Innovative Kiwi antimicrobial packaging products developer Zoono slashed its losses in the first half of the year, and has two major UK supermarket chains about to do a test roll-out of the new packaging technology for in-store berry products.
The half year to December saw Zoono’s losses fall to NZ$1.3m, compared with a NZ$5.9m loss in the prior corresponding period. Revenue for the half year rose by 11 per cent to NZ$711,000.
Zoono, and its partner OSY Group, are currently conducting 29 shelf-life extension trials in twelve countries across four continents. The trials involve a diverse range of customers, including supermarket chains, food producers, packaging companies and exporters. Zoono says the process to implementation in supermarkets is taking longer than expected due to ‘the conservative approach of large UK supermarkets’ who it says are demanding ‘extensive testing’.
Where the earlier trials were focused predominantly on soft fruits, that focus has now broadened substantially to include other fruits and vegetables, meat, fish, poultry, bread, ready-meals and fresh flowers. According to Zoono, all tests and trials to date have been successful, Zoono saying the results validate its belief that its technology, coupled with OSY's application methodology, can assist with the reduction of food waste globally.
However, Zoono’s claims will be tested in court. The NZ Commerce Commission has instituted proceedings against the company regarding its marketing claims relating to the longevity/ efficacy of its products. Zoono says that as it, and its clients, have conducted more than 200 independent laboratory tests globally confirming the efficacy and longevity of its products, it is confident of defending its position in court, and says it will strenuously defend the proceedings. The court case has been set down for 4 May next year.
The company says it is ‘disappointing that commercial uptake of the packaging technology is taking longer than expected’ , but says it is encouraged by the level of interest in its products and the potential for future long-term revenue streams available from this niche market. It says its confidence is founded on the fact that the trials have demonstrated ‘an extremely compelling case’ for any supermarkets willing to invest in the new shelf-life extension technology – and it says the return on investment is more than five times.
Zoono is also in discussions with several large packaging companies that supply UK and European supermarkets. It says it is also making some progress in its target Asian markets of China, Korea, India and Japan. It expects orders in the second half of the financial year from a large Japanese pharmaceutical company.
The company says despite its losses it has the funding to meet its objectives, and says it has access to more funding lines ‘should they be required’. It currently has NZ$785,000 in cash reserves.
