Global food waste is staggering. In fact, the sad truth is that more than 1.3 billion tons of food are wasted every year. And in the United States alone, estimates suggest that roughly 229 million tons of food, worth about $408 billion, never make it to the table. That's approximately 35% of the combined global loss. It gets worse.
The United Nations reports that food losses and waste reach upwards of $680 billion in industrialized countries and $310 billion in developing countries. Save Foods, Inc. (NASDAQ: SVFD) is ready to help.
In fact, they are already positioned to put a considerable dent in that waste number, leveraging the results of nine pilot projects that helped to build commercial partnerships across the globe. They already have five in place, which could help capture a sizable share of the $2.3 billion post-harvest treatment market. Even better, recent expansion into Turkey could accelerate European growth.
Safe Products Through Green Innovation
Leading the charge is an expert management team and best-in-class, safe "green" products. And the combination is doing well to protect fresh fruit and vegetables from microbial spoilage and food-borne pathogens responsible for decay and food-borne illnesses.
Better still, with its products reducing or eliminating the harmful residues often found on produce, it does more than help the environment. Food stays fresher, longer and more people can eat.And with seven patents protecting its food-saving technology, SVFD is more than in the right markets at the right time to make a difference; competitors can be kept at bay.
Moreover, with its food-saving products not leaving any residues of toxicological concern on the treated produce surface, and with its ingredients recognized by the USDA and FDA as Generally Recognized As Safe (GRAS), SVFD has cleared the barriers of entry that keep many of its competitors idle.Better still, it positions SVFD to face off against the two most critical challenges of the modern world- food waste & food safety. At the same time, they can help feed the more than one billion people per year that go hungry.
And that need to feed isn't going away.
Surging Population Adds To Already Vibrant Market
That's especially true as the world's population grows to an expected 10 billion people in the next three decades. And considering that food safety isn't talked about much in the political arena, companies that can make a difference with cost-effective measures can secure a big piece of the food safety and preservation markets.
Better yet, Save Food Inc. products not only keep food safe and fresher longer, but its formulation is also all "green." That's an important distinction. In fact, its blend of food acids and oxidizers is more than safe; it's proven to reduce the bacterial and fungal attacks on food, leading to higher quality and optimum utilization of the food it protects. Hence, more food remains available to global markets.
Know this, too. SVFD isn't earning patents by being ordinary. Its products are proven to increase product shelf life by significantly minimizing bacteria and fungus on treated foods and still leaving a residue level well below competing and potentially toxic treatments. Also notable, its products don't harm the environment and almost entirely mitigates fungal and bacterial decay. Plus, SVFD products are odorless and don't cause irritation to the skin. Thus, by keeping food safe, people safe, and saving billions of pounds of food in the process, SVFD delivers a win-win-win proposition.
And that proposition also exposes a compelling investment opportunity to tap into SVFD's success.
Patent Protection Helps Competitive Position
That success comes through seven awarded patents. And those patents help target and protect opportunities where worldwide demand for fresh produce is stronger than ever. But, demand is only part of the equation. SVFD facilitates getting food into the hands of consumers with a delicate balance of maximizing yield and shelf life while minimizing the use of harmful chemicals. That's SVFD's mission.
And while they endeavor to earn a large portion of the market opportunity, their vision is still aligned with others- protect food, feed people, assist exporters, and maximize opportunities for retailers. Hence, it's a multi-dimensional business strategy. And reaching each market is part of SVFD's plan to expand.
That's happening now, with Save Foods showing that its produce treatment products increase yield, extend shelf life, and help get substantially more products to consumers, wholesalers, and retailers. And by using safe, FDA GRAS ingredients, its mission to establish itself as the preferred solution for produce suppliers is in its crosshairs.
Already, the Safe Food blend is proving to reduce rot up to 50% compared to untreated fruit sold at the retail level. Of course, the deduction there is more food for people and higher profits for sellers. And that's what's leading to new partnerships at SVFD. In fact, as its clients get squeezed with tight margins and ongoing pandemic-related logistical issues, utilizing SVFD innovation can make a significant difference to their bottom line.
Indeed, their challenges are SVFD's opportunities. Even better, the opportunities in play are being maximized by using its world-changing technology to transform this relatively small company into a global food-saving juggernaut. And more than product, they have leadership.
Strong Leadership And Substantial Clients
With Mr. Dror Eigerman joining its Advisory Board, SVFD is tapping into revenue-generating opportunities from Galilee Export, Israel's second-largest exporter of fruits and vegetables. That company coordinates the resources of more than 70 farms under four different organizations, with Eigerman overseeing the growing and shipping of over 75,000 tons of produce to buyers worldwide.
The dollars in play are massive, too. Galilee records more than $180 million in revenues annually. Thus, more than an opportunity to drive near-term exponential growth for SVFD, it puts them on a global stage to attract even more client engagements. Consider this- if SVFD is trusted in an operation the size of Galilee, they can gain market traction quickly. If so, expect its share price to follow.
And it has a history of doing so. Late last year, SVFD ran from about $5 in November to about $30 by February 2021, a roughly 500% increase. Today, with the stock pulling back with broad market weakness, its price of $8.66 is exposing substantial growth potential.
And with only about 2.8 million shares outstanding, the new interest could send prices soaring. Moreover, with insiders owning about 22% of the stock and institutions owning about 14%, a large portion of shares are already in tight hands.Plus, compared to its competition, SVFD, on a comparative peer basis, is genuinely undervalued from a multiples perspective. However, markets do correct, and with SVFD attracting new attention by expanding its European presence, that can happen quickly.
Source: Save Foods presentation
Remember, too, SVFD is exceptionally well-positioned to earn business far beyond produce-giant Galilee. Its "green" treatment products are commercially validated on citrus fruits, mango, avocado, pears, bell pepper, microgreens, and various fresh-cut vegetables. Better still, SVFD is in the validation process for bananas, apples, figs, berries, lettuce, papaya, and more. Hence, they are inside billion-dollar global food preservation markets.
And with its eco-friendly post-harvest treatments for fruits and vegetables reducing the need for conventional post-harvest fungicide by at least 50%, SVFD is ideally positioned to earn substantial new contracts. And deservedly so.
Thus, SVFD represents a perfect storm of opportunity. Why?
Using Its Advantages To Benefit World's Food Supply
Because Safe Foods is helping the food chain, promotes safe and clean foods, reduces client costs, and presents a compelling investment opportunity. Hence, SVFD is of interest to a broad range of people. And with global expansion, strong leadership, patent protections, and a lead into a massive $180 million client, the remainder of 2021 could be a breakout period for the company.
Remember, while produce items may be seasonal, their rotation will always keep SVFD food-saving products in high demand. Even better, as organic products continue to earn significant market share, SVFD's "green" alternative may be more than best-in-class; it can become one of the market's safest and most preferred post-harvest treatment options.
Thus, although SVFD shares are already starting to move higher, there appears to be considerably more room to run, using history as a guide. In fact, simply returning to its 52-week high of $30.10 represents a more than 247% increase from current levels. That makes SVFD attractive from an environmental and investment perspective. And these days, that's a powerful combination.
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