Safetek International Inc. (Pink Sheets: SFIN), a manufacturer and distributor of green technology and eco-friendly products, announced today that its Food Film Division has commenced marketing its new environmentally friendly Safetek Professional food service film packaging for meat, poultry, produce and frozen foods to position the company as a leading supplier of “green” packaging products to the food retailing industry.
Commenting on Safetek's entry into the recyclable and non-toxic food film packaging market in North America, Michael J. Krantz, president of Safetek International, said, "We as a company have completed a detailed market analysis of the institutional food film market in North America. Safetek will begin the initial rollout of the food film packaging in January 2013. We have placed an initial order for six 40-foot shipping containers of non-PVC Food Film with delivery dates starting in January. We have scheduled delivery of one container per month through June 2013. Each 40-foot container holds approximately 4,000 rolls of Food Film, with each roll 5,000 feet in length.
The expected wholesale prices range between $30 to $60 USD per roll, depending on the film width and gauge. The film will be shipped to the Boca Raton warehouse and will be a stock item held in inventory for sale. Each container represents potential revenue in excess of $120,000 USD.
Krantz continued, "We will also offer wholesale customers pricing on 20-foot and 40-foot shipping containers that will be dropped shipped directly to the commercial customers. The point of origin of the Food Film is India and Bahrain. Initial orders will have a delivery in 90 days from the commercial customer depositing the purchase order, and 60 days on reorders once in the manufacturing production schedule."
Current PVC food packaging market size
According to market studies conducted by the Freedonia Group, the PVC food packaging market for film in the USA is estimated to be 300-MM lbs. At an average wholesale selling price of $1.50/lb. US, this represents a market of $ 800 million annually. Significantly, this number does not include the Food Service and Retail markets. The market for PVC stretch film is segmented:
Supermarket/Grocery: The largest application is in the packaging individual cuts of red meat, followed by poultry and seafood. Lesser applications are for baked goods, produce and other food products. Certain vendors such as Tyson Brands require printed film as part of their branding, and accept paying a high premium for printed film. Others choose to apply expensive adhesive backed labels. Safetek will meet these specific requirements to penetrate the institutional marketplace. According to Freedonia, annual growth in the grocery segment is forecast to be 2 percent. The non-toxic, non-PVC packaging segment
is growing rapidly as more food retailers adopt eco-friendly practices and standards.
Food Service: This segment includes all food service establishments, catering firms, restaurants, hotels, hospitals and the like. The application is for wrapping of foods such as sandwiches, salads, airline servings of food and wrapping of foods for future use. Again, more and more food service establishments are joining the "green" movement towards recyclable and non-toxic packaging and are incorporating this "earth-friendly" message in their corporate image marketing.
Retail: This is a home use application for protection of foods and for microwave lidding. This product is sold exclusively in cutterbox dispensers in various lengths of up to 200 feet.
About Safetek's Food Film Packaging
Food Wrap Cling Film Polyethylene (PE) - the base material used in the manufacture of Safetek's food film packaging is a simple structure polymer that places the least eco-strain on the environment. PE disintegrates in a given time period and, when annihilated, it burns to hydrogen & carbon with no residual polluting side effects. PE is slowly replacing conventional PVC films, since PVC contains toxic plasticizers (such as phthalates), stabilizers containing dangerous heavy metals (such as lead), fungicides and other toxic substances
Advantages of Safetek's food film over conventional PVC cling film are:
- Conforms to food contact regulations
- Harmless. 100 percent non-toxic and hypo-allergenic
- Recyclable: 100 percent recyclable and Eco-friendly
- More economical than PVC, lower density of LLDPE than PVC
- 30 percent less material used in manufacturing PE than PVC Sign Up for Investor Relations e-Mail Database
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