That nationwide product is good news. It's great to see them constantly turning out new achievements.
Printable View
That nationwide product is good news. It's great to see them constantly turning out new achievements.
And great to hear all you pet lovers getting enthusiastic. That suggests that Blis sales into the pet market may have some promise!
Interesting to note that the Jarrow gum is/will be for sale at Whole Foods Market, which Wikipedia describes as a supermarket chain (revenue $9 billlion, 55th largest retailer in the US 2005). That's the first supermarket outlet for Blis, isn't it? Therabreath Multi Symptom Probiotics is in Walgreens (wiki reports is the largest drugstore chain in the US). And Bioguard Advanced is selling in Costco, warehouse/wholesale retailer. We're not sure, but I assume other supplements are largely for sale in "vitamin shop" type outlets.
Thus Blis is now available in the US in at least one example of every main large type of sales outlet except petrol stations and hardware stores, and maybe large in-shopping-mall general retailers (Farmers like). Have I missed something maybe? It's definite progress.
Any predictions for the AGM? I would like to go, but I am in Auckland.
Not from me, TheOne. The current world situation is sufficiently complex that expectations are pretty hard to form for any company whatsoever, no? Sovereign debt has rather taken over the news lately.
Blis is a plucky little company with plenty of wits and abilities, and great products. It will be interesting to hear updates.
The update for another AGM released. Very interesting, as always. Many thanks to the hard working team at Blis who probably feel they deserve an easier time from the world economy!
https://www.nzx.com/companies/BLT/announcements/211826
GRAS status achieved. "GRAS status, will dramatically expand market opportunities for the company", "The company has plans to immediately start promotion to food manufacturers such as ice cream, yoghurt and other dairy producers in the United States."
And just when you thought Blis couldn't tell us the unexpected any more, "the company has acquired the assets of the Dunedin based ice-cream company, The Gourmet Ice Cream Co", "it provided necessary cash flow to assist in the global roll out" and lets Blis into the dairy market.
Exchange rate and sales revenue mean "an increased operating deficit in the current financial year". Accordingly, "The terms of the Share Purchase Plan including the price for new shares will be announced in coming weeks."
https://www.nzx.com/files/attachments/143347.pdf
In the presentation, "For food applications, yoghurt, ice cream and powdered beverage are the initial delivery vehicles planned." Powdered beverage is a new one?
Well, GRAS is meant to be the big one ("dramatically expand market opportunities"), but they apparently don't expect that to show on the bottom line this year ("an increased operating deficit in the current financial year"), but which has just 8 months left to run now. However, might we shareholders reasonably hope for things next year?
We live in interesting times at present, so we will no doubt see how this all plays out. Meanwhile - and as always - individual investors have the opportunity of judging the return they expect on Blis in future and to decide if each views the current share price as an opportunity. That's what news is for.
!!! Great news from Blis and well done for gaining GRAS approval!! Now if you guys at Blis can just hurry up and make that ice cream available in Auckland...and Nigel the cat is waiting with baited breath for a feline version of Throatguard (he went to the vet on Wed to have his teeth cleaned at over $400, so if K12 works on felines this should save him money in the future)
The new NZX page on BLT seems to be stuck showing Thursday's prices for this weekend. A glitch presumably, as it's a new look site.
Actually the price rose. Here's a different site to view in the meantime if you want http://home.nzcity.co.nz/finance/sha...spx?symbol=BLT
SIMILA you must be looking in the wrong place this link up to date according to DB https://www.nzx.com/markets/NZSX/securities
Thanks. I think they must have fixed it since then, as my link now works too.
Hard to know how to react to the news. The GRAS is excellent news, of course. We just don't know what to make of it. Wouldn't it be great if we were looking at this potential: "Yakult Honsha Ltd of Japan, managed to sell 30 million bottles of probiotic drinks a day throughout the world" http://thestar.com.my/health/story.a...health/7877605 But that is presumably after some considerable effort and time. That article also says they make "280,000 bottles of Yakult per day to give this new entrant to Malaysia an estimated 30% of the local cultured milk pie".
That article also discusses the advertising aspect of probiotic foods. In Europe we know things are tough, but which Blis has reported they see some room for hope with. In the US, the advertising of food probiotics seems to be controlled by the Federal Trade Commission (FTC), who are stirring the pot with probiotics, but are quoted in that article as, "Companies shouldn’t exaggerate the strength of scientific support for their products", which leaves plenty of room to advertise still - especially given the strong research with Blis already.
If GRAS means Blis can more directly advertise the benefits of the probiotics, that could be pretty good.
NZ and Australia are looking at doing that too with Proposal 293 http://www.foodstandards.gov.au/food...relatedclaims/ but that has been in the pipeline for many years. http://www.foodstandards.gov.au/cons...andard5081.cfm Still, it looks like it will make it into law sometime, but not yet. I haven't found anything yet on what the various Asian countries require.
In the meantime, there is some money to raise, and more partners and more market penetration to pursue, along with more regulatory work. The company is obviously a whole lot further down the road than it was though. And meanwhile in nationwide distribution, they now have Bioguard Advanced, Therabreath Multi Symptom Probiotics, and Jarrow Oral Probiotic Gum, plus numerous supplements across the US, and in multiple countries.
What to make of Blis buying the ice cream company? Who knows!
Very interesting AGM, did anyone here go? I would never have guessed the acquiring of Ice Cream company! I bet there must be very good reasons for it other wise Barry Richardson would not be interested. Must have beeen a great deal. There are lots of possibilities. As usual they have a lot of things going on. I think the Blis team does a great job and deserve congratulating. I am suprised the shareprice wentup so much, i thought the SPP would have scared people. Hopefuly the US dosent turn to custard even more, so they can sell decent volumes.
Well, each investor has to make their own decision of course, TheOne. But the SPP is a two way street. Yes, it involves raising money. But afterwards, don't you have a company with cash in the bank, and GRAS in it's pocket, plus product credibility in the marketplace? Well, that's not too bad a proposition is it? Each to make their own decision on that, of course.
Achieving GRAS is excellent news!!
Personally I hope the shareprice falls over the next month or two :)
I don't understand why they (i.e. we!) are buying an icecream business, and I'm not happy about it. I thought I was investing in a Biotech and that old homily "Stick to your knitting" comes to mind. Barry has a milk-products background and maybe he sees an opportunity, but this venture is not part of the Blis business strategy the rest of us shareholders subscribed for.
Yes, I agree. Do we know what BLT paid for the Icecream business? I can only assume that it is a very profitable business that will pay for itself in less than 12 months. Otherwise it should be left for Tip Top to purchase.
The GRAS news is excellent however and more aligned to the Business Strategy.
Some of you may like this. This company has added M18 to their existing K12 product. They don't state exactly what's in this, but it appears to be a plain lozenge with just K12 and M18 in it. If so, it's the first one I've seen without lots of other stuff added on the side, which seems pretty sensible.
http://www.carotec.com/product/Blis-K-12_30/21
I know that this is a few months old but bear with me...
