Despite global efforts, food waste remains a challenging problem to solve. Each year, 1.3 billion tons of food is wasted due to poor handling, costing the global economy $1.5 trillion. This waste contributes 6-8% of annual greenhouse gas emissions and, what’s more, if saved, it could have fed about 1.26 billion people.
No doubt, food preservation demands a new outlook.
An ASX-listed company on the task is Zoono (ASX: ZNO), developing sprays, wipes, sanitizers and more. The global biotech company delivering antimicrobial solutions has signed an exclusive agency agreement with OSY Group (OSY) to promote the sale of Zoono products for the food supply chain sector.
The five-year agreement comes with an option to renew for another five years. It includes exclusivity in the UK, EU, and the rest of the world except China and India, with those countries having the first refusal right. Zoono will pay OSY a 25% commission on net sales and 50% commission on the price difference per liter above the base rate.
OSY, headquartered in Manchester, the UK, specialises in sustainable hygiene technologies. For the past two years, OSY has collaborated with a UK supermarket chain and a soft fruit supplier to implement shelf-life extension technology, aiming to reduce global food waste.
Zoono offers various products which create a durable protective layer on surfaces, preventing the growth of harmful microorganisms. Together with Zoono, OSY has developed a special coating technology for applying Zoono products efficiently during the soft fruit packaging process. This process enhances the shelf-life of packaged products without compromising compliance with food safety regulations.
The food shelf-life extension trials have now concluded, and the results have shown that there is up to a 40% increase in shelf-life of soft fruits where the packaging has been treated with Zoono products. For certain food categories, a one-day shelf-life extension can reduce waste by half.
The agreement with OSY grants it exclusivity in the food supply chain sector for the purpose of extending food shelf-life, including but not limited to supermarkets and grocers, food retailers, food producers, food processors, food manufacturers and food packaging companies.
Minimum annual customer purchase targets will increase over three years for the UK, EU, and rest of the world (excluding China and India), with 5% annual increases thereafter, capped at $9.3M. ROW sales commence when the first quarter sales reach specified amounts ($940k in the EU).
Zoono will pay an annual 10% incentive in net customer sales on the agreement’s anniversary date, issued as shares in Zoono Group Limited at a price determined by the average trading price over the previous 30 days. The maximum number of shares OSY can receive each year is limited to 1,500,000 shares.
Zoono and OSY are currently working together to secure the first customer for the Zoono product and application technology. That customer is expected to be the premium UK supermarket chain which was directly involved in the development program. Zoono’s initial expectations are for product sales of circa $1.17m in the current financial year.
Zoono and OSY will be concentrating on niche markets where they can create significant cost savings opportunities for its customers. This is especially the case for food producers, supermarkets and grocers where the estimated savings to these organisations are likely to be significant.
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
- Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
- Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
- CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
Leave a Comment
You must be logged in to post a comment.