Else Nutrition Holdings Inc T.BABY

Signs a Pioneering Powder Manufacturing Agreement T.BABY

[Betteryear2]

Agreement expected to reduce Else’s manufacturing costs by 50% and ensure uninterrupted supply to meet growing demand

Manufacturing facility utilizes a breakthrough low-heat process to better preserve nutrient content and improve solubility and texture

VANCOUVER, British Columbia, March 11, 2024 (GLOBE NEWSWIRE) -- ELSE NUTRITION HOLDINGS INC. (BABY) (BABYF) (0YL.F) ("Else" or the "Company"), today announced signing a landmark agreement with a premier US-based powder manufacturer, which is expected to reduce the Company’s manufacturing costs by 50%, as well as secure essential powder production capacity to meet the Company’s growing demand for its toddler and kids nutritional powder products through at least the end of 2025. In addition, this production facility utilizes a breakthrough, low-heat manufacturing process designed to better preserve the powder’s nutrient content and to improve the solubility and texture of the Company’s powder products.

Else Nutrition Signs a Pioneering Powder Manufacturing (globenewswire.com)

[doggy123]

Fantastic news now Danone could stay on back seat

[ForesstGump]

lets break 40s. 

[doggy123]

News after news after positive news and just a tiny half cent up...........incredible 

[majortom75]

cost savings are great but the market wants both top line growth with improvements in margin and bottom line. Market is not yet convinced that Else will be able to improve both at the same time. There will not be a significant boost in SP until after earnings...provided they beat estimates on revenue/sales

[mjh9413]

Yes, where does this fit with Danone "Binding agreement" where ELSE said "....Danone's specialized nutrition portfolio and manufactured, marketed and commercialized by Danone." It has been worse than watching paint dry made so by ELSE regurly adding a new layer of 'paint' in its 'growing pains.' Still, might end up drying and looking real good...soon I hope.

[majortom75]

The anticipated deal with Danone is initially a licensing agreement for Danone to use Else's recipe to make a Danone manufactured, marketed, and commericialized product under one of Danone's brands.  It does not mean that Danone will manufacture Else products that will be sold under the Else brand.  Else will continue to manufacture, market, and commercialize it's own

[ForesstGump]

Initially I thought it would be un the Else name. You think it might be with just royalties attached ? and maybe some small upfront amount ?

[majortom75]

I do expect it to just be royalty based. Obviously I'm not privy to the details but I would anticipate there's a minimum amount per time period with a percentage of sales above minimum. The percentage may also be variable, ie a smaller percentage the more Danone sells.

[ForesstGump]

I wouldn't be surprised if Danone would buy small percentage stake in Danone. It could help Else with some funds too.