RE:RE:I checked out the NSP facility in Pitt Meadows on March 20thCaptainUpUp wrote: Analogue Man . . . I'm not sure if I mentioned it, I think I did, but only briefly, that the warehouse was full of packaged product. And I second Analogue's observations that there are many large bundles/packages packaged and prepped for shipping to Korea, Japan, and Eat Real.
As for branding, what they told me is that many/most of their products will be under the "Natera" brand umbrella, but that they will likely leave Chii as its own entity/product line.
Hey “
AnalogueMan &
CaptainUpUp”,
It was great to read about your warehouse visit experience and hear about the pallets stacked with “packaged” products ready for shipment. To me that means the packaging equipment is up and running (tweaking aside). Last fall I thought it was
a great deal and impatiently have been looking forward to it being put in place since the
LOI was announced on Sept 26th.
I say impatiently because at the time I was hoping it would all happen in a couple months. I didn’t consider everything that would be required to get to this point. Things like negotiating the assumption of the equipment lease, dealing with the landlord, building a purpose specific room inside the warehouse and who knows what else. Bottom line is it is up and running.
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Naturally Splendid CEO Dave Eto states: "
We are excited to work with ERSF and will continue to develop our business relationship through new and creative products. This opportunity will complement our internal packaging needs for hemp seed and protein business for the NATERA and CHII brands and it also provides capacity for co-packaging opportunities with other BC businesses. In my past role as President of the BC Food Processors Association (BCFPA), which has over 300 members, it was made abundantly clear to me that there is currently a serious shortage of co-packing capacity in BC". Mr. Eto adds, "
While co-packing is a key component of our current business model, it is not the major focus for the majority of our business growth. The implementation of the packaging line will assist the growth of revenue for Naturally Splendid. I'm most excited about the opportunities to engage packaging customers with an expanded roster of ingredients including HempOmega®. This will create new opportunities for their products, develop more product applications and showcase to the industry how HempOmega® will add value to their offerings. We are currently in advanced discussions with a number of potential co-packing clients and partners that market their products domestically and for export. This presents an opportunity to expand our own marketing reach dramatically, through our newly acquired packaging division".
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As stated above by Eto this is a great growth opportunity on a couple different fronts for NSP: co-packing & ingredient sales.
IMO this deal
now is even better than I thought last fall.
Over and above the fact that I stated Goodwin & Carson made a great deal on the packaging equipment, the
prophetic words of ERSF President Mr. Ammar Jeet Singh appear to be happening. The deal between ERSF and NSP allows
ERSF to maintain its presence here in Canada for at least 3 years under the terms of the packaging and storage agreement and allows Mr. Singh additional time to focus on international sales.
To that end
ERSF was the registered exhibitor at Japan Foodex 2017 and asked NSP to share its exhibition booth. This was not part of the equipment purchase deal but was a result of the good working relationship that has developed due to the equipment purchase deal. I would think that any success that ERSF has in Japan will lead to additional product volume being added to the packaging line in the Pitt Meadows warehouse at least initially if not long term.
Dave Eto stated “
We are currently in advanced discussions with a number of potential co-packing clients and partners that market their products domestically and for export.” Maybe we should have a contest to see who can come closest to predicting the day that NSP introduces a second shift for the packaging line.
:) *****
Use or flush – your choice!
*****
“Living in the sunshine”
Always DYODD
DKM