Zotefoams Share Discussion Threads

[deanowls] 17/5/2024 08:47

I was wondering whether or why Tetra Pak haven’t dropped in. If you go and read up on Wikipedia it details the issues they have with meeting their goals and the steps they have to go to I.e sustainable forestry to meet their obligations. The costs that this would save them and locking it in would be huge! Just having licensing agreements is a low capital cash flow dream here.

[redartbmud] 17/5/2024 08:31

Says it all.

Wonder if a big boy might snap it up?
Even after paying a large premium to the current share price, it could be a cash cow for a decade or more.

red

[someuwin] 17/5/2024 08:05

Singer Note...

Notes from yesterday’s ReZorce media launch – increased confidence in the opportunity

Zotefoams hosted a press conference yesterday to showcase its unique ReZorce technology. ReZorce is seeking to disrupt the beverage carton market with its fully recyclable & circular mono-material; barrier packaging solution. We came away with greater confidence in the scale of the opportunity and journey ahead. Changing ingrained practices is never easy but it is clear to us that with ReZorce the hard yards have been done. The critical next steps on this journey are a) passing the quality & compliance testing ahead of live in-store trials, a matter of when not if, and b) finding the right investment partner to support the scale-up of ReZorce and unlock value. We highlight in this note some of the key messages from the event showing that a) there is an undisputable need for a technology like ReZorce and b) that ReZorce has the hallmarks of a once in a generation game changing technology. BUY rec unchanged. We remind investors that our 500p target price only has c.25p in it for ReZorce, highlighting the significant option value that it brings to our investment case.

An undisputable need for a technology like ReZorce

 Existing liquid packaging board (LPB) technology is over 70 years old and has barely changed since. The plastic is bonded to aluminium, which is then bonded to wood fibre to create an aseptic package (c.25% plastic, 5% aluminium, 70% wood fibre).

 The composite nature of existing LPB makes it very difficult to recycle. Because of this, c.75% of beverage carton packs are currently incinerated or sent to landfill p.a. which produces c.6m metric tons of carbon emissions in Europe alone.

 c.250bn liquid packaging cartons are produced annually. To support this, given the wood fibre content in LPB, the equivalent of 68 trees need to be cut down every second (!).

 c.93% of what is produced in the world doesn't get re-used (i.e.: is not circular) which is clearly not a sustainable path for the planet. There is therefore a pressing need for technologies which address the problem of circularity, as ReZorce does.

 FMCGs are struggling to make progress towards meeting EU regulation which requires brand owners to deliver 30% recycled content from 2025 as they don't have access to a fully circular solution which is scalable. Food safety legislation also requires that only virgin polymer has direct contact with food. Failure to meet regulation will become a huge burden for brand owners which is positive for ReZorce adoption

ReZorce – bearing the hallmarks of a once in a generation, game-changing technology

 ReZorce cartons are the first & only fully recyclable, truly circular beverage cartons.

 Compared to conventional LPB, ReZorce uses 51% less water, has a 53% lower carbon footprint and c.50% lower energy consumption.

 ReZorce is a simple, mono-material technology whereby nitrogen is injected in polymers to create a foamed core. As a mono-material, it is much easier to recycle efficiently compared to existing LPB which are composites.

 Every ReZorce pack will have a QR code which will provide consumers evidence of the full life cycle of the polymer used in the production of the carton, as well as details on its recycling content. We think this is important given that consumers are often confused by claims from current packaging providers regarding their recycling credentials. ReZorce offers a simple, easy to understand message for consumers with no room for confusion.

 ReZorce’s performance matches current materials on important KPIs such as shelf-life and robustness of the material.

 The material is non wicking meaning, unlike existing cartons, it can be used over a period of a few months and not get soggy like an LPB carton would. The material is also microwavable, unlike LPB, because it doesn’t have aluminium foil inside.

 The initial target market is aseptic cartons (valued at c.$12bn in Western Europe & North America) but there is a myriad of opportunities beyond that including pouches ($6.6bn), flexible packaging (c.$90bn) and trays (c.$10bn).

 ReZorce is fully compatible & interchangeable with existing beverage filling line set-ups. It only takes a couple of days to repurpose a filling line and once done the line can be up & running within a few hours. All this can be done at little additional capital cost. This is a critical point as one of the biggest challenges in the transition to a green economy and adopting new technologies is the cost of enacting the transition.

 On pricing, the goal is to get to parity with existing LPB but ReZorce is not there yet as it needs economies of scale to come through first. One should also consider positive externalities such as more favourable deposit return schemes for fully recyclable products like ReZorce or the possibility of higher taxation on non-recyclable products.

 ZTF is not alone on this journey to bring ReZorce to market – with an ecosystem of 22 world class partners to make this happen. This gives confidence that there is a strong network in place to move ReZorce forward. Of note, we highlight its joint development partner Refresco which will produce & fill the cartons and support commercialisation; Biffa, which has validated the recyclability of ReZorce, and SudPack, a leading manufacturer of high-performance films for the packaging industry, which has signed an agreement with ZTF to scale up the technology to 100m cartons. But if the technology is successful, this number will just be a waypoint on a much larger opportunity.

