Announcement
ADDRESS: BLT: Another US retail giant picks up BLIS products
02:37pm
BLT
30/07/2010
ADDRESS
REL: 1437 HRS BLIS Technologies Limited
ADDRESS: BLT: Another US retail giant picks up BLIS products
Another US retail giant picks up BLIS products
A focused sales and marketing strategy in the US market is showing positive
results for Dunedin based biotech and health products manufacturer, BLIS
Technologies Ltd (NZX:BLT).
It was announced today at the Annual General Meeting by the Chief Executive
Officer, Dr Barry Richardson that BLIS Technologies Ltd had confirmed another
major US retailer will launch a consumer product in September 2010, based on
the company's advanced oral cavity probiotic, BLIS K12. This advanced oral
cavity probiotic has been clinically studied, both in New Zealand and
internationally over the past 10 years, and found to reduce the risk of
certain bacterial infections of the upper airways (in particular; the throat)
as well as reducing bad breath, a condition, commonly associated with certain
undesirable bacteria in the mouth. However, the most significant use for BLIS
K12 in the international market is to enhance the body's immune system and to
protect, during the cold and flu season
The latest US retailer to confirm their interest in the BLIS K12 probiotic is
Rite Aid Pharmacy. This Fortune 500 Company is the third largest drug store
chain in the United States with nearly 4800 stores nationwide. The product
being launched through the Rite Aid Pharmacy chain is similar to the product
being rolled out through the retailer, Costco, which was announced by the
Company earlier this year and represents a continuation of the close
relationship between BLIS Technologies and the retail products manufacturer,
Imagenetix. Sales of ingredient YTD have exceeded those for the same period
last year.
Dr Richardson went on to inform shareholders that while the forecast for
sales in North American and Asian markets remains positive for the coming
year, BLIS Technologies Ltd will likely be constrained from fully developing
new market opportunities outside of these markets , due to the time and cost
associated with meeting regulatory compliance in new markets. Dr Richardson
pointed to the tightening of dietary supplement and functional food
regulations within the European market, which has impacted upon a number of
multinational food manufacturers. While this does not prevent BLIS
Technologies from pursuing European market opportunities, it will likely
increase the time required to fully realise the market potential in the EU.
Despite obvious regulatory constraints on growth into other markets, Dr
Richardson indicated that North America would remain a significant,
profitable and growing market for the Company for several years to come.
The Company announced that it is about to embark on a major clinical study in
the United States to support its application as an ingredient in food.
Currently the Company operates in the comparably smaller dietary supplements
market and is therefore restricted by US law from marketing K12 as an
ingredient in food such as yoghurt etc, without the appropriate GRAS
(Generally Recognised As Safe) designation. The human clinical study will
become the cornerstone of a GRAS application to the US FDA, which in turn
will open the way to new market opportunities in the global food industry.
Additionally, by undertaking this human clinical study, the Company expects
to raise the bar for competitors by setting a high standard of safety for
future oral cavity probiotics.
Dr Richardson told shareholders that the Company was entering a new phase in
commercial development in the United States and Canada. Where previously, the
focus had been on promoting the BLIS K12 ingredient to formulators and brand
manufacturers, now there was a shift in emphasis toward communicating the
benefit of the BLIS probiotic directly to consumers. The Company, in
partnership with its North American distributor Frutarom, is building a new
consumer-focused website to support US consumers. An on-going public
relations campaign is also being developed to support the marketing effort,
towards the retail consumer.
After a successful "soft launch" of its new BLIS M18 probiotic to key
customers in North America, the Company also announced that it would formally
release the BLIS M18 probiotic in September 2010. The new BLIS M18 product is
targeted at the prevention of tooth decay.
In his closing remarks to shareholders Dr Richardson, reaffirmed the company
was well positioned for growth in the future and pointed to the recent 2010
Global Best Practice award from Frost and Sullivan (2010 Global Probiotics
Entrepreneurial Company of the Year) as an independent endorsement that the
company was being well managed and creating a name for itself on a global
stage.
Contact: Dr Barry Richardson, CEO cell phone 021 664 742
End CA:00197849 For:BLT Type:ADDRESS Time:2010-07-30:14:37:56
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