Blis and Nestle partners in new programme
Sat, 26 Mar 2011http://www.sharetrader.co.nz/files/u...07__Small_.jpgBarry Richardson
A more "robust" Blis K12 probiotic has become commercially available and a new multi-year research and development agreement has begun.
This includes a Nestle option for rights over a "specific application" of the Blis K12 probiotic, Dr Richardson said.
"The exact nature of the current research and option agreement between Blis Technologies and Nestle Nutrition is commercially sensitive and confidential," he said.
When allied to the recent GRAS approval is this a cause for optimism? Could this be a food product that they have been working on for a while knowing that GRAS was a given?
Nestlé is the world's largest food and beverage company.
I recall reading on this site a few months back that there was a K12 product in Germany that was developed for treating canine bad breath. I have googled but have been unable to find any link to such a product. Given the safety record of Blis I have been giving my cat a small dose of Blis K12 by sprinkling Blis Boost powder on his cat food. Knowing how cats are VERY suspicious of anything being added to their food I was surprised he took the treated cat mince food very readily. He is an old cat who recently had his teeth cleaned to reduce his bad breath problem - this helped, but the addition of K12 has improved his "breath score", he no longer has his persistent hacking cough and he appears very healthy. I have no idea whether Blis K12 would in fact populate his oral cavity and whether his improvement is due to K12. If K12 was effective with cats (and dogs) this could be a significant market for Blis, though would entail significant studies to confirm If anyone can supply me with the link to the German product for dogs, this would be appreciated.
It was German language, but in Switzerland. http://www.dara-swiss.ch/produkte/halitus/index.html But the product is surely going to do just what the NZ K12 does, so that might be a cheaper option. Especially if, as you say, your cat doesn't carefully eat his way around it as cats do!!
Thanks simla
If the Blis Boost powder works it will be more economic than getting the little b****r's teeth cleaned at $400 a go! The vet stocks a canine mouthwash that looks not unlike Colgate Plax, but less volume and costs over $30 a bottle which is apparently added to the animals drinking water. I doubt if most cats would touch it given their fussy natures. Nigel is quite unfazed by the Blis Boost K12 powder and licks the dish clean. I had some reservations about experimenting K12 on him, but given it's GRAS approval I am certain it is harmless on cats and heaps safer than the flea medications we subject our animals to each month. Given the wide range of products the pet shops and vets sell I would think that Blis K12 (if proved effective on cats and dogs) would be an interesting market for Blis probiotics.
Sorry, Brucea, I have no idea if you should give K12 to a cat. Not my area.
I wonder when we'll hear more about the SPP?
And there's the SPP details announced. It seems a fairly shareholder-friendly issue at first sight, which is good.
""and will participate equally in all distributions""
this is in the last line of the SPP.
now....... what have i missed..... i have never had a distribution, unless they mean my $100k has been distributed to management over the last 10 years.
i think this is an unfair statement by the company intended to sucker in more punters by hinting at a distribution.
anyone here buying their maximum share of $15k?
Looking to raise 39 million??
If all 2535 shareholders put in $15k, then yes, $38m seemingly. But only 8.6% of shareholders own over $5000 of shares (valued at 5 cents, as in this offer - ie over 100,000 shares.) (p47 of the last report).
I'll read the prospectus first NeopoleII, but personally I don't mind backing the company some more. But each investor will have their own ideas on this one.
Being a prospectus (presumably) we might learn some interesting stuff, too.
So do we expect the shareprice to fall under 5c tomorrow? After all, why wouldn't you sell to the guy offering 5.5cents, then buy back at 4.85c?!
Plus there will be a dilution of holdings once the extra shares are issued.
I never thought we'd see 4-5 cents again, but hey, I think we may see it in a day or two! Despite the wallowing stock price, I think there's still a decent future for this company. A lot has been achieved in the last few years, yet the shareprice hasn't gained any traction! One day (maybe).
My thoughts (without having seen a prospectus (so they may change)) is there has never been a more sensible time to buy into Blis than now, and at this price it is a very tempting opportunity.
Personally I have been keen to buy more over the past year or so but the numbers traded are so low I haven't had the opportunity.
I suspect Blis has another two years before grocery sales (made possible with GRAS) start to have a substantial effect on revenue but I have no doubt Blis will get there given adequate funding.
The Blis investor news page currently has a "letter" with more on this, under "Share Placement and Share Purchase Plan". http://blis.co.nz/default/investor-r...ions-news.html
That letter said sales growth so far had been "much slower than expected by our major distributor". p2. http://blis.co.nz/media/pdf/PMH-4936...1_FINAL_v2.pdf
It's mentally reassuring to hear the company say they had hoped for more in sales growth by now, too. It wasn't just our little group here who hoped that was a reasonable possibility. But it's a tough market out there just now.
Well, that's details of the Share Purchase Plan. When will we hear about the Share Placement?
this share is nothing but a dog and has been since it was first listed. Why anyone would throw good money after bad is beyond me. Do yourselves a favour, cut your losses and walk away.
Yeah, not exactly a stellar performer on profit so far.
However,
1. The company is still aggressively expanding.
2. Long term investing is still legal !
3. Some of us are quite happy to invest in the future of the country our children will live in.
i have a growing suspicion that some blt holders are trying to shift the sp, or are silly beyond measure.
who could really justify buying 1000 blt for all of $60 plus 50%? for brokerage?
methinks there is a gamesplayer among us.
everyone should take serious notice of volumes changing hands -- and forget all chances of finding trends...
"Market in awe of $60 bid!" Personally, I've thought for a while that some fund has a small holding of BLT and is obliged to make small mathematical adjustments from time to time, presumably brokerage free.
I wonder when we're going to hear more about the share issue?
Here's a story on the ice cream. http://www.itmaru.org.nz/newsline/?p=1444
"Gourmet Ice Cream sales manager and former owner ...said the K12 ice cream was still a couple of months away from public release. “We want to get some experience with the local market before we start exporting,” he said. “There is a huge amount of potential, especially in the Asian market.”
This perhaps counts as a new product format of K12? It looks interesting anyway. "Consuming one child-friendly, bear-shaped supplement each day can help prevent common ear infections and sore throats in children." "Each package contains 20 vanilla-flavored chewable BLIS K12 bears, sweetened with Xylitol, a natural sugar substitute. " http://www.nutritionhorizon.com/news...-Children.html The company seems to be in Israel.
I can't find a photo, but this might be a similar concept product from the same company? http://www.anlit4kids.com/web/8888/n...48&lang=EN&SM=
"Anlit will launch the new supplement to retailers, marketers, pharmaceutical and dietary supplement producers at CPhI. [on October 25-27]"
The "terms and conditions" on the SPP have arrived in the mail. It says the maximum share issue is about 41m shares (clause 2.8 (b)), at 4.85 cents (cl 2.2), or about $2 million (by my maths, anyway). All applications reduced on a pro-rata basis if that is exceeded (2.8 (b)). https://nzx.com/files/attachments/145628.pdf
Blis announces Edinburgh is applying for $500,000 worth (about 10m shares I make that) https://nzx.com/companies/BLT/announcements/213516
So, unless there are other parties to the Share Placement, then the total to be raised should be $500,000 plus whatever the shareholders will cough up, to a maximum of around $2m. (Check all the maths yourselves, naturally.)
