Packaging
Landec Initiates South America Distribution Agreement for Its BreatheWay Packaging Technology
Monday 23. June 2008 - Landec Corporation (Nasdaq:LNDC), a developer and marketer of patented polymer products for food, agriculture and licensed partner applications, announced today that it has entered into a distribution agreement with Breakthrough Solutions LLC, a Florida based company, whereby Breakthrough Solutions will have the exclusive rights to distribute BreatheWay(R) packaging technology in South America and Panama for packaging applications for fruits and vegetables, excluding applications for bananas and plantains, avocados, mangos and papayas. In exchange for the exclusive distribution rights, Breakthrough Solutions will purchase minimum quantities of BreatheWay packaging.
Breakthrough Solutions, which applies technology-based solutions to challenges faced by Latin American growers, exporters and importers of perishable produce, recognizes the value and opportunity for BreatheWay packaging technology to enable growers and exporters to competitively reach more markets within South America and abroad, as the demand for year-round fresh produce continues to increase.
Ron Midyett, Chief Executive Officer of Apio, Inc., Landec’s food subsidiary, said, “This distribution agreement with Breakthrough Solutions is another validation of the benefit to producers and consumers of fresh perishable produce using Landec’s BreatheWay technology, which extends the shelf life of produce. The new agreement with Breakthrough Solutions represents the first commercial application for export distribution using BreatheWay packaging technology outside of Apio’s own export business. In addition the agreement introduces the use of our proprietary BreatheWay packaging technology to markets and geographies where we have not had a presence in the past and which represent important regions for future growth.”
Under this 5 year renewable agreement, the minimum purchase quantities of BreatheWay packages start in the second contract year and continue through the fifth year with increases through the fourth year. For its part, Apio will manufacture and supply BreatheWay packaging membranes plus provide basic technical support. Apio may also provide, and be compensated for, research and development support for new applications or new packaging, the results of which will remain the exclusive property of Apio.
Landec’s patented BreatheWay food packaging technology regulates the levels of oxygen and carbon dioxide within a package to maintain the optimum atmosphere in order to extend the shelf life of produce. The versatility of the BreatheWay food packaging technology extends the shelf life of fresh-cut vegetables up to 17-20 days and extends the shelf life of fruit, such as bananas and avocados, by up to 7-10 days.
Breakthrough Solutions LLC, founded in 2004, has recently expanded its offerings to include technology-based solutions for the most demanding problems of perishable produce growers, exporters, shippers, importers and retailers primarily from Latin America. Based on a unique problem solving methodology and access to a network of specialists and cutting-edge food technology companies, Breakthrough Solutions enables their customers to become more competitive in world markets and thereby stimulate opportunities for re-investment and growth. For more information contact info@breakthroughsolutionsllc.com or visit their web site at www.breakthroughsolutionsllc.com.
Landec Corporation designs, develops, manufactures and sells temperature-activated and other specialty polymer products for a variety of food, agricultural and licensed partner applications. Landec’s temperature-activated polymer products are based on its proprietary Intelimer(R) polymers which differ from other polymers in that they can be customized to abruptly change their physical characteristics when heated or cooled through a pre-set temperature switch. For more information, visit Landec’s website at www.landec.com.
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially. These risk factors are listed in Landec’s Form 10-K for the fiscal year ended May 27, 2007 (See item 1A: Risk Factors). As a result of these and other factors, Landec expects to continue to experience fluctuations in quarterly operating results and there can be no assurance that it will remain consistently profitable. Landec undertakes no obligation to update or revise any forward-looking statements whether as a result of new developments or otherwise.