DENVER, CO / ACCESSWIRE / June 27, 2017 / With population density and urbanization increasing around the world, the need for cost-effective industrial odor control has become an even greater priority, and the problem has largely gone unsolved by the traditional suppliers. Historically, the available solutions have not satisfied users because most products only mask foul odors with heavy fragrances rather than eliminating the odors. Leading waste handling companies have been struggling with industrial odors for decades, believing there was no cost-effective solution that truly works. The only true solution is a product that will mitigate waste-related odors by actually eliminating the odor-causing compounds, and doing so without breaking the bank. Until now, no such product has been on the market.
Recently, a new product is gaining traction among leading waste handling companies that may change the paradigm: CupriDyne® Clean Industrial Odor Eliminator, made by Odor-No-More, Inc., a subsidiary of BioLargo, Inc (OTCQB: BLGO). The company claims CupriDyne Clean "actually works" by eliminating odors, rather than masking them with fragrances. The product has been proven effective against the nasty odors created at all types of facilities that handle and process our trash - from the trash trucks that haul it, to the "transfer stations" that sort it, and at the landfills, composting centers, and recycling operations where it ends up. From a scientific perspective, CupriDyne Clean oxidizes odors such as hydrogen sulfide, ammonia, mercaptans, fatty acids, sulfur compounds, and VOC's (volatile organic compounds). It can even be delivered fragrance-free since it does not rely on any sort of masking strategy.
In the past few weeks BioLargo's subsidiary Odor-No-More has signed what are known as national purchasing or national supply agreements with three leading US waste handling companies; an interesting development given that they started selling the product a year ago and had since not reported major advances in sales. In an audio interview with SNNLive posted on the BioLargo blog a few weeks ago, BioLargo's president described the signing of these national agreements as breaking a "barrier to entry". According to their SEC filings the agreements do not guarantee any volume of sales, but they do put the company in the system of a large company as an approved vendor, allowing the local facilities to easily order product and get their account serviced, without having to secure payment or deal with new contracts. And, according to Calvert, the agreements allow them to approach a facility, explain the product has been reviewed and approved by corporate and been evaluated for safety, and that other company facilities are using it with success. Doing business with a larger company can have its challenges, and 'corporate approval' in agreements like these, would be a major gateway to sales in any industry. Calvert believes sales will continue to grow and have the potential to increase "significantly", calling 2017 a "breakthrough year".
In addition to the news about these national agreements, BioLargo has also recently reported additional scientific breakthroughs in its clean water treatment technology the AOS (Advanced Oxidation System), and that the company is on the verge of filing for an FDA approval for its advanced wound care products through its subsidiary Clyra Medical Technologies. In any event, the market should respond positively as sales figures climb.
In BioLargo's April 25, 2017 trade release to industry at WasteExpo 2017, it disclosed the first national agreement, with Waste Connections, Inc., a multi-billion dollar company operating in 39 states. It announced a second national agreement in an interview on May 22, and then later identified the customer as Waste Industries USA, another top 10 U.S. company. At BioLargo's annual stockholder meeting on June 19th, they announced a third arrangement with another top 10 company but refused to disclose its identity. In a recent letter to BioLargo stockholders, Calvert reported, "We are now servicing 3 of the top 10 companies in the waste handling industry," and confirmed that sales are growing.
While the waste handling industry is certainly a prolific consumer of industrial odor control products, the need for such products extends into other large industries such as wastewater treatment, livestock and poultry production, food processing, composting and more. In fact, across these industries there are over one million industrial facilities with serious and chronic odor control challenges.
U.S. Industries that generate industrial odors
- Approximate # U.S. Operations
- Solid waste facilities - 15,740
- Waste to energy plants - 300
- Cattle and calf operations - 915,000
- Poultry farms - 233,770
- Meat & poultry slaughtering plants - 6,278
- Hog farms - 12,200
- Publicly operated wastewater plants - 14,780
Total U.S. Industrial Facilities - 1,198,068
Regardless of how large the market need is, the big question is: how much of this large market can be won by a "disruptive" new product, categorically superior to competitors? BioLargo has reported in its market analyses that the facilities they target could use anywhere from $2,000 to $20,000 per month in odor control products, although weather and temperature may have an impact on the need to control odor at any one facility. Hypothetically, if CupriDyne Clean captured 10% of the market in the solid waste facilities business alone, at a gross revenue per month of $2,000 that would equate to approximately $36 million in annual sales. There's no way to know what market share they will eventually capture. Sales should be ramping up as a result of breaking through the barriers and everyone, including management, will be anxious to see the results come in. The three recent national agreements are certainly a good sign for BioLargo's commercial future.
There appear to be a few big competitors in the industrial odor control market like ProSweet by General Electric (GE), and Versene by Dow Chemical (DOW) but apparently none perform like CupriDyne® Clean.
With all the excitement surrounding these recent developments, Calvert was quick to point out in a recent meeting at LD Micro that "Odor-No-More's continued success in this market will require careful attention to product support and customer service." Calvert added, "We love our customers, we offer exceptional service and, our CupriDyne Clean Industrial Odor Eliminator actually works."
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SOURCE: Tamarack Advisors