At this point, then, and if my maths is right, that looks like a tidy new issue that doesn't dilute existing shareholdings too much, but should put the company on a stable footing for cash for a while. Personally speaking, I'm pretty comfortable with all that, and will send in a cheque.
But each investor will make their own decision obviously. Currently, confidence levels are pretty low around the world, and many will be fixated on that. Others may expect the sun to still rise in the morning regardless of all that. And the company has yet to make a profit, of course. But it also has a reasonably solid business story to sell, too, depending on your point of view. Presumably some small shareholders might see this as a chance to cheaply stock up a bit, if they like the company's business position.
It will be fascinating to see just how much shareholders cough up. The $1000 minimum might attract some, too.
Whatever happens, I'm happy to thank the company for running an issue that (as I read it presently) seems fairly shareholder-friendly. I hadn't expected it to be quite so early, but I'm happy with that too.
http://www.youtube.com/watch?v=AIA6p...layer_embedded
Amusing and educational for the younger viewer :)
I haven't decided whether to apply for shares. When I look at Blis they have consistently overpromised and underperformed. I think the product is unique and has a lot of potential but without expert marketing and reliable forecasts I don't trust them. I think their expetise is in R&D. To succeed they need to be expert marketers. They have created some partnerships that have potential but without better management and marketing I'm skeptical that they will ever perform. Even companies like F&P Health with a proven track record and outstanding growth prospects aren't performing well on the sharemarket as most people don't want to invest long term (and the exchange rate isn't helping returns).
Tango I think you are right great product but nobody is buying it because they don't know about it or the benefits of using it the You Tube link (thanks Emearg for posting that link) was good but the yanks realise the health benefit of a healthy mouth and throat, having said that the You Tube video wasn't promoting Blis. Marketing is the key, when the penny drops in the public eye will Blis have disappeared from view, I think it will have run out of money by then. If blis can get the public to want to buy the stuff in products, companies are gonna want to put it in their products until then they are still selling chewing gum, yoghurts, milk, mouthwash, toothpaste etc. People don't realise that an unhealthy mouth can cause strokes and heartattacks etc. if you look back in time oral hygiene killed off millions before we developed a good understanding of medicine.
Yes cute video.
Bad breath is one of the top health concerns that people have. It should be a cinch to sell the product. The fact that nearly every report from them starts with something along the lines of "sales for the period have been below forecast" says that they are either overly optimistic or crap marketers. If you look at their website and imagine you have no idea what a probiotic is (lots of people don't know the word) or what ThroatGuard will do and you can see why they are failing. If their website doesn't convince you to buy I think it's a reflection on their overall marketing.
I'm really torn. The part of me that believes the product and the technology is world class wants to invest more money. The sensible money says
- It's throwing good money after bad - they consistently underperform against forecast
- I want to strangle the Board for further devaluing my shares by issuing them at such a low price
If only they would get someone on the board who has a proven track record for taking new biotech products to market.
Looking over the old press releases reminds me... I was in the US last month and there was no sign of the products anywhere in any drug store or health store. They must have extremely low market penetration. I spent a lot of time in the various chains (Walgreen, Rite Aid, CVS, Whole Foods) in 4 different cities. There were lots of probiotics and bad breath remedies but Blis was conspicuous by their absence. To me the fact that the stores didn't reorder says that Blis didn't do enough marketing to drive consumers into the store to purchase, or provide packaging or point of sales to support to encourage customers to try it.
Well expressed tango; I have continued to support Blis because I considered the product had great potential, but alas even in NZ there is hardly any awareness of Blis K12 among most people I have spoken to. The promotion style of Blis K12 seems to me to be rather staid and conservative, hardly the stuff to encourage people to buy it. I fail to see how things are going to improve even though Blis K12 has GRAS approval unless there are significant changes in strategy at Blis. I will apply for more shares one final time, despite my flagging support for Blis. I enjoyed the video but could not see any connection to Blis K12....
Certainly the sales are the issue. To improve sales requires one of three things: (a) BLT's partners successfully connecting to lots of customers; or (b) Something making it easier to advertise; or (c) The company working out how to improve things within it's own resources.
It certainly has been the intention of the company, right from the beginning of this strategy, to engage with partners who can successfully market, on the grounds that BLT doesn't have large resources. And that strategy has been to start with smaller companies to engage the interest of the bigger companies, which makes sense. Now, the latest release from the company today https://nzx.com/companies/BLT/announcements/213865 says "we have been actively engaged in discussions with some of the world’s largest dairy producers". So GRAS may open some doors to more marketing clout? Or to more welcome products (even a tiny percentage of the US yoghurt market would be good news surely.) Also, as I read GRAS (and I have struggled to find a clear statement of this sorry), the restrictions of advertising the benefits of Blis are much eased with GRAS. Dietary supplements have considerable restrictions on advertising, but GRAS seems to let you make open claims so long as you can prove them. However, even if I've read that right, it still requires someone with marketing dollars.
BLT sales revenue for the last three years have gone: In the US 325k, 760k, 976k; in NZ 146k, 192k, 217k. Elsewhere has been up and down. So the dietary supplements revenue is growing fairly strongly, but from a low base compared to expenses. Will GRAS see that change? (And will Gourmet change that?) Will one of the business partners make a connection with a large customer base? Will a large marketing-oriented company sign up? Will opening into a consumer market such as yoghurt change things? Certainly, from my point of view anyway, the dietary supplements revenue will eventually pay off, but not seemingly in a hurry unless someone breaks through to a bigger group of customers. So GRAS is welcome to me.
I have bought shares in this issue personally because I see a viable dietary supplements revenue coming up from below as a backstop, but I hope that GRAS will change the game. Clearly the company is hoping so: "We understand this [yoghurt/dairy] market very well and definitely see ourselves operating within the global dairy industry in the future", and "Until now the Company’s BLIS K12 probiotic has been limited to sale as a dietary supplement, which is a small market when compared to the massive food industry in the United States", and "GRAS status is expected to rapidly expand market opportunities for the company and enable the BLIS K12 probiotic to be sold to many major food manufacturers in the United States" (nzx rlelease above.) However, I'm also proud to support a Kiwi company in it's hard working efforts. It keeps a few more NZers working, and stops more brain drain, while bringing a really good product to NZ and the world.
It's a start-up company still though. We don't know how this is going to work out. Each must make their own choice what to do now.
I see this company disappearing unless they get some major publicity every dentist and health practioner should be touting this stuff on their patients get them on your side blis and you have a winner
I wonder if selling it as a dietary supplement is the right approach. Look at Listerine - sold for bad breath as part of the teeth brushing routine. It's cleverly marketed as being horrible tasting but effective.
Scuffer is right about the dentists as an avenue for promoting the products, and as Brucea says the promotion is staid and conservative. It's also too technical: they focus on the technical aspects of the product rather than the end results (better breath, reduced risk of throat infections etc etc). They're not thinking about what customers want they're thinking about the product. They need to think about their market.
