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  "docSlug": "c4de14509091",
  "documentTitle": "MGP Ingredients, Inc. (MGPI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2017-01-12 00:00:00",
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  "notes": "Uses red circles and arrows to draw attention to the discrepancy between sales decline and margin growth.",
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      "kind": "callout",
      "text": "Warning: Carefully notice that MGPI doesn't put the break-out of \"Premium Beverage Alcohol\" in its 10-Q SEC Filing. Yet, in its Q3'16 press release it boasts that industrial alcohol fell -22.9% YTD while premium beverage increased +16.7%",
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      "kind": "callout",
      "text": "Given the significant increase in margin, management should give more disclosure here.",
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      "kind": "callout",
      "text": "Warning: Carefully notice that MGPI doesn't put the break-out of \"Premium Beverage Alcohol\" in its 10-Q SEC Filing.",
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      "kind": "metric",
      "text": "Gross margin %: 3.1 pp",
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      "kind": "paragraph",
      "text": "Spruce Point doesn't understand how MGPI's distillery margins increased 310 bps YTD when its segment sales declined by 2.1%. The Company says the increase is from: \"the continuing shift in sales mix within food grade alcohol from lower margin industrial alcohol products to higher margin premium beverage alcohol products, a decline in input costs, and an increase in warehouse revenue.\" Looking carefully, we find a speculative explanation in the press release, but MGPI cannot commit to put it in its 10-Q SEC filing.....why?",
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      "kind": "quote",
      "text": "the continuing shift in sales mix within food grade alcohol from lower margin industrial alcohol products to higher margin premium beverage alcohol products, a decline in input costs, and an increase in warehouse revenue. — MGPI Press Release",
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      "text": "Source: MGPI Q3'16 10-Q, p. 25",
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      "text": "Product Group Net Sales and Other Financial Information tables showing YTD 2016 vs 2015 performance.",
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      "kind": "title",
      "text": "Something Doesn't Make Sense To Us",
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