good natured Products (TSXV:GDNP) is Making Packaging Environmentally Friendly

With the global shift towards sustainable living and environmentally friendly solutions, good natured Products Inc. (TSXV:GDNP) is poised for growth

Vasudha Sharma | November 1, 2017 | SmallCapPower: Canadian bioplastics packaging and product manufacturer good natured Products Inc. (TSXV:GDNP), formerly Solegear Bioplastic Technologies Inc. (TSXV:SGB), is not just reinventing plastic packaging and products but also undergoing a brand reinvention. good natured Products Inc. is trading under its new name and symbol as of October 31, 2017. The name change is a strategic move to position itself as a consumer-oriented brand with a goal of becoming North America’s leading plant-based consumer products and packaging company.

Becoming Good Natured to Attract Consumers

Over the past two years, the Company has diversified from biopolymer resin engineering to making better everyday consumer products and packaging from bioplastics. And with the acquisition of bioplastic divisions from companies in the U.S. like LINDAR Corp. and Ex-Tech Plastics, good naturedTM  now has the footprint to scale up its operations with the 70+ North American customers that it’s now able to serve.

good natured Products CEO Paul Antoniadis adds, “good naturedTM has a leading assortment of products, 100+ in packaging, 30+ in home & business organization. And the goal is to continue to extend that assortment to match consumer buying trends, eating trends and retail operational trends in order for us to create more value for our shareholders. We’re not here to just to win on price. It’s our wide assortment of eco-friendly packaging and product designs that puts good naturedTM in line with today’s consumer trends. good naturedTM products are priced to grow market share, but the wide assortment is the selling point. So that’s a hidden gem that’s both our strength and a barrier to entry.”

It was the success of their good naturedTM line of office organization products that led the Company to rethink their brand identity. good naturedTM desk and office accessories launched in 2016, and are made of 85% plant-based bioplastics. There is a huge market for these among corporates looking to meet their social responsibility targets of lowering their carbon emissions.

Turning Dirty Plastic Green

good natured Products Inc. is committed to turning conventional petroleum-derived plastic into renewable bioplastic. good naturedTM sources and/or develops proprietary plant-based materials and then, through a fully integrated outsourced supply chain, converts those materials into finished productsand packaging. This replaces fossil fuel-based ingredients in traditional plastic packaging and products with the highest possible percentage of annually renewable plant-based materials.

“The difference is our packaging is made from a renewable resource and doesn’t contain hazardous chemicals,” says Antoniadis. “It’s a real passion of the good naturedTM  team to deliver better everyday products that are free of chemicals of concern, which include BPA, phthalates, styrenes, other additives that negatively impact human and environmental health,” he explained. Antoniadis continued, “Our packaging integrates with the multiple end-of-life options for packaging. You can compost it in a commercial facility, you can incinerate it and it can be recycled.”

Bioplastics, a Trillion Dollar Market

good natured Products management believes there is room for competition in the plant-based space given that it is targeting a trillion-dollar market worldwide. But the Company is building a model specifically designed to compete against petroleum-based products. And the packaging and consumer products space is their playing field now.

“The way we compete is we’re retailers, we’re biopolymer scientists, we’re supply chain experts, we’re packaging, manufacturing experts, we’re extrusion experts. We get this stuff. But the real power and the value is that the whole group is trying to find that emotional connection and understanding of how are you behaving, what is your eating behavior and other consumer trends,” asserts Antoniadis.

Even as it adopts a new consumer-friendly identity, good naturedTM’s growth will ultimately be driven by the Company’s consistent success in maintaining a capital-light business model, its unique product designs, its scalability and its breadth of bioplastic packaging and product assortment.

“Our goal, our North Star, is to be North America’s leading plant-based consumer product and packaging company,” declares Antoniadis. “And one way of doing that is through innovation of materials. Some we will create, some we will source, more likely it’d be a combination of the two. We’re agnostic. We’re open-sourced. If someone comes out with a new ingredient and it’s revolutionizing, we want to say we have a thousand products ready to plug that innovation into and two thousand customers ready to buy it. You know, retail customers or food producers or food growers, it could be a combination of all of them.”

With the global shift towards sustainable living and growing consumer demand for environmentally friendly solutions, good natured Products Inc. is poised for growth for the long term.

To find out more about good natured Products Inc. (TSXV:GDNP), please “visit the company’s Investor Hub.”

Ubika Research/SmallCapPower has received compensation from good natured Products Inc. (TSXV:GDNP) to provide analyst research coverage. For full disclosure please visit here >>.

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