RE:RE:RE:RE:RE:RE:RE:What are we to make of this?lscfa wrote: Looks like a switch from synthetic AVN to organic AVN. Wasn't CZO selling natural AVN to Symrise?
That's my concern. I believe CZO's claim to fame was believed to be the only producer of natural avenanthramide at scale in the world. This was important for companies that want to promote that they are natural products. Gilles also noted superior bioactive performace vs. synthetic product tested. It looks to me like Symrise now has a plant in Germany to produce natural avenanthramide from locally sourced oats. They also tout the highest concentration for an organic product.
On one hand that a giant like Symrise wants in the natural avenanthramde production market is promising for the category and validation. On the other hand with a plant in Europe why source avenanthramide from Canada for European clients? Given Symrise's size are they just interested in a few million in revenue, ultimately, or do they want as much revenue from CZO as possible? CZO doesn't have much avenanthramide revenue as it is compared to a giant like Symrise. Does Symrise want a plant in North America? How much do they need to breakeven? Given CZO has North American infrastructure is there interest in a takeover given natural avenanthramide production now appears of interest to them?
Ultimately CZO, perhaps, could impregnate avenanthramide in a PGX carrier. CZO is also working on other applications such as the pill and wound healing. In the Small Cap Discoveries interview Gilles noted Symrise liked PGX and suggested the possiblity of a second generation Aveeno using CoQ10.
The recent CZO news release about the extension and expansion of the agreement with Symrise didn't hint to difficulties in this passage. It talked about renewed commitment and an important milestone and future success:
“Ceapro and Symrise have a long-standing relationship in product development that has benefitted both companies over the years,” added Timothy Kenny, Global President Cosmetic Ingredients, Symrise AG. “We believe this renewed commitment is an important milestone in our continued collaboration and this agreement further secures a strong foundation for the future. We are equally looking forward to making it successful in creating value.” CZO news release