Current Shares Out4725000.0
Post Offering Valuation7247500.0
Post Offering Shares Out7247500.0
Overview and HistoryEDIT
Increasing consumer demand for fresh, minimally processed and unaltered food, in addition to food industry businesses including processors, producers, grocery chains and restaurant operators focus on extending food product shelf life, is creating a tremendous market opportunity for the food contact paper industry. In particular, a segment of this industry is emerging, called “advanced packaging solutions” which is projected to be nearly $44 billion by 2017.
Another important driver of advanced packaging solutions is sustainability and the impact active and intelligent packaging technologies can play in the mitigation of food waste.
Hunger is one of the most urgent development challenges we face on a global basis. Yet recovering just half of what is lost or wasted could feed the world alone. The Food and Agriculture Organization (FAO) reports that up to one-third of all food is spoiled or squandered before it is consumed by people.
MicrobeGuard was formed to develop proprietary active packaging paper, designed to minimize microbial growth, and to extend shelf life of stored food product. Our antimicrobial technology is effective against a broad range of micro-organisms, including bacterial, algae and fungus (both mold and yeast).
Our FoodTouch® product line is the first commercial antimicrobial active packaging paper product used by recognized food companies in the processor, foodservice and grocery segments in North America and International. Our products are used as tray liners, food covers, interleave between stacked foods and wrapping.
In 2014, we entered into an agreement with Bunzl Distribution USA, which serves the food processor,
supermarket and convenience store markets, and more than $8.5 billion annually, to exclusively inventory
and distribute FoodTouch products throughout North America. Under the terms of this agreement, Bunzlis responsible for managing all aspects of sales and inventory of the FoodTouch line, including related
costs. We will continue to extend the depth and breadth of our products in the line for Bunzl to include
into its program. For example, we have developed and are introducing a FoodTouch Seafood System that Bunzl can bring
to grocers that will revolutionize, and standardize the way that fish is handled, stored and displayed across
the grocery value chain.
In addition to the leverage the Bunzl relationship offers our sales plan, we intend to expand operations
and further accelerate sales growth by greater focus of FoodTouch sales internationally, and through the
establishment and commercial launch of StayFresh into the North American retail consumer market.
We believe that the consumer market opportunity addressable with our StayFresh brand will be
transformational to our business plan, and importantly, it provides MicrobeGuard with a direct strategy to
impact food waste at the consumer level.
For example, we have developed and are introducing a FoodTouch Seafood System that Bunzl can bring to grocers that will revolutionize, and standardize the way that fish is handled, stored and displayed across the grocery value chain.
In addition to the leverage the Bunzl relationship offers our sales plan, we intend to expand operations and further accelerate sales growth by greater focus of FoodTouch sales internationally, and through the establishment and commercial launch of StayFresh into the North American retail consumer market.
We believe that the consumer market opportunity addressable with our StayFresh brand will be transformational to our business plan, and importantly, it provides MicrobeGuard with a direct strategy to impact food waste at the consumer level.
Products and ServicesEDIT
Liner/Cover: A food storage utensil that fits all types of pans, trays food tubs and containers. Also used to line ice displays to prevent ice burn and contamination.
Interleave: Used for stacking food for overnight storage, transporting foods safer and fresher in shipping containers, and for saving valuable storage and display space by allowing better use of trays, storage, containers and refrigeration shelves.
Wrap: Used for wrapping individual portions to eliminate excessive handling while in storage, as a wrap at the time of cutting to keep food separated to avoid cross contamination, and as a packaging wrap or inner liner for consumer sales.
Our StayFresh Wrap is a compelling solution for grocery, specialty, organic foods and gourmet products where consumers are increasingly health conscious and demand fresh foods.
Consumers already use paper and packaging products designed to preserve and store food. However, there are at present no active packaging solutions offered to this market which are specifically designed, through the use of antimicrobial technologies, to further enhance and maximize shelf-life, and mitigate microbial growth. This is a tremendous opportunity for MicrobeGuard and our StayFresh product line that we intend to address.
