August 13, 2013 European Opportunity for Plandaí Should Not Be OverlookedWith a flurry of news on the research and development front in recent weeks, it appears as if investors have forgotten about the market opportunity in Europe that lies ahead for Plandaí Biotechnology (OTC QB – PLPL - $0.54 – Spec Buy). In May of 2013, the Company announced a partnership with a leading Irish distributer, Willow Ingredients, Ltd. Willow will have non-exclusive rights to sell and market Plandai's Phytofare™ extracts into European markets. This is a key alliance for Plandaí. Willow is a family-owned firm that specializes and targets the medical, nutraceutical and animal sectors in exclusive agreements. Willow has a history of great relationships with suppliers offering fast and reliable time–to-market responses to customers. The company distributes hundreds of raw materials in these categories: Amino Acids, Herbal Extracts, Joint Maintenance, Oils and Powders, and Probiotics. Willow meets and exceeds all regulatory and voluntary quality standards in the industries it serves. Clearly, the experience and established supply chain will enable Plandaí to gain traction in the European market. The European market for nutraceutical and botanical extract products can be broken into two segments: Western Europe and Eastern Europe. This is the case for most consumer discretionary products as well, as Western Europe is a more established, slower growth economy, and Eastern Europe represents new and accelerating growth opportunities but with some greater volatility. In a 2012 study, the market research firm Transparency Market Research, (TMR) estimated an annual growth rate of 6% for the worldwide nutraceutical market from 2012 to 2017 with a market size of nearly $205 billion by 2017. According to the study, Eastern and Western Europe combined will represent the third largest market behind the U.S. and Asia. Performing some quick interpolation from the data from the two market research firms, an estimate for the overall European market around $55 billion in 2017 can be inferred. Plandaí’s strategic partner, Willow, Ltd. will help the Company tap into the growing European nutraceutical market. Willow’s experience and established supply chain base should facilitate Plandaí’s entry into the market with its Phytofare™ extract products in 1H14 and Plandaí’s superior product bioavailability of the Company’s products is a huge selling point and will be a game changer. Coupled with a quick response supply chain, Plandaí is poised for growth in Europe and future top-line revenue growth.
You Might Also Like
Senior Analyst: Robert Goldman Analyst Certification Disclaimer This article is the opinion of Goldman Small Cap Research and was written based upon publicly available information. The Company has not endorsed or compensated Goldman Small Cap Research for this article. All information contained in this report was provided by the Company or derived from GSCR due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations. The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research report, update, article, or note is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed. This publication does not take into account the investment objectives, financial situation, or particular needs of any particular person. This report does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA, the U.S. Securities and Exchange Commission or with any state securities regulatory authority. ALL INFORMATION IN THIS REPORT IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION. |