Breville's Brands Underpin Narrow Economic Moat

Breville's premium position in niche European and North American small appliances should continue to bear fruit, with strong earnings growth buoyed by global expansion. The company’s small electrical appliances have established significant brand strength, underpinning durable competitive advantages. This brand strength is particularly prominent in North America and Europe, where Breville is able to command a substantial price premium to competitors and where retail pricing is routinely 10%-30% higher than in Australia. However, the small kitchen appliance industry remains competitive, and there are few significant long-term barriers to entry, limiting our economic moat rating to narrow.