Liner and Cover: A food storage utensil for all types of pans, trays and containers. Also used in the freezer to prevent burn and contamination;
Interleave: Used for stacking perishable foods for storage, during food preparation and for transporting foods safer and fresher in coolers and shipping containers;
Wrap: Used for wrapping individual portions to eliminate excessive handling while in the refrigerator or freezer, and as a wrap at the time of cutting to keep food separated to avoid cross contamination. StayFresh Wrap is designed to work with fresh fish, meat, poultry and cheeses. It is also effective in keeping fruits and vegetables fresher longer.
We will rollout StayFresh initially into the Specialty and Organic Foods/Gourmet Products market in the first half of 2016.
The “advanced packaging solutions” market is projected to be approximately $44 billion by 20174, and is highly competitive. Many companies developing food contact paper for commercial and retail consumer applications have significantly greater resources than we do, including International Paper, Mondi, Nordic Paper Holding, Smurfit Kappa Group, Burrows Paper, Cascades, Glatfelter, Huhtamaki, Intertek and Seaman Paper. We believe that our partnership with Bunzl provides us with the scale and market reach to compete with these companies, despite our size and relative lack of resources.
Key Growth Drivers for our Business
Consumer demand for fresh foods,
Sustainability concerns and reducing waste,
Increasing interest and demand in antimicrobial paper, and
Broadening industry applications.
Consumer Demand for Fresh Foods
Consumer perception of the nutrition and healthfulness of fresh foods continues to rise. Celebrity chefs and reality cooking shows are pervasive in the media, emphasizing fresh ingredients and home cooking. Farmers markets have grown explosively over the past 10-15 years as consumers have become attracted to fresh and locally grown foods. Fresh is considered the ultimate, convenient, ready-to-eat solution. Meanwhile, frozen prepared meals are in decline and industry innovation has failed to regain consumer attention in terms of quality and convenience.
By 2020, millennials over 25 will be 19% of the population and will significantly impact the food-at-home industry. These consumers are increasingly opting for fresher and healthier food. This consumer base spends nearly 50% of its food budget on ready-to-eat solutions, such as take-out products and restaurant meals. They buy more frequently and eat immediately. And they are leaving the frozen food department.
Retailers will continue to respond to changing consumer preferences, dedicating increasing space to fresh foods. We expect this trend to favor our antimicrobial products.
Food Waste and Need to Provide Sustainable Solutions
The Food and Agriculture Organization of the United Nations estimates that one-third of food produced for human consumption worldwide is annually lost or wasted along the chain that stretches from farms to processing plants, marketplaces, retailers, food-service operations and our collective kitchens. At 2.8 trillion pounds, that is enough to feed 3 billion people.
In the U.S. waste is higher on a per capita basis. More than 30% of our food, valued at $162 billion annually, isn’t eaten. Spills, spoilage, table scraps and other losses from the typical American family of four add up to 1,160 pounds of uneaten food annually.
There are many reasons for the waste, but better food contact packaging technology that keeps food fresh longer is a critical part of the solution.
Our Solution & Value PropositionEDIT
Our patented technology is flexible and based on the component structure of our paper, where any antimicrobial ingredient can be added based on its ability to achieve the maximum desired effect. At present, our active packaging solutions are based on silver ions, which are non-toxic, naturally occurring and antimicrobial to stop bacteria from multiplying. Silver ions inhibit the reproduction of microbes, so each sheet is protected from unwanted microorganisms which can cause degradation. These antimicrobial features remain throughout the lifetime of the paper and will not lose efficacy over time.
The use of silver as antimicrobial is a burgeoning market, and is becoming one of the most widely used additives in food applications. We believe our IP positions us well to exploit not only its potential use in active food packaging, but the potential use of other antimicrobial uses specific to market applications.
Product Overview & Value Proposition
Our value proposition is straight forward and goes to the heart of the food service industry pain. Our antimicrobial paper products keep food fresher longer. Additional benefits are that our products stay strong when wet, do not absorb natural oils like traditional papers, reduce off-odors, wick away excess moisture and allow food to breath – unlike plastic wraps that suffocate foods. Important to consumer facing customers, these benefits keep help food maintain the appearance of freshness.
As noted above, our FoodTouch products are used as tray liners, food covers, interleave between stacked
foods and wrapping. They are offered in multiple colors and various substrates and formulations to fit different applications. They are sold by the case, by the roll and a roll in a dispenser box. Custom sizes are also available.