Breville's Brand Equity in Europe and the U.S. Underpins Its Narrow Economic Moat

We expect Breville's premium position in niche European and North American small appliances to continue to bear fruit, with strong earnings growth buoyed by continued global expansion. The company’s range of small electrical appliances have established significant brand strength, underpinning the firm's sustainable 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 15% to 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.