Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Consumer Demand for 'Green' Packaging Driving This Company's Rapid Growth

Share on Stocktwits


A Vancouver-based company is making its mark on the rapidly expanding bioplastics sector.

As more and more consumers are becoming aware of the potentially negative health impacts of chemicals in plastics, they are demanding cleaner packaging and a move away from petroleum-based plastics. Bioplastics have become the fastest growing segment in the plastics industry.

The global bioplastics market is predicted to grow at a compound annual growth rate of 29% by 2020, according to market research firm Technavio.

One company leading the charge is Good Natured Products Inc. (GDNP:TSX.V), which changed its name from Solegear Bioplastic Technologies Inc. and began trading Oct. 31 on the TSX Venture Exchange under the new ticker GDNP.

The Vancouver-based company has developed a wide array of products, including more than 130 plant-based products and packaging items consisting of over 100 food packaging products and over 30 home and business organization products.

Good Natured noted that macro trends should "continue to drive demand for alternatives to petroleum-based plastics—regulatory pressure, consumer demand for products that are free from hazardous chemicals, corporate sustainability objectives to reduce reliance on fossil fuels, and increased attention on overall food safety and packaging materials."

The company stated that it expects "revenues for the fiscal year ending Feb. 28, 2018, to grow by 50% year over year to approximately $3.1 million."

Good Natured also noted that it has a "strong pipeline of new products under development that include: items targeting the replacement of polystyrene, home organizational totes and crates (which represent 35 per cent of a $16-billion (U.S.) market), and fresh prepared and ready-made meal packaging, which has experienced growth of 30 per cent since 2012."

The company sells to 70 customers across 20 states and provinces. Its customers include national, regional and small business retailers, food producers and packaging distributors.

The rapid growth in the bioplastic industry has, according to the company, created "a highly fragmented emerging industry of new entrants, longer-standing bioplastic companies and divisions of larger organizations. This presents significant consolidation opportunities that the company aims to pursue, creating an opportunity for further growth through strategic acquisitions that bring a new customer base, advanced intellectual property and/or an expanded product assortment, all of which enhance the company's dual-strategy approach."

Good Natured announced the acquisition of Lindar Corp.'s bioplastic division last December. "The company anticipates the completion of an outsourced supply chain, fulfilment and warehousing agreement with Lindar by the end of the calendar year."

The company has caught the attention of newsletter writer Alex Koyfman, who noted on Sept. 1 article in Penny Stock Millionaire newsletter that Good Natured, then known as Solegear, "is a next-generation bioplastic engineering firm dedicated to fundamentally changing the way plastics are made. The company custom engineers, produces, and distributes bioplastic products and packaging with some of the highest percentages of renewable, plant-based materials currently available in the industry."

"With 22x growth registered between 2016 and 2017," Koyfman stated, "Solegear has clearly crossed a major milestone and moved on towards developing its client list, not just its product line. . .with the list of major corporations now buying its product, the big picture is quite impressive."

The company is led by an experienced management team. CEO Paul Antoniadis is a founding partner at Scenario Ventures and is the former CEO of Best Buy Europe. Board chairman Salil Munjal is the managing partner at Yaletown Venture Partners.

Good Natured has about 91.5 million shares outstanding, of which 43% are owned by management and insiders. The company's market cap is approximately CA$8.1 million.

Want to read more Streetwise Reports articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Good Natured Products Inc., a company mentioned in this article.

Want to read more about Special Situations investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe