NEWS RELEASE - Fresh Market/ShrinkGUARD INSTALLATION
Raytec Capital Corp. is pleased to report that it has begun installation of its ShrinkGUARD program in selected grocers around the country. The program, first tested at Fred Meyer in Oregon, is designed to reduce the amount of product the grocer must throw away because of spoilage. The product is placed under and around the produce in the grocery store display case and cold rooms to reduce gases in the air that cause premature ripening and foul smelling odors.
Testing of approximately 115 different product items at Fred Meyer demonstrated that an average of 40% reduction on overall product loss (shrink) was achieved while using ShrinkGUARD. The shrink test study was performed by Food Products Laboratory, Inc., of Portland, Oregon.
In a market where net profit margins have historically been low, a 40% reduction in shrink significantly increases a retailer's profit.
This set of installations is part of the final phase for rolling out ShrinkGUARD, which will help build a larger database of the impact and payback the program has for the customer. Previous tests have been very successful and this phase will allow the customer to see firsthand how the program works.
The Company's first installation, during this final phase, was at Fresh Market in North Carolina. Fresh Market has been given a three-month supply of the product to experience the benefits of the program. Upon successful completion of the three-month trial the Company anticipates selling the product monthly to Fresh Market resulting in annual sales of approximately $221,875, while the customer will experience shrink savings of approximately $722,592 based on previous testing. This equates to a return on investment of approximately 270%.
Also, several distributors have been looking at implementing the program into their current offerings, which include in-store sanitation. The Company is currently negotiating with these distributors.
A few orders have already been processed. Raytec should begin delivering large volumes of product orders by the spring of this year.
Raytec Capital Corp. develops, markets and services the highest quality perishable control products and antimicrobial products based on its patented technology. Raytec's technologies help the food industry improve profit margins by reducing product loss, enhancing product quality and controlling safe food processing.
RAYTEC CAPITAL CORP.
Jerry A. Minni
President & Director |
