Bee Vectoring Technologies Details Strategy for System Launch in Florida
- Initial focus crop is strawberries in Hillsborough County, Florida
- Face-to-face grower meetings & participation at notable grower trade shows confirmed
- Value delivered by BVT System in strawberries proven to be US $3,400 per acre over a season
- BVT System to be priced per acre per month as a complete turnkey system
- Additional opportunities to be explored on blueberries, cucurbit crops and tomatoes throughout Florida
Mississauga, ON – September 7, 2017 – Bee Vectoring Technologies (the “Company” or “BVT”) (TSXV: BEE) is pleased to provide details on its launch plan for the BVT System for the Florida market. The launch plan was developed together with Guardian Soil Solutions (Guardian), BVT’s new distributor for Florida (news release August 23, 2017).
The launch will center on the larger strawberry growers in Hillsborough County, Florida, the major winter strawberry growing region in the US which produces around 20 million flats of strawberries on 11,000 acres every year. The six biggest growers in the region, some of whom used the BVT System last year, represent about 50% while the Top-10 growers are over 70% of the total acreage. Most of the large growers are also packers and shippers of strawberries, and work directly with major consumer brands, such as Driscoll’s or Wellpict.
The objective of the launch in the first two months will be to confirm sales commitments from growers who did commercial demonstrations during 2017. The company plans to also secure additional commercial demos to further grow the BVT System’s user base beyond its established targets. To secure commitments from strawberry growers, and to promote its system in the region for the upcoming season, BVT confirmed it has set up face to face meetings with several large growers throughout September and October and will be exhibiting at several grower trade shows in the next 60 days.
With the help of Guardian which has considerable experience in the economics of strawberry production, the Company has quantified the value proposition of the BVT System and set standard pricing levels for the discussions with the growers. In a typical year, a Florida strawberry grower earns about US $32,000 per acre over a four-month season. The value delivered by the BVT System has been proven to be at least US $3,400 per acre over the season and includes savings through reductions in the use of chemical fungicides, while still controlling disease pressure, plus greater revenue potential through increase in overall yield of the crop.
In BVT’s business model, strawberry customers will be billed a monthly amount for each acre where the BVT System is being used during the crop cycle. The System, which includes a bumble bee hive with dispenser technology including a replaceable tray through which BVT’s proprietary plant beneficial microbe is delivered to crops using the bumble bees, will be priced as a complete “turnkey” system to simplify adoption by the growers. The System will be setup, maintained, and disposed at the end of the season by Guardian, BVT’s distribution partner.
“The commercialization plan is on track and progressing exactly as is expected by a launch plan within the crop protection industry. September and October are important months for BVT to highlight the commercial benefit its System brings to growers, and to secure commitments for the coming season. The strawberry season starts in December, and growers will make decisions on which tools they will use to grow their crops more effectively during these next 70-80 days,” said Ashish Malik, CEO of BVT. “Face to face meetings with growers are important for agreeing on how the System will be used at their farming operations, and in discussing sales commitments. Our experience shows that when growers use and experience BVT benefits firsthand they are very eager to expand the use through their operations. In addition, trade show events are great ways to broaden the target base including in additional crops where we know BVT can add value.”
BVT and Guardian have identified additional opportunities on blueberries, watermelons, and other cucurbit crops as well as tomatoes and peppers across Florida. For example, several strawberry growers produce watermelons following strawberries (on the same acre), and watermelons which also require pollination with bees.
Blueberries are becoming an important crop in Florida and a second high-value crop with several of the strawberry growers as well, delivering about US $18,000 revenue per acre. Blueberries represent a US $80 million and growing industry for Florida with over 4,000 planted acres. Several blueberry varieties require pollination, and are susceptible to various diseases including monilinia (or mummy berry) and botrytis, both of which are controlled by BVT’s proprietary biological control agent BVT-CR7, making the crop an excellent target opportunity for the BVT System.
Total Production Value of Florida Products that could benefit from BVT system — 2015 (source: USDA National Agricultural Statistics Services):
BVT has developed and owns patent-pending bee vectoring technology that is designed to harmlessly utilize bumblebees and honeybees as natural delivery mechanisms for a variety of powdered mixtures comprised of organic compounds that inhibit or control common crop diseases, while at the same time enhancing crop vigor and productivity. This unique and proprietary process enables a targeted delivery of crop controls using the simple process of bee pollination to replace traditional crop spraying, resulting in better yields, superior quality, and less impact on the environment without the use of water or disruptions to labour.
For further information, please contact:
Ashish Malik, President & CEO
Babak Pedram, Investor Relations
Virtus Advisory Group
For media enquiries or interviews, please contact:
Josh Stanbury | email@example.com | T. 416-628-7441
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Certain statements contained in this press release constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions as they relate to the Company, “annual revenue potential”, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including: planted acres of strawberries in Florida, selling price of competitive chemical pesticides and the US to Canadian dollar exchange rate. Material factors or assumptions were applied in providing forward-looking information. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include changes in law, competition, litigation, the ability to implement business strategies and pursue business opportunities, state of the capital markets, the availability of funds and resources to pursue operations, new technologies, the ability to protect intellectual property rights, the ability to obtain patent protection for products, third-party intellectual property infringement claims, regulatory changes affecting products, failing research and development activities, the ability to reach and sustain profitability, dependence on business and technical experts, the ability to effectively manage business operations and growth, issuance of debt, dilution of existing securities, volatility of publicly traded securities, potential conflicts of interest, unlikelihood of dividend payments, the potential costs stemming from defending third-party intellectual property infringement claims, the ability to secure relationships with manufacturers and purchasers, as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in the Company’s Filing Statement dated May 29, 2015, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and Inspira undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. All figures are in Canadian dollars.