As for the dairy market, Fonterra would eat this product up and market the heck out of it. Look at their Symbio probiotic yoghurt. They've got Lorraine Downes of all people marketing it for digestive health and flatulence!!! Personally I'm not convinced about ice cream as the delivery method for the Blis. For one thing, it's high in sugar and in a world of obesity and diabetes ice cream is a treat not a daily food. It's also seasonal. Plus being high in sugar will multiply bacteria. Whether it will multiple only the good bacteria or only the bad, I'm not sure but I think it's a strange combination. They need to market it in things that people can carry with them and pop in their mouth or as part of their daily routine to have with breakfast (which makes yoghurt a better choice), as a pill, etc. They've done a lot of things right with the product development but the marketing is crap. When you look at the Board the Chair supposedly has a background in strategic planning but it's from a technical perspective i.e. developing the products, getting FDA approvals, protecting IP. An innovative marketer could do amazing things with this company.
Who here is buying their allocation? I'm inclined to let it pass until they can start producing reliable forecasts and show they are getting on top of the marketing. Creating partnerships is great but they're relying on other companies to market it (other than doing an ecommerce website for direct sales. It seems to me that they're going to expand into Europe using the same tired marketing. It doesn't matter how good the product is, you can't sell a secret and you can't sell something that people don't understand.
I think that these guys are doing something very worthwhile though the company's limited resources don't make their task an easy one.
More and/or better marketing may well be the answer in the dietary supplements arena but it's an expensive exercise, results aren't guaranteed and without GRAS approval, claims about benefits would have been quite restricted. Now that GRAS has been achieved the door is open to change this game to some degree but the food industry is surely where the prize really lies.
I'm heartened by the news that they are in discussions with some of the world's largest dairy producers (Fonterra may well be one they are talking to) as the opportunity in the food ingredients market far outweighs anything that could be achieved in dietary supplements. Blis will never have the financial resources to initiate promotional campaigns of the scale required to attack international markets but the Fonterras and Nestles of the world certainly do.
I'm buying more shares. Even though it feels a bit like taking a fairly expensive Lotto ticket I believe that the chances of a win are much better - even if it's only a second division prize I'll be happy.
Good analysis!
I bought the shares when they were around 9 cents so I've lost a bundle already.
I agree that they're unlikely to succeed without more money, but that's only because of the way they market. There are cost effective ways of marketing but as their marketing material, packaging and overall approach needs improvement spending more money wouldn't help. Yes, a partnership with Fonterra would be exciting and the products are unique and have lots of potential. The execution needs improvement and so does their forecasting. I'd trust them with more of my money if they weren't constantly making forecasts they fail to meet, or if they were a well known brand here in their home country.
Guys, let's just remember that these guys have soldiered on in the face of very difficult times in every country in the world. An important reason for my putting more money in this time is my own confidence that these guys don't give up.
We all want them to do what they can to increase sales. Sure. But it would be absurd to think they want anything else themselves.
As yesterday's release said, "The Company has been entirely focused on obtaining GRAS status ... for the past two years." The release surely is saying that they think this is an excellent path to increased sales. They planned on getting GRAS earlier, but it just kept getting harder. They pressed on anyway. Then got it. Yeah, that cost.
So, surely they HAVE announced a major plan to improve sales - GRAS - and are working hard at it. Will that work out well? Would a different plan be better? (Anyone actually got one, given the resources?)
Well, every investor has a decision to make there. Investors can only reap the rewards of their own decisions, that's how it works.
But let's not use a complex decision to overlook how hard these guys work. I'm always happy to thank these guys for all their work - I do it again now - because I think we are very lucky to have them. They've moved small mountains already.
I had not read the Blis release on 16/9 when I posted my last message; since reading it I am pleased I had already decided to invest further in the BLT share offer and am willing to soldier on supporting the company. As I have said many times before I consider K12 a great product and has a huge potential if marketing is a successful. I watched a documentary on TV7 a while back on how bottled water was marketed - how many of us would have invested in such a product given it is on tap and free (almost). BLT shares were always highly speculative, so I have taken any share value loss on the chin. And let's face it - BLT is not a boring share for those of us willing to take risks! All the best you guys at Blis for the foray into the food industry.
Like I said when this capital raising was announced I don't think there has ever been a better time to invest in Blis
With GRAS achieved Barry and Frutarom have an opportunity to sell their product into a huge market. Based on the successes achieved so far (uptake by manufactures of lozenges etc (even though revenue growth have been underwhelming)), and on-going support (500k speaks volumes IMHO) from insiders I am more willing to back Barry and his vision than ever before.
I'm in for 15k
I know it is quite a different situation, but I hope this doesn't end up like BIO-ICP a few years back, burning it's investors (including me). Seemed to have so much promise......
I don't think working hard means anything without core marketing skills. Yes the GRAS approval is a major milestone but I don't think that perserverence alone is nearly enough to be blowing $15,000 on a company that doesn't have the fundamentals right. Yes, they may work with other companies that can effectively market it but their strategy is confused. They've announced an ecommerce platform to sell direct to consumers but at the same time they're looking at partnerships. They're not doing either one of those things well, so far. Have they got an amazing product? You bet. If you want to take a punt that they will partner with someone that helps them develop it into a more marketable proposition then I guess it's worth buying a $15k lottery ticket. I'd rather put my money somewhere else.
That's fine, Tango. As I've said before, I'm never here to advise anybody to buy, sell, or trade Blis or any other share. Every investor has their own decisions to make. I'm just here to have discussion on publicly available information that we each may find each others' thoughts - such as you've just given - helpful in clarifying our own thoughts. I expect that the time when we all finally agree with each other will be the time when BLT is making a cheerful profit! First that has to happen, and no guarantees with any startup company on that, of course.
Gosh, must have been over a year that I last viewed this thread - and it feels like Groundhog Day. Well, not quite. There is a new generation of rightfully sceptical investors who are getting the hunch that there is something serious wrong with this company.....and then there is 'simla', still the cheerleader for Blis' management, which after so many years of such miserable company performance goes beyond being a supportive, optimistic investor....to me, it's crystal-clear now: Simla is either an employee or Blis or a person otherwise affiliated with Blis (and not just as an investor).Simla, the only decent thing for you to do would be to 'out' yourself for who you are, so that forum members here can see your comments for what they are .... pro-Blis PR intended to suck more poor buggers into spending money on this money-burning furnace of a company.
Hey, Impatient! Nice to hear from you again! Points to you this time, as the situation has altered definitely, but regrettably not to produce a profit yet.
And good to hear you gingering things up still. I'm afraid I remain nothing more than a keen investor, however. I say nice things about the company just because that's what I think. To me, the launching of the product is a big challenge, but the reward should be equally big if it succeeds. I have always, always, referred to the uncertainty of the enterprise - and that's why I'm happy to stay the course. I am not getting disillusioned because I always knew it would be a challenge. The launch as a dietary supplement got me pretty happy, as there are around 50 products out there now containing Blis. But it hasn't produced a profit to date anyway.
