Trellis Earth Products "Go Green for Free" Campaign Launched in Quick Serve Restaurant Industry
Tectonic Shift of $19 Billion Dollar Disposables Industry Underway With Oregon Company Leading the Transformation
PORTLAND, OR--(Marketwire - April 26, 2012) - Trellis Earth Products, Inc. (
According to a report by Freedonia Group, the U.S. demand for foodservice disposables is expected to approach $19 billion by 2015. While the overall market is expected to grow, a wave of legislation banning styrene-based plastic disposables, in conjunction with rising consumer demand for green products is expected to drive companies to convert to bioplastic disposables. The global market for bioplastics is expected to reach revenues of more than $2.8 billion in 2018, a 17.8% annual growth rate, according to Ceresana Research.
"As we complete our IPO, we will assume control of the former Gage Plastics plant in Lake Oswego, Oregon where we'll have an initial capacity to make over 20 million food containers a month and 21 million pieces of cutlery, as described in our prospectus on file with United States Securities and Exchange Commission," said Bill Collins, the Company's CEO and Chairman. "We're taking away the price penalty of bioplastics with a Made in USA product platform so customers can 'Go Green for Free.'™
"Many disposable plastic containers are made from polystyrene, which contains benzene, a known carcinogen. Plastics are wasteful of oil and petrochemicals. Consumers know this and they want greener choices. They want to vote with their dollars by patronizing vendors that cater to their preference for more sustainable alternatives. With our patent-pending bioplastics, developed with now more than five years of industry use by major customers, it's no longer debated that Trellis Earth® bioplastics can perform as well as conventional plastics," added Mr. Collins.
To manage sales into the quick serve industry the Company recently announced it has hired James Fahlgren as Vice President of Sales. Mr. Fahlgren has been selling disposable containers to the quick serve industry for over 30 years.
"I wish we could make more sooner," said VP of Sales, Mr. Fahlgren. "The industry has recently realized that with Trellis Earth's 'Go Green for Free'™ bioplastics there are no more excuses for fast food companies to not convert to our product for cutlery and thermoformed food containers. Our products perform as well as conventional plastics, and soon they won't have to cost more. That's good news for everyone while it positions our Company to be the dominant industry bioplastics finished goods supplier, particularly with our commitment to Made in USA, and that makes Trellis Earth an exciting place to work."
Since 2007 Trellis has been catering to the quick serve and institutional food disposables industry, making over 100 products under the Trellis Earth® brand which are resold to a roster of 1,000 customers by companies such as Bunzl, Sysco, Food Services of America, and other leading distributors. In 2010 the Company embarked on a plan to make its products locally to cater to the food industry's preference for Made in USA agricultural and bioplastics products, and that is the plan it expects to bring to fruition in 2012.
In the Company's public filings it has outlined a strategy for bringing online two U.S. factories. The initial one will be in Oregon at the former Gage Plastics factory in Lake Oswego, which is expected to be in full production mode later in 2012. Another factory based in the Midwest is slated for 2013 to cater to East Coast markets, such as New York City and Boston where demand for sustainable disposables is strong and increasing rapidly.
The Company has stated in its public filings that its patent-pending technology and formulations can be made into finished goods more profitably than competitive materials.
Trellis Earth has estimated its patent-pending bioplastics blends are about 20 percent less costly to make when compared to polypropylene, based on average crude oil prices in 2011 and 2012. Polypropylene is a mainstay feedstock of the disposable food industry, along with polystyrene which is falling out of favor with consumers because of its negative ecological and health risks.
The Company has built its branding strategy around a concept called "Go Green for Free."™
"That trademark of ours captures the essence of the winning formula in bioplastics," said Mr. Collins, CEO. "After five years in business we are able to finally implement a strategy wherein bioplastics production will be just a dedicated process within a finished goods factory, where the resin production and finished goods production are tightly integrated for optimal cost savings and quality control, under one brand and under one roof. We have built the Company to be vertically integrated in such a manner and we believe that gives us a sustainable competitive advantage particularly when combined with our opportunities for branding and co-branding."
About Trellis Earth Products, Inc.
Trellis Earth Products, Inc. ("Trellis Earth") is a leading supplier of branded bioplastics products to the foodservice industry throughout the United States. The Company's products are made primarily from bio-based renewable materials such as plant starches, allowing for a reduction in the ecological impact of food service disposables. Founded in 2006, Trellis makes both compostable and sustainable/bio-based products such as food containers, cutlery, shopping bags and trash liners.
For more information about Trellis Earth® products, please visit www.TrellisEarth.com
The Trellis Earth logo is available at http://www.trellisearthinc.com/news-media/product-photos-logos
Safe Harbor Statement
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.
Trellis Earth Products, Inc.
971 400-9011 cell
503 582-1300 Ext. 225
Investor Relations Contact
Mr. Andrew Haag
IRTH Communications, LLC
Tel: +1-866-976-IRTH (4784)
E-Mail: Email Contact
Trellis Earth Products, Inc.
9215 SW Ridder Rd, Suite D
Wilsonville, OR 97070