BALTIMORE, MD--(Marketwired - Aug 13, 2013) - Goldman Small Cap Research, a stock market research firm focused on the small cap and microcap sectors, notes that with a flurry of news on the research and development front in recent weeks, it appears as if investors have forgotten about the market opportunity in Europe that lies ahead for Plandai Biotechnology (PLPL) ($0.51 - Spec Buy).
In May of 2013, the Company announced a partnership with a leading Irish distributer, Willow Ingredients, Ltd. Willow will have non-exclusive rights to sell and market Plandai's Phytofare™ extracts into European markets. This is a key alliance for Plandai
Willow is a family-owned firm that specializes and targets the medical, nutraceutical and animal sectors in exclusive agreements. Willow has a history of great relationships with suppliers offering fast and reliable time-to-market responses to customers. The company distributes hundreds of raw materials in these categories: Amino Acids, Herbal Extracts, Joint Maintenance, Oils and Powders, and Probiotics. Willow meets and exceeds all regulatory and voluntary quality standards in the industries it serves. Clearly, the experience and established supply chain will enable Plandai to gain traction in the European market.
The European market for nutraceutical and botanical extract products can be broken into two segments: Western Europe and Eastern Europe. This is the case for most consumer discretionary products as well, as Western Europe is a more established, slower growth economy, and Eastern Europe represents new and accelerating growth opportunities but with some greater volatility.
In a 2012 study, the market research firm Transparency Market Research, (TMR) estimated an annual growth rate of 6% for the worldwide nutraceutical market from 2012 to 2017 with a market size of nearly $205 billion by 2017. According to the study, Eastern and Western Europe combined will represent the third largest market behind the U.S. and Asia. Performing some quick interpolation from the data from the two market research firms, an estimate for the overall European market around $55 billion in 2017 can be inferred.
Plandai's strategic partner, Willow, Ltd. will help the Company tap into the growing European nutraceutical market. Willow's experience and established supply chain base should facilitate Plandai's entry into the market with its Phytofare™ extract products in 1H14 and Plandai's superior product bioavailability of the Company's products is a huge selling point and will be a game changer. Coupled with a quick response supply chain, Plandai is poised for growth in Europe and future top-line revenue growth.