[dubai123] 17/5/2024 07:17

Thanks tonytike2 I think the bad point I am making here and why I continue to buy shares even yesterday at 485 is if refresco think ReZorce is off the clock and they make the cartons , the regulator gives its seal of approval and the people who deal with it when it's throw in the bin BIFFA validate it then why will commercial sales not follow. The market has been looking for the solution for years and here we are owners of the IP that deliver it anyway no more posts ( for a bit anyway)

[tonytyke2] 16/5/2024 23:09

Thanks Dubai123, a tremendous read with some excellent detail. Things are moving very quickly here, talking about Q3 on shelves. It just sounds like there are customers just waiting for when this will be available in mass volumes.This area is going to be huge for ZTF, all very exciting may I add.

[money never sleeps] 16/5/2024 22:17

It looks every bit as good as the early promise suggested it would be. In time the market will properly wake up

[geraldus] 16/5/2024 19:22

Fantastic article Dubai.Very quite on here considering.

[geraldus] 16/5/2024 19:06

Looks like you need to sign up.It's free and only took a couple of minutes.Could be worth it for future events.

[dubai123] 16/5/2024 19:05

Taken from www.packworld.com

[dubai123] 16/5/2024 19:04

Press - Timing looks very exciting- Refresco to Disrupt with Mono-material, Aseptic, Food Contact HDPE/rHDPE CartonExpected to be on shelves by Q3 is a game-changing new aseptic carton format. While brands swap plastic for paper, reZorce flips the script with circular, mono-material HDPE/rHDPE for paper. Finishing validation, CM/CP Refresco will be first to market.

[geraldus] 16/5/2024 19:03

https://www.sustainableplastics.com/news/zotefoams-inks-deal-sudpack-100-hdpe-beverage-cartons-production

[geraldus] 16/5/2024 18:59

https://www.sustainableplastics.com/news/zotefoams-inks-deal-sudpack-100-hdpe-beverage-cartons-production

[dubai123] 16/5/2024 18:37

There is so much out there following the announcement yesterday . still struggling to comprehend the significance. The CEO of Recoup is the UK's leading independent authority and trusted voice on plastics resource efficiency and recycling who said Great to be a guest at this event. The new rezorce pack ticks alot of boxes, lots of evidence to back up the strong circular claims, and a new mono hdpe carton product using innovative zotefoams tech. Always good to hear from our friends at Biffa with Chris Hanlon and other panellists talking lots of sense about quality, collections, consumer journey, legislation and recycling reality. Impressed. RECOUP BIFFA who said Rezorceis a more sustainable alternative to the traditional multi-layered carton design as it's made from a single lightweight foamed HDPE material that can be easily recycled. Biffa helped with the testing of the material at its HDPE centre of excellence facility in Redcar, advisory support on the design of the product for sortation and processing, as well as the provision of our high quality rHDPE. Chris Hanlon, Commercial Director, Biffa Polymers, was among the guests at today's launch, sharing his insight and expertise with industry peers and trade journalists. Chris said: "ReZorce packaging presents the opportunity not only to increase the availability of high-quality recycled HDPE in the UK, but also to improve packaging circularity more broadly, and we look forward to seeing how this space develops into the future."

[geraldus] 16/5/2024 10:30

Nice one.DS said they could bring in other extruders.

[dubai123] 16/5/2024 10:24

Did not see the below in yesterday's RNS it was on a LinkedIn post which said. Additionally, we announced our partnership with film specialist SÜDPACK Group, enabling Zotefoams to produce a potential 100 million ReZorce cartons annually in addition to our in-house capacity. So in addition to their own capacity they have firepower already to 100 million cartons units

[edwardt] 15/5/2024 15:23

of unilever that is.

[edwardt] 15/5/2024 15:22

if the old ceo is singing our praises that should really get the market's attention...

[citys2874] 15/5/2024 12:36

NICE RNS and good morning for ZTF and KDNC expect both to rally this afternoon

[paulisi] 15/5/2024 10:53

It's confidence to the market that this is proceeding

[money never sleeps] 15/5/2024 08:56

It's a welcome update.But at first sight there is nothing new apart from naming the players involved. I am pleased with the progress and will also add to my holding over the coming weeks

[janeann] 15/5/2024 08:51

As long as they protect the IP… don’t want any leaks anywhere!! Especially after the tie up with the Chinese!!

[tonytyke2] 15/5/2024 08:25

Cracking update, and you can now see communicating a future project milestone of a trial market launch with a european retailer.Now looking to add further, good luck all with your investment here.

[geraldus] 15/5/2024 08:22

Yes and DS said,he isn't aiming for a small percentage of the market.They'll be going at it with spades,not knives and forks.Pity he is off soon.

[dubai123] 15/5/2024 08:17

This is so significant. Remember that should they capture a tiny portion of the the market it's worth more than the total market cap of Zotefoams

[livewireplus] 15/5/2024 08:04

No live quote anywhere as far as I can see .....