Cardia Bioplastics sign s supply contract with Ricoy Supermercados in Brazil in lead up to FIFA World Cup
Cardia Bioplastics Limited (ASX: CNN) continues to expand its retail carrier bag sales in international markets after having been selected as the preferred bag supplier to Ricoy Supermercados in Brazil.
Ricoy Supermercados is one of Brazilâ€™s large regional supermarket chains operating 90 stores with more than 8500 employees in Brazil's premier state of Sao Paulo. Ricoy Supermercados, through its subsidiary Russi Supermercados ordered US$150,000 of Cardia Bioplastics bags over 4 months and successfully validated Cardia's product quality. An annual supply agreement has been executed with forecast of 5 Million Cardia Bioplastics bags (US$70K) per month based on initial orders.
Brazil is South America's largest consumer market and the seventh largest globally. With the impending 2014 FIFA World Cup BrazilTM, Rio 2016TM Olympic and Paralympic Games as well as changing legislation increasing demand for Cardia BiohybridTM and compostable bags, Cardia's entry into the Brazilian market is well timed.
We are very excited to be supplying Ricoy Supermercados,â€ said Cardia Bioplastics Managing Director Dr Frank Glatz. As one of Sao Paulo State's largest supermarket chains, we have entered the market working with a true leader.
The opportunities for growth in Brazil are immense. Our team in Brazil is perfectly placed to continue to grow the business at such an exciting time, he said. Working in Brazil, we recognise that having a local team who understands the culture and regulations is imperative to Cardia's success.
Cardia Bioplasticos (Brasil) Ltda. under the leadership of Joao Paulo Mignot, Cardia's Managing Director Latin America, has set up resources and infrastructure to supply both resin and finished goods to the large Brazilian plastics and retail market.
The Ricoy Supermercados agreement follows further wins for Cardia Bioplastics having won major contracts in China including supplying Shanghai Pudong Council with its BiohybridTM waste management products.
Submitted by: Cardia Bioplastics