But, yes, I'm still backing this horse. I remain open to it's not turning the world on fire, just as I always have. But I also have the same basic views: great products, great company. But whatever happens, I enjoy Blis-watching. It's a spunky company that always manages to surprise. And, yes, I remain optimistic of this paying off. But there is still no telling where this is going yet.
I guess if we could bottle my dogged optimism, we could sell that for quite a bit too. From my point of view though, I don't see why everyone else gets upset when problems arise. This is still a start up, so why be surprised when the course isn't straight?
Cheers.
ps. I may yet be wrong about Blis's future obviously, never said otherwise. But the mere fact of my staying the course hardly proves me wrong. Churchill spent some years saying that Britain should be arming against Hitler, in face of much disagreement. Didn't make him wrong either. We've discussed before you're being "Impatient" and my being "Patient"!
As I am only human, that did of course hurt. This is one of the main reason's I defend the company. They too are real people who obviously work hard. Comments like that hurt. I always assume that the company, like me and most other people, mean well, and work hard at things. So when things don't go as well as we would like, I don't lash out, but thank them for keeping going in what must at times surely be discouraging work. It is a huge task they are undertaking.
I may as well make a few points in clear reply to the accusation, since it has been made:
- I have no afffiliation with the company other than being a keen shareholder.
- I definitely have skin in the game.
- I am unable to think of any advantage to me of other members of this group putting money into the company. I assume the company will get sufficient money anyway. The Board alone are putting up about $600,000 according to this release https://nzx.com/companies/BLT/announcements/213516
- On the other hand, I have put in 15k myself. I do not imagine most shareholders will be doing that, so actually most shareholders are benefitting from my money, if anything, rather than the other way around.
- Anyone who reads my comments know that I frequently refer to the uncertainty of investing in a startup. I do that far more than anyone, as far as I can see. I incessantly make it clear that each investor makes their own choices.
- I have actually made very little suggestion on what people would do about this issue. I acknowledged it happening, briefly discussed the obvious pros and cons to contribute to the conversation, and said what my own plans were, as I assume we are all interested in others' thoughts. I welcomed hearing others' ideas. It is excellent knowing how others are viewing things, whether I agree or not.
- I did make a stronger comment when I thought the company was getting criticised for having no plan when it did seem to me that the entire point of GRAS is that it IS a plan.
I make those points partly in my defence. But also to demonstrate just why I stand up for the company and also thank them. It is easy to express disappointment in things, but easy too to forget to express appreciation other times. I'm a real person, and those comments did hurt. Blis isn't just an abstract company, but real people who work hard every day I assume. They deserve to be admired and thanked for all they do. And I am happy to do it, especially as I genuinely do appreciate what they do.
Well expressed Simla!
Simla, keep up the great work mate. I very much value your comments and insights. Many of us are grateful for the reasearch that you (and a few others) do on this stock, and I've always appreciated the time you put in. You often reference the uncertainties involved but are clearly optimistic about the company's future. Thanks for the value you add to this discussion.
Simla I appreciate the analysis but to be honest I tend to skip the thank you sections as they are a bit much for me to take most days. It is nice that you sincerely feel that way, but I see it more as them doing their jobs. Cheers
Thanks, guys.
This was on Campbell Live tonight http://www.wildfireapp.com/ a social marketing site in the States developed by a young NZ lady - could this site be of use to Blis to promote their products?
Yes, a real M18-only product. I've got some from here. http://www.phpure.com/denta-ven-30-vcaps It's just M18 and xylitol, which I like. The other products all seem to have extra ingredients, which I don't want personally. Odd product format though: "Open one capsule and empty contents into mouth, ensuring contact with all tooth and gum surfaces." It cost me about NZ$80 for 2 bottles of 30, incl postage.
$1.5 million raised in the issue. Onwards, then. https://nzx.com/companies/BLT/announcements/214351
So, according to the last annual report and this July press release, we have: some cash in the bank, GRAS in the pocket, multiple countries, dietary supplements, food technology, an ice cream (and yoghurt?) company, other products, pets, a couple of websites, a couple of facebook pages, expansion activities, R&D, regulatory applications (Europe, China, elsewhere), and more. And a difficult world environment, of course.
The company has quite a few irons in the fire now. They're all assets, but they all have running costs too. Increased revenue is always any company's objective.
With so much on the boil, and having seen nothing like GRAS from NZ experience, and in light of the last annual result, I'll be interested to see what sort of news we get next. Half year report in a few weeks.
A tidy issue, though. Personally, I'm happy.
Yes but half a million short of what their announcement says they needed to raise to meet it's ongoing funding requirements. That isn't good news!
The result shows how unwilling most shareholders are to back Blis with any more money
I didn't see an announcement saying they "needed" $2m, Emearg? This report in Stuff is the only one I've seen mentioning $2m at all, and it just said "target". Indeed, they have stated that the cash is for more expansion, plus working capital, I think. https://nzx.com/companies/BLT/announcements/214351
The terms of the issue (2.2) said they were using listing rule 7.3.4 (p87), which allows 30% of voting shares. 30% of 138m is 41.1m, the amount stated in the issue terms (2.8 (b)), which is $2m at 4.85 cents.
I'm sure they can always use more, but $1.5m seems like a useful amount. It's about what I was expecting them to get, for some reason.
As to shareholder support, I don't think that's too bad actually. P47 of the last report states that only 218 shareholders have more than 100,000 shares, which is $5000 at the issue price of 4.85 cents. So 179 putting up an average $3800 cash ($679k / 179) isn't too bad, is it?
As always, that's just my personal reading of things. Anyway, they now have cash in their pockets, which is good in the current state of world upset.
Well spotted, Emearg. I missed that.
Just to remind ourselves that Blis did pretty well running that issue just now:
"World stock markets ended one of the most brutal quarters in years on Friday." http://www.nzherald.co.nz/business/n...ectid=10755815
It's been a pretty hectic year for Blis shareholders, too.
Total world panic as a backdrop, from markets to global warming to overthrown governments. And Blis shareholders starting the year hoping for a profit from supplements. Disappointing annual result. Quite unexpected purchase of an ice cream company. Swift cash issue without asking for shareholder approval. The Sept 16 announcement, that dairy is the future and GRAS is massive compared to supplements, that there remains a challenging period ahead. https://nzx.com/companies/BLT/announcements/213865
Personally, I've found it all quite a bit to take in. I wouldn't mind if the company could find time to explain all this to us shareholders just a little more slowly and clearly sometime.
You guys do a good line in silence when you're in the mood! It's true that we live in unsettling times. But no matter what happens next, people will still get up in the morning, still need food, clothing, electricity, medicine. They'll still buy themselves treats, watch movies, TV, surf the net. Society doesn't just stop, it always goes on. And, who knows, they might even buy themselves an ice cream ... :)
Been on holiday. 48 holes over 3 days. Nice :)
Three more pottles turned up on my door step while we were away. Nice :)
Society doesn't stop but for most people buying lozenges may not be their top priority. That is why getting K12 into everyday products is so important. People keep buying yoghurt and milk and maybe even ice cream when times are tough.
