REG - MicroSalt PLC - Strategy Objectives

MicroSaltAnnouncement

06/02/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240206:nRSF0777Ca&default-theme=true

RNS Number : 0777C  MicroSalt PLC  06 February 2024

6 February 2024

MicroSalt Plc

("MicroSalt" or the "Company")

 

Strategy Objectives

 

MicroSalt plc (AIM:SALT), a company commercialising a patented technology to
produce full-flavour, low-sodium salt for food manufacturers and consumers, is
delighted to announce its first strategy objectives as a London-listed
company.

 

Strategy Highlights:

 

·    MicroSalt is sufficiently capitalised and well-positioned to pursue
immediate opportunities in its business to business ("B2B") and business to
consumer ("B2C") channels.

 

·    The Board believe nearer term profitable growth will primarily be
driven by its B2B business. In 2024, the Company will continue to prioritise
conversion of current B2B customer trials into commercial volume orders,
expanding current product line sales across to other product lines and to
establish new potential B2B partners to reformulate their product ingredients
using MicroSalt technology to reduce sodium content.

 

·    Having secured commercial orders from Customer B, the Mexican
business of one of the world's largest food, soft drink and snack
manufacturers, and Customer A, a national Fortune-500 pharmacy / food
retailer, for use in their crisp and salted nuts lines, the Board see a clear
path to sales growth in its higher volume B2B business. The Company expects to
announce new orders and new customers, primarily based in the US, in the
coming period.

 

·    MicroSalt is in early-stage discussions with three of the largest UK
supermarkets to use MicroSalt technology in their own-label products, as well
as suppliers of ready-meals and a fast food burger company.

 

·    MicroSalt plans to attend at least 12 food shows globally, including
international events in Frankfurt, Paris, Shanghai, Dubai, and Stockholm.

 

·    In addition to over 1,000 US and Filipino outlets stocking MicroSalt
salt shakers, the Company will maintain its global expansion, aiming to make
B2C products available in more top-tier retail stores, and in new territories.

 

·    To manage expected growing order volumes, the Company will
continuously monitor and expand as appropriate its global distribution and
logistics network of third party manufacturing facilities, storage hubs, and
transportation routes. In the longer term, the Board may determine it
appropriate to build and manufacture some of its required volumes inhouse.

 

·    The Company is encouraged by global regulatory agendas supporting
reduced sodium consumption and will seek to engage constructively with
authorities and policymakers.

 

·    Through MicroSalt's marketing and sales strategy, the Company will
continue to educate consumers on the health benefits of lowering sodium
consumption, and communicate to the food manufacturing industry the commercial
benefits of reformulating products with MicroSalt's low sodium technology.

 

Reformulation

 

MicroSalt is working with existing and potential customers to reformulate
products in order to reduce sodium content using MicroSalt's patented
technology. The Company is encouraged by results to date, which include
successful testing results for Customers A, B and C (as described in the
Company's admission document). MicroSalt has a sales pipeline of potential
customers engaged in testing and expects to announce additional updates
throughout 2024.

 

MicroSalt has proved its technology can be implemented in the reformulation of
ingredients of crisps, bread, ready meals, and coatings for salted nuts. The
Company believes many more products have the potential to include MicroSalt
technology.

 

The Company believes a substantial commercial opportunity exists through the
changing attitudes of major food companies to reduce sodium, and that it is
well positioned to take advantage of the nascent market for a healthier
alternative that tastes like traditional salt.

 

Sodium Reduction Market

 

In 2021, the global sodium reduction ingredients market was estimated to be
US$5.5 billion, with the expectation that it will reach US$9.6 billion by
2032, a compound annual growth rate of 5.8%.

 

Excess sodium consumption is a leading global health problem and consumers are
looking to healthier salt alternatives. 86 per cent of US healthcare costs are
related to chronic diseases, and cardiovascular disease plays a prominent
role. The World Health Organisation ("WHO") has set a target of reducing
global sodium intake by 30% by 2025, which it estimates will save 7 million
lives by 2030. WHO research also found that every US$1 spent on sodium
reduction translates to US$12 in healthcare cost savings for treating
cardiovascular disease(1).

 

The Havard Medical School reviewed research (JAMA, 11 November 2023)
suggesting that reducing salt intake by one teaspoon per day will have the
same impact on blood pressure as taking medication(2).

 

(1)https://www.who.int/news-room/fact-sheets/detail/salt-reduction
(https://www.who.int/news-room/fact-sheets/detail/salt-reduction)

 

(2)https://www.health.harvard.edu/heart-health/cutting-sodium-significantly-lowers-blood-pressure
(https://www.health.harvard.edu/heart-health/cutting-sodium-significantly-lowers-blood-pressure)

 

Defined terms used in this announcement shall have the same meaning as those
defined in the Company's admission document dated 27 January 2024.

 

For more information, please visit MicroSalt's website
(https://microsaltinc.com/home-uk/) , follow on Twitter @MicroSaltPLC
(https://twitter.com/MicroSaltPLC) or contact:

 

 

 MicroSalt plc                                            Via Flagstaff PR
 Rick Guiney, CEO

 Zeus (Nominated Adviser and Broker)                      +44 (0)20 3829 5000
 David Foreman / James Edis (Investment Banking)
 Dom King (Corporate Broking), Rupert Woolfenden (Sales)

 Flagstaff PR (Financial PR/IR)                           +44 (0)20 7129 1474
 Tim Thompson / Alison Allfrey / Anna Probert              microsalt@flagstaffcomms.com

 

 Redchurch Communications (Media Relations)    microsalt@weareredchurch.com
 Jonathan Roy / John Casey

 

 

Notes to Editors

 

MicroSalt® produces a patented full-flavour, low-sodium salt for food
manufacturers and consumers.

 

MicroSalt is a major potential disruptor in the food market, thanks to its
micron sized particles which deliver the same sense of saltiness to a wide
range of foods but with approximately 50% less sodium. Excess sodium
consumption is a significant contributor to cardiovascular disease and
MicroSalt's solution meets the rising demand for healthier alternatives to
traditional salt. The WHO has set a target for reducing global sodium intake
by 30% by 2025, which it estimates will save 7 million lives by 2030.

 

Each year, cardiovascular disease costs the UK £19 billion - if the average
salt intake was reduced by one gram per day, it has been estimated that 4,147
lives and £288 million would be saved each year in the UK. As a nation, the
UK consumes 183 million kilograms of salt each year, and 70 per cent. of the
typical person's sodium intake is hidden in processed foods.

 

Operational since 2018, MicroSalt uses a patent-protected technology which
helps create high barriers to entry within the reduced-sodium salt market. The
group has a US patent and 14 patent applications pending in other
jurisdictions globally.

 

The Directors believe that MicroSalt is well positioned to capture growth in
the low sodium market, which is expected to grow exponentially, and that there
is also scope to enter the larger salt market.

 

MicroSalt has a three-pronged marketing strategy, targeting large B2B food
manufacturers, the B2C market and e-commerce customers. Microsalt's all
natural, low-sodium solution is well positioned to take advantage of the
fast-growing market for a healthier alternative to traditional salt.

 

ENDS

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCQKPBPABKDDBK