BioNeutra Global Corp V.BGA

Future not looking good

[MrWarrenBuffett]

As reported in its Sep 30th financial statements “Sales to top three major customers represent 47% of the Company’s total sales”. Watch out for 2019. The company will lose its top customers because of new regulations discussed below and more damage is to come. It lost money last quarter and will lose a lot more this quarter and in the future. A little lower in this forum someone mentioned Lehovss and Europe. Contrary to what was suggested, the company has been selling in Europe for a while. The senior VP and board member that quit last year oversaw European sales for several years. So there is no European “launch” to speak of. The company does not own the trademark in Europe. Do a search on the EU’s intellectual property office website and you will find that it is not owned by the company. This means that it is liable for trademark infringement and revenues collected selling under the trademarked name. This is conveniently not mentioned in its financial statements. There is also a rumour going around that this company is a front for the Chinese government. Take a close look at how many Chinese nationals and expats are investors or work for the company and how no product is manufactured in Canada at all. And board governance is a farce. What kind of company has three employees on the board, including its vice president of sales and marketing? Take note that, while there is no hard evidence, the recent upswing in the stock price was an effort to manipulate it by management and friends. All that said, the company has very poor vision especially when it comes to sales, marketing, communications, regulatory approval, product development, IP management, and leadership is non-existent. This company's success was built off fraudulent science (Google “Priceplow Bioneutra FDA” and watch the YouTube video) and it will now suffer the consequences. The company is currently in panic mode. Stay away. Stay far away.

[canal2017]

Mr. Buffett Thanks for your post.  I was going to invest but reading your comments makes me pause as several of your points are easy to verify and i agree.  But some of your points are contrary to what i believed.  Hope you may have some insight to a few questions. 1.  I thought that they have built a plant in Canada- isn't that where at least some of the sales come from.

[garp14]

Hey there, It does sound like Buffet has a bone to pick with the company, there are a lot of bogus statements in his laundry list - all jumbled up with some facts in order to paint the theory of a conspiracy. They do have a factory set up in Edmonton at this time. Sales Growth has been solid the last few years and there always seems to be something cooking with the compnay. I bought some more

[garp14]

Another reason not to trust Buffett is that his/her account was brand new in Dec 18 an obvious sign of someone with a vendetta.

[MrWarrenBuffett]

There might be a factory in Edmonton but it is all an image. It is not producing anything that is for sale. Again, try to buy made in Canada product and you will be denied. That's because there isn't any Canadian product. All they sell is Chinese product... Sales growth might have looked good but that was only because the company took advanatge of the lack of regulations around digestive

[runwiththebulls]

You were quick to defend the company. How is your investment doing these days? Still feeling the same? 

[merriam]

MrWB, In your first post, you stated that Bioneutra's "success was built off fraudulent science", and as evidence, you directed us to Google “Priceplow Bioneutra FDA".  What you failed to point out is that Priceplow is a retailing hub and that its "articles" on Bioneutra are actually paid advertisements for Bioneutra's competitors.  For example, on the

[runwiththebulls]

In defense of MrWB, regardless if it is sponsored or not, the video is a summary of the FDA's decision. Their product is not a fibre in the Unites States. You can see for yourself.  https://www.fda.gov/food/food-labeling-nutrition/questions-and-answers-dietary-fiber https://www.fda.gov/regulatory-information/search-fda-guidance-documents/guidance-industry-declaration-certain-isolated-or

[runwiththebulls]

Here is the denial repsonse from the FDA to BioNeutra.  https://www.regulations.gov/document?D=FDA-2016-P-4275-0057 Based on our consideration of the scientific evidence and other information submitted with the petition, and other pertinent scientific evidence and information, we conclude that the strength of the evidence does not show that the consumption of IMO has a physiological effect

[merriam]

Runwiththebulls, thanks for the link to the informative FDA letter.  A few comments...  In it, the FDA is not saying that IMO is not healthy or that it does not contain fiber, just that GBA's evidence did not meet FDA standards for various reasons.  For example, FDA did not review some evidence because merely it was not translated.  FDA did not opine one way or the other on

[runwiththebulls]

The fact remains that the FDA does not recognize the product as a fibre - it's NOT on their fibre list - and, starting 2020, the company will not be able to promote and sell it as a fibre in the USA. How do you explain the multi-million dollar lawsuit over mislabeling? What about the drop in sales since the report came out last summer? And if it is a non issue, how come it's not yet

[runwiththebulls]

The deadline is very near...where is the evidence? 

[MrWarrenBuffett]

Don't shoot the messenger. The disclaimer pertains to the banner ads they display on their website which are unrelated to the blog post in question.