Cardia Bioplastics receives increased sales orders of Cardia Bioplastics bags in Brazilian retail market at APAS 2014 Fair; annual supply requirement of retailers forecast to be minimum of US$1M, with supply commencement scheduled for July

MULGRAVE, Victoria , June 2, 2014 (press release) –

  • Cardia Bioplastics Brazil increases sales orders in Brazilian retail market by $1 million annualised.
  • Cardia Bioplastics exhibited at APAS 2014 Fair in São Paulo, Brazil to present its product offering to the Brazilian retail industry.
  • Cardia Bioplastics Brazil poised for growth as Brazilian business established and Cardia’s product performance and quality being recognised within the Brazilian retail market.
Cardia Bioplastics Limited (ASX: CNN) is pleased to announce that it has received increased sales orders in the Brazilian retail market at the all-important APAS 2014 Fair in São Paulo, Brazil. Several Brazilian retailers including Fornecedora Jacome have ordered a total of $250,000 worth of Cardia Bioplastics bags for validating Cardia’s product quality. The annual supply requirement of these retailers is forecast to be a minimum of $1 million with supply commencement scheduled for July 2014. This takes the total of Brazilian sales orders taken during the last 3 months to $2.2M annualised.

Cardia has already won supply contracts to supply bags to Ricoy Supermercados and Drogaria Araujo, as well as other retailers and the APAS 2014 trade fair provided Cardia an opportunity to showcase its environmentally friendly bag offering to Brazil’s retail industry.

Ricoy Supermercados operates 90 stores and employs more than 8000 people in the state of São Paulo. Drogaria Araujo is Brazil’s fourth largest drugstore chain, with 120 stores serving 38 million customers.

The APAS Fair is one of the most important trade events in Latin America, an annual exhibition that brings together suppliers to the Brazilian retail sector with retailers. Hosted in São Paulo from 5 - 8 May, APAS 2014 attracted more than 65,000 visitors. Cardia aims to substantially increase sales in Brazil and was represented at APAS 2014 by Cardia’s Latin America Managing Director João Paulo Mignot, Cardia’s Global Managing Director Frank Glatz and Cardia’s Chairman Richard Tegoni.

Brazil is South America’s largest consumer market and the 7th largest globally. With the impending FIFA World Cup in 2014 and Olympics in 2016 and changing legislation increasing demand for Biohybrid™ bags, Cardia’s entry into the Brazilian market is perfectly timed.

Cardia Bioplastics Latin America Managing Director João Paulo Mignot stated, “We are very pleased to be seeing an increased demand for our Biohybrid™ bags amongst retailers in Brazil.” Mr Mignot continues, “The APAS 2014 Fair provided us with a great opportunity to showcase Cardia Biohybrid™ and Compostable bags as a quality sustainble replacement for retailers that offer a lower carbon footprint, are made with renewable resources, contain no heavy metals and are competitively priced.”

Cardia Bioplastics Managing Director Dr. Frank Glatz added, “These are exciting times for Cardia Bioplastics Brazil. With the establishment of our Brazilian business, we are now seeing major retailers such as Ricoy Supermercados and Drogaria Araujo validating our products through placing orders and commiting to annual supply agreements. As our products reputation continues to build in Brazil, we can expect to see more orders.”

Contracts to supply carry bags to Brazilian Ricoy Supermercados, Drogaria Araujo and other retailers, demonstrates Cardia Bioplastics high product performance and quality being recognised within the Brazilian retail market, the largest and most rapidly growing consumer market in South America.

About APAS - São Paulo Supermarket Association

APAS is the São Paulo Supermarket Association representing 1200 members with 2800 stores in the state of São Paulo. Their annual APAS Fair is the world’s biggest supermarket Tradeshow and conference. APAS 2014 promoted integration between consumer, industry, suppliers and government agencies, with the goal of creating a strategic and competitive value to ensure business success. Each year the expectation for the event just grows, along with the exhibitors, public and product offering. For this historic 30th year of the APAS Fair, 68,000 visitors including supermarket executives and owners and retail professionals from around Brazil and abroad attended the four day event. APAS 2014 took place between 5 - 8 May at Expo Center Norte, in São Paulo, Brazil.

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