The preference shares convert to ordinaries in only about 6 months now, at a rate not yet fixed, and as described on p4 of the last annual report. I wonder how many owners of ordinary shares have remembered to ask themselves the basic question: How will I feel at that time, for the minimum conversion rate, and for the maximum conversion rate, if I own no preference shares; or 100 preference shares; or 1000; or 5000; etc?
However, there's so much going at at Blis now that I suspect many shareholders find it all quite complex. Many are probably just ignoring everything now until the outcome becomes clear.
In 6 months, anyway, hopefully we'll all be able to taste the Blis ice cream for ourselves.
Your opinion or a fact?
Have you asked everyone? I presume not as you didn't ask me.
Different people have different tastes. Check out the range at the supermarket. It isn't just the price that varies, but also the taste. Compare Kiwi or Signature Range and TipTop for an obvious comparision. They all sell...just to different people with different tastes (and budgets). I'm not saying they all sell in the same volumes, but they do all sell.
Fair enough. Didn't know it had made it to supermarkets. I've never seen it sold in Dunedin away from venues where there is no choice, such as the small live theatres. Seems like it's more of a fundraiser thing for them, with a minute (and I mean it) pottle selling for around $2.50. Although a couple of restaurants used to have it on their menues. They may still have. It's rubbish, not just my opinion. I simply can't imagine anyone buying it against one of the major brands. However I am pleased you like it.
No I never said it had made it to supermarkets. I was just making a point and that was that certain people like things that you may not. What you (or I)can or can't imagine isn't really important. I mean, can you imagine anybody buying KFC? I can't but I know plenty do!
Personally I would prefer Blis hadn't bought an icecream business but I can only presume Barry thinks he knows best. He has a lot more shares than me so has a lot more to lose! Perhaps the lower fat versus tastes better? I'm sure they will sell it for a reasonable price at the supermarket as they have real competition there and most people won't pay much of a premium to get some bacteria they don't really understand. Remember that EVERYTHING you buy at the movies is marked up beyond belief so I can't see those prices being translated to a supermarket.
Actually, I have tasted some (non-Blis) and, yes, I found it in a supermarket. It's quite rich by my standards, but the women in the house thought it delicious. I don't know if that's what you've tasted, of course, Fungus Pudding.
Don't forget that the company has apparently bought an entire ice cream company here. It's not just selling K12 ice cream, but mainly ordinary ice cream. One reason they bought it was for cash flow https://nzx.com/companies/BLT/announcements/211826 so this might prove helpfully countercyclical if business conditions do indeed get a bit tough now. I'm guessing they saw a business which could benefit from Blis's management firepower and dairy industry knowledge, and which would be cash flow positive from day one. Plus a showcase for Blis dairy products thrown in. The idea has been growing on me since the initial surprise.
Well Emearg, I for one am willing to give the Blis K12 ice cream a go when it becomes available in Auckland and will post my taste bud experience on here. I am expecting the taste to be not that different to other low fat ice creams which though not as nice as the full fat versions, are less likely to stick to the waist line and artery walls!! A big plus for me will be the added advantage of it containing Blis K12. I rarely buy KFC or pizzas either and try to stick to foods with the big red tick. I had quite a few Charlies shares but never bought the stuff as I thought it was overpriced and not that great tasting - but the power of clever marketing made it a hit with the younger set. If only Blis could use the same strategy!
But that is precisely what is wrong with the whole idea! Blis is supposed to be a Biotech not a Dairy product manufacturer/innovator, and whatever management "firepower" (!!) Blis has, should be in the Biotech area - if it really is, then we are in big trouble buying an ice-cream company - if it isn't then why not? and no wonder we've been running at a loss and burning so much cash. The link with Barry's prior experience simply has me thinking he feels out of his depth on the Biotech side and has thrown in the towel there having seen an opportunity in an area he understands better. If the board has agreed to this then the independent voices are in a very weak position. Barry must have convinced Edinburgh to support him - hence the 500,000 - so Edinburgh and Barry are now calling the shots - with our company. How much of Barry's time will now be distracted trying to grow this new play-thing: an ice-cream business? And what impact will that have on the real value proposition in the Biotech area? The idea that the cash-flow from an ice-cream business will support Blis' operations in any meaningful way is simply laughable - if it was such a great investment in it's own right, then it could not have been obtained at a realistic price. I don't buy the argument that the synergies with K12 based dairy-products will add that much value - you don't need to buy your own dairy company to extract those synergies if they are real.
By the way - I am not saying this ice-cream venture won't pay off somehow - Barry may be some kind of Dairy product genius who can pull the proverbial out of his hat - but I reckon it's much more likely to end in tears of some kind.
I see where you're coming from, Bobby, and it's certainly a very old adage: stick to the knitting.
But you could look at it from the other direction, too. Blis said in their last release "we ... definitely see ourselves operating within the global dairy industry in the future" https://www.nzx.com/companies/BLT/announcements/213865
Why? Well, if GRAS is the far bigger market ("the massive food industry in the United States") then where do probiotics fit naturally? Obviously yoghurt is the big one to date, but ice cream has been a target of many too. Here's one in India recently. http://itsmymarketing.blogspot.com/2...probiotic.html And Gourmet make both ice cream and yoghurt anyway.
Either way, it's dairy as the likely main outlet via GRAS, the most established market that consumers associate with probiotics. Well, Blis do surely need somewhere to try formulations out, or otherwise they are relying on their overseas food business partners to come up with formulations, which is probably not a really good strategy.
So acquisition of a small company to try out the products which at the same time provides cash flow? It surely beats doing it at a loss. And there is an existing staff, so we hope not too much of Blis's time will be needed running it. I doubt this was a sudden decision, and I'm perfectly sure the Board will have all looked hard at such a major decision, too.
As to firepower, yes! Blis has achieved amazing results over just a couple of years. I think we forget that the rights issue was just 2 short years ago. What a massive difference since then.
Sales revenue has lagged, and we're all keen to see that change. But the Board have all fronted up hard cash in the recent issue, and I think we can be confident that that has reminded everyone quite firmly of the advantages of positive cash flow!
Anyway, it's a done deal. So we'll just have to wait and see how it pans out.
Actually, Bobby, the most likely explanation is surely the obvious one: that the ice cream acquisition is a really good idea that fits in well with future plans.
Hi Simla, thankyou for your posts we think alike. I think Blis is doing a great job. have you found any news lately? I would like to find out more about the dog product. Another probiotic company which has done well is biogaia. Check out their growth. Hopefuly Blis can replicate. Looks like they have a similar model
Thanks for the Biogaia idea. Here's their own website on their financials for 5 years. http://www.biogaia.com/investors/financial-statistics
Essentially their revenues seem to have grown about 30% compound from 2006 to 2010, as I calculate that. (Their profit figures in that time have grown somewhat fast than that though, which I assume is what encourages you!) Well, Blis's US revenue has gone 325k, 760k, 976k for the last three years, which is about 75% compound. NZ sales have gone 146k, 192k, 217k, which is about 20% compound. And other markets have been flat.
The main things that those Biogaia figures might demonstrate for us perhaps is that there is definitely a probiotic market out there, and that compounding at 30% can get you a long way, and that profits flow once you get through the challenging startup stage?
Overall, I remain cautious however. There's no doubt that the world is in a bit of a panic at present, which affects sales. I'm hoping the world crash is rather like a property market crash: the provinces crash first while the big cities keep going, then the big cities crash, but meanwhile the provinces have started the slow recovery already. As we wait for the big cities to crash (America, Europe, China), the rest of the world (and individuals) have all crashed long ago and are busy trying to mend their cash flows and balance sheets already. It'll still be a long process though.
But yeah, the company really continues to pump out the work. It was all quite a punt when the rights issue came out in 2009, but the situation is very significantly advanced since then. Nevertheless, we'd all be pretty happy to see the crop safely harvested and in the barn, with so many storm clouds in the sky!
Much seems to lie in front of us yet, with the outcome still unknown. Probably about 4 weeks to the half-year report, I imagine.
Interesting, Throatguard available in Singapore ?
http://singapore-promotions.com/wp-c...gen-Avalon.jpg.
NaturesFarm has 26 stores a bit expensive though.
It all helps
Here's the General Manager of Food Standards ANZ saying proposal 293 is still on track to be approved in NZ "early 2012" (ie not long now?). The aim is to allow advertising of health claims with food. It would still require Blis to satisfy it's requirements (time? cost?), and want to spend money on advertising, but presumably it would let them make actual claims on the food labelling regardless of an advertising budget, which would be a major step forward for all of us frustrated that Blis cannot claim the product does what it does! I suppose we'll find out some time next year whether Blis are in a position to benefit from this - and if it does actually pass into law. Ironically, as I read it, they could then make claims on food that they could not make on the supplements. http://www.ausfoodnews.com.au/2011/1...n-the-way.html
Proposal 293 is a complex read, though, so I cannot promise it will benefit Blis. That's just my reading. I'm not even providing a link to it as I'm not sure which is the final draft! But it's here somewhere: http://www.foodstandards.gov.au/food...aims/index.cfm
By the way, here's an interesting on-line sales site forming in Germany. It says "not currently open". http://www.blis-k12-shop.de/
ps. Belatedly I realise that this would apply in Australia too, and what's to stop them exporting ice cream there? Just a thought.
Europe forces a haircut on Greek bonds. Angela Merkel becomes the first politician to refuse to bow to "too big to fail". Wow!
Will Europe become the first real fight back against the power of mega corporations then? Was that the first real turning point in the last few years of debt being used to defeat democracy?
I have a suspicion that that was a bit of a game changer, that future prospects just got quite a bit brighter for both individuals and non-mega corporations - Blis included. Early days. We'll see.
Here's an interestingly upbeat view of the future. http://howestreet.com/2011/11/the-uncrisis/
"What the fear brigade fails to understand is widespread financial meltdown is impossible so long as the elite fends it off. This is what the G20, the EU, the G8, the IMF, WB, ECB and the FSB ... are all about. These guys make the rules. They can nationalize banks, bail out countries, force taxes and austerity measures, recapitalize institutions, raise or lower interest rates, expand or contract the money supply, regulate or deregulate and in the course of it all, modify human behaviour. That means they can prevent a run on the banks, influence the bond market or make mortgages irresistibly cheap.
"This coordination was taken to a new level following the crisis of 2008-9, and unless we break out in global conflict, it will never be dismantled. Collectively, there is so much power – to create liquidity, to tax, to curb excess, to put out fires – that those who go short on stability and long on disorder will be wiped out.
"Of course, this does not mean an end to occasional chaos, market plunges or panic. But you can forget an impoverished US, a Hovered stock market or people buying food with nuggets. Ain’t happening. The worst financial crisis of an entire generation is in the rear view mirror and the very fact it took place is insurance it won’t again."
Many here can probably remember NZ bottoming in 1992. It took a while to pick up again, but we all knew then that it wasn't going to get any worse. Maybe the world hasn't quite reached that point yet, but it looks like Europe might just squeeze through here after all. America probably isn't going to do anything too dramatic now, given how much has already happened. We still don't know what's going on in China, but it would be a dramatic turnaround for it to collapse in any really big way.
So maybe this guy is right. Maybe the big volatility is starting to pass?
Why am I posting this on the Blis group? Because big drops in consumer and business confidence have surely been the biggest barrier lately. If Europe can come through this in one piece (more or less!) then we might see confidence creeping back in across the world. That'd be good.
All speculation, of course. We'll see.
A couple of weeks to the next report presumably. And a week for the next pref div. Shareholders who backed the issues are still getting a payback, even if the profit is not there yet.
Therabreath keep opening new doors. "We are particularly thrilled that Dr. Oz and the oral care experts of The Doctors have chosen to partner with TheraBreath and help spread the word about our quality products. " http://blog.therabreath.com/2011/10/...rice-is-right/
M18 now available in aussie at http://www.breezecare.com.au/ausshop...hwash-m18.html Can use discount code k12. Geoffrey Speiser seems to be investing heavily in new branding and new products.
Anlit Yomi Blis
http://www.anlit4kids.com/web/8888/n...1035A84E6C5761
That looks promising, Emearg. Mums might respond to the simple message "Oral Health", as parents spend some time worrying about their young kids' mouths, teeth and throats.
Looking back on the last year or so, it's obvious we pinned quite a bit of hope of strong sales growth onto one product selling into two large chains. So far that doesn't seem to have changed the game too much though.
Now Therabreath is in Walgreens nationwide, and have created quite a bit of noise on the internet to their credit. The Jarrow gum is also in a large chain, but I see little noise on the net about that so far.
Behind those few products in nationwide chains, we have a ton of other products and we hope their sales continue to grow, but we shareholders have little clear feedback on that to go on.
In addition to that, we have Asia, about which I remain unclear. The products are there, but the sales revenue hasn't been spectacular by any means.
As far as big jumps in sales revenue is concerned, we obviously hope that GRAS opens doors too, but do not yet know what to expect there or when.
The growth in sales revenue is the one thing we are obviously all keen on now, given that the company seems to have made a lot of business progress otherwise. Given that it has been a blistering summer in the US, and that we are not aware of any major developments coming to fruition just now, I guess we're not hoping for too much on that front in the current report though. Major news would be welcome, but steadily chipping away seems the more likely situation just at present, and products like Anlit will obviously help.
Hi guys, I have been away for 2 weeks so that's why no posts. Before I left I was in chemist at St Lukes buying Travelguard and saw a large promotion for a product called Oragenics Oral Care Probiotic - various strengths available for kids and adults. Looks like they might have stolen the march on the launch of an M18 lozenge in NZ. Very impressive brochure claiming the product was expected to be distributed through the UN, UNESCO, UNICEF and WHO to help support oral care throughout the world. Costs a 1$ a day, but no reference to any Blis probiotic so could be a significant competitor.
