Wednesday, 22 June 2011

Neptune Makes Major Inroad in Giant U.S. Market

Neptune Technologies & Bioressources
NTB - TSX V) (NEPT - NASDAQ)
Basic Shares: 48.2 million
Fully diluted: 53.9 million


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Neptune Technologies has forged contracts with two large U.S. distributors that management believes will increase demand for its krill oil by nearly one half.

The jaw-dropping estimate will see a "minimum" demand from the new distributors of 50 thousand kilograms per year, compared to Neptune's current annual production of 130 thousand kilograms, the June 22nd news release stated.

The two distributors were not named but together they hold 30% of the U.S. nutraceutical market, supplying 54 thousand retailers which in turn serve over 100 million U.S. customers.
An agent who helped put the substantial deal together, Bill Van Dyke, CEO of B&D Nutritional Ingredients, said he chose to work with Neptune because it was "the best krill oil manufacturer," on the market.

"We now have even more influential partners with clear vision and extensive resources to build strong brand recognition amongst the largest retailers," Neptune CFO Andre Godin said in the release.
Now Neptune Krill Oil (NKO) will be in Costco - among other giant retailers - competing with rivals such as Schiff® MegaRed® Omega-3 Krill Oil.

To meet the new demand, Neptune also announced it launched a plant renovation at its Sherbrooke facility that will eventually double its current plant capacity to hit 260 thousand kilograms per year.

And Neptune CFO, Frédéric Harland, promised the plant addition will not result in any production shutdowns.

To read the full release, please click here.