, given what they do?Comment
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