If it's Oragenics, it's possibly one of these. http://www.oragenics.com/?q=probiotics They've been in the market for a little while now overseas. The theory is that more than one product actually makes a market bigger (so long as they don't wipe the floor of the other products!) You might see the growth in mobile phones this way, with the product gaining really full market acceptance once you got nokia and blackberry and apple and google all involved. However, the arrival of competition in NZ is sure a reminder that you shouldn't take your home market for granted. Clever of them to think of going through the UN for a market.
Great News about China!, Hope they have some good distributors. Its good they are being proactive in regards to Frutatom. Ice Cream company looks like a cheap purchase. I am suprised the shareprice hasnt moved.
Well, that report was what I would call Good Honest Chocolate! https://nzx.com/files/attachments/149700.pdf
Most importantly for me, the company fronted up squarely to say it was unhappy with sales levels and acted very decisively, most significantly by replacing the global distributor. They've also cut back on costs. Considering we've been waiting for a clear sign that the company would decisively tackle the sales situation, we couldn't ask for much more than that. We can't know how that will play out, but I'm very pleased to see decisive action.
Pretty importantly for many will be the profit - or lack of it! American sales to manufacturers stopped dead, seemingly mainly because of changing distributor (see next paragraph, not entirely clear) and research revenue was gone this period too. A loss for 6 months of $1m (page 12), leaving working capital of $1.7m (p14). A solid loss then. "The global environment is difficult and has necessitated a review of our distribution arrangements at significant short term cost to the company in terms of market development and sales opportunities foregone." (p11).
"Strategic priorities, and in particular the realignment of international distribution arrangements to better match the opportunities in the food ingredients sector presented by the achievement of GRAS status for BLIS K12, resulted in supply chain destocking. The associated lull in branded ingredient sales was further exacerbated by market conditions generally; the change in sales strategy of one of our largest North American end-customers meant that in-market promotion of its product was suspended pending completion of licensing arrangements. As a consequence, our United States sales fell from $682k to $8k. Sales resumed into the United States in October but meaningful volumes are not anticipated until our new distributor is appointed in December." (p3).
However, there is good news therein beyond doubt.
China is open for business! Population thought to be 1.3 billion, or 4 times the US. However, we all know the difficulties that NZ companies have had profiting from China, so we will watch this with considerable interest. "The approval represents the end of a regulatory process that commenced in 2008 and will enable NZPR Group to actively market BLIS K12 lozenges and associated BLIS K12 products through their Chinese distribution networks. The Company anticipates that it will soon be assisting NZPR Group with the implementation of its business plan in China." (p6) It's hard to see that this as anything but major news.
"New Zealand trading revenue increased by 76% from $124k to $218k." (p3). "Other trading revenue increased by 14% from $80k to $91k with sales into Australia, Japan, Taiwan, South East Asia, and the launch of our commercial website." (p3)
Action on costs: "Operating costs were contained, reducing in aggregate by $137k or 10% from $1,308k to $1,171k despite a $170k reduction in capitalised development and patent costs and a $23k increase in the amortisation charge for these items. The reduction in costs reflects lower expenditure in relation to regulatory applications and staffing generally, and reduced costs of goods sold."
Gloabl economy: "Regulatory barriers aside, the concerns about the status of the global economic recovery continues to exert an impact on the company resulting in a deferral of revenues in the USA and Asia in particular." (p4) Blis and half the rest of the world too. It's a tough world at present.
Global distributor: "after review, the Company has decided to end its global distribution agreement with Frutarom Ltd ...will take effect from 30 November 2011." That's a big decision. "has signed a letter of intent to appoint Stratum Nutrition from 1 December, 2011." (p5) "Now called Novus International, this business has been operating for over 20 years, in 90 countries with an annual turnover of US$1 billion and has a focus on animal health and human nutrition". “A major strength of Stratum Nutrition and reason for supporting the decision to appoint them as distributors is that they have both a dietary supplements and food ingredients market presence. ... The sales and marketing team for Stratum Nutrition in the USA has considerable experience in working with food companies." (p6)
"Therabreath ... are being sold through Walgreens pharmacies, which have over 7500 outlets throughout the United States. ... It is also anticipated that Therabreath will introduce this product to additional major retail outlets, providing the potential for a significant increase in ingredient sales." (p7)
"Integra Medical has already successfully achieved regulatory approval for its first BLIS K12 based product as a dietary supplement within the Russian market and has now embarked upon several clinical trials to support its application for BLIS K12 based products as an approved medicine in Russia." (p8)
"In Asia, the Company has made slower progress than anticipated. A major company is planning to launch a new product based on BLIS K12 in late 2012 ...projects in Asia based on part-finished products with one project having commenced commercial sales and two projects subject to confirmation of first purchase orders." (p8)
In NZ "By the end of 2010, the BLIS Throat Guard range further exceeded expectations and as at June 2011 has now displaced two other well-known retail pharmacy brands and moved into third place behind the global retail pharmacy brands of Difflam and Strepsils (based on new market research from Synovate)." (p8)
"BLIS is to submit an application for K12 to the EU health authorities." (p9) Good luck to them. Europe just rejected the claim that water prevents dehydration because there wasn't any proof! It will be great if they get it though, and meanwhile "There are opportunities in the wider European market that are not constrained by the regulatory issues of the EU and these too, will be addressed at the earliest opportunity." (p8)
Gourmet Ice Cream cost $225k. It needed more capital, and help "to rebuild the business" (p10) , and now "The GIC plant is now fully operational" (p9) "probiotic yoghurt and ice-cream with BLIS K12 added. The latter is in the early stages of commercialisation." (p10)
"In the past year, two long-serving staff (Chris Chilcott and Jeremy Burton) have left the Company to work in North America" (p10). Very many thanks for all you have done, guys, and good luck with your new futures.
So, the chewy bit: how's it going?
"The receipt of the 2010 Global Probiotics Entrepreneurial Company of the Year award from Frost and Sullivan was an independent validation of the Company and its strategy. That endorsement has yet to be reflected in commercial success." (p11)
"The global environment is difficult and has necessitated a review of our distribution arrangements at significant short term cost to the company in terms of market development and sales opportunities foregone. With GRAS self-affirmed status, regulatory approval in China, the launch of BLIS Functional Foods and our online shopping website, and the pending completion of distribution and associated science and technology support arrangements with Stratum Nutrition, the Company is well-positioned for growth." (p11)
"The Company considers that its global business strategy is sound and as noted below has acted to change its international distribution arrangements in support of the execution of this plan. BLIS Technologies remains dedicated to growing the brand and driving innovation through clearly defined and targeted strategies." (p4)
"Despite the absence of meaningful branded ingredient sales of BLIS K12 and M18 over the previous six months, the Company believes it has the correct business strategy." (p4) Well, that's the main question each investor will be asking themselves. However, a pretty exciting report on many fronts.
The financials probably haven't warmed anyone's heart! But the report was very solid and proactive, with quite a bit of promise to it, I thought. It will be most interesting watching developments from here. Add in GRAS from a few months ago, and there's still a lot happening. Definite food for much thought. I wonder what the market will think.