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August 13, 2013

European Opportunity for Plandaí Should Not Be Overlooked

With 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.

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Senior Analyst: Robert Goldman
Rob Goldman has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification
I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

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