BLT - Blis Technologies

[Cannibal]

I signed up to Costco too - an onerous process! I got the same email. Very slick it is too.
Considering that Costco have literally thousands of products it is interesting that they choose to showcase Blis consistently.

This has me more excited though - it is from simla's link above -

A prototype chewing gum functioned as an immune system booster for adults as well as children. The product—developed through a collaboration between Frutarom and Tab Laboratories—featured BLIS K12, a new oral probiotic bacteria. A one-piece serving delivers 20 mg of the probiotic—an amount shown to help boost immune system protection.

[simla]

Even the SupplySide's own brief "wrap-up of highlights" mentioned the Blis chewing gum. I wonder if it the K12 or the probiotic chewing gum they like, or just the combination.

http://edaily.supplysideshow.com/blo...t-2.html/m/art

[emearg]

Even the SupplySide's own brief "wrap-up of highlights" mentioned the Blis chewing gum. I wonder if it the K12 or the probiotic chewing gum they like, or just the combination.

http://edaily.supplysideshow.com/blo...t-2.html/m/art

It is good to see it getting so much coverage considering how many other products there are out there!

There will be plenty of potential partners now aware of it, so I think we can expect to see a product some time quite soon.

I still wonder about the GRAS issues? Perhaps it won't be sold as a general product in every dairy, but as a nutritional product in much the same way as the tablets are?

Or maybe it might even be picked up by a company that distributes to NZ and Aussi where it could be sold as a mainstream product.

So many possibilities which is better than no possibilities but only time will tell what will actually happen!

[simla]

You sort of get the feeling it's going to be a long, slow summer on the NZ sharemarket. I suspect that Blis could strike oil and nobody would react before next February! Still, I could easily be wrong about that, and possibly an opportunity for those who stay awake. It needn't stop us noticing developments anyway - we know it's not summer in the US or Asia.

[simla]

The December edition of the Costco Connection magazine is out, and has a half page ad for Bioguard on page 56 of 97 ... along with a half page ad for Celadrin, also by Imagenetix. Page 56 isn't bad though, as the entire magazine is clearly the Christmas catalogue, so pretty good to have put aside room for Bioguard.

[brucea]

I have been a long time supporter of Blis Technologies because I believe in the product it sells and I think it has huge potential for world-wide sales. The scientific background to Blis K12 makes sense to me although I have heard some people also with a with medical background sneer about Blis which I put down to jealousy or the tall poppy syndrome. I look forward to the toothpaste with additive (I think it is called m8) being made available in NZ. I wonder if the K12 Or m8) could be embedded in dental floss strips?

[Glendoonie]

... The scientific background to Blis K12 makes sense to me although I have heard some people also with a with medical background sneer about Blis which I put down to jealousy or the tall poppy syndrome.

Yep. medics can sneer all they like. Very few of them are scientists. The scientific background to Blis K12 made sense to me too. I was a patent examiner after being a scientist. I keep telling people the science behind Blis' formulae is good and the products are novel. Problem is, the marketing of this wonderful stuff has been crap, so there has been little exposure and few sales. This is heartbreaking for investors in BLT.

G

[simla]

I don't think there's too much more we could ask of the marketing now, which is definitely gathering momentum all the time. And, indeed, the last annoucement even said, "We are extremely encouraged by the significant investments that third parties are making in development and marketing of products based on our proprietary ingredients."

Incidentally, I am not that inclined to critise the past myself. It was a very big ask, and an ask that was answered well enough that the company is here today and prospering, which cannot be said of some other startups. It really is an enormous job to take an idea and turn it into a commercial success. The early years will always be difficult. For example, I was reading of one startup abroad recently where the company name and products were sold to avoid bankruptcy, but the board and most of the employees and most of the shareholders were jettisoned. Blis's early years have been way more successful than that. Yes, a perfect strategy might have produced a quicker result, but the necessary purpose was nevertheless served, and I am grateful to them for keeping the dream alive.

[Glendoonie]

I don't think there's too much more we could ask of the marketing now, which is definitely gathering momentum...

I would be asking for more exposure on the TV and radio to begin with. Given all the stupid products that are given more then their fair share of air time, why can't Blis products be marketed seriously; not piecemeal as they have been?

[simla]

Your comments raise the interesting question of working capital. Expansion costs money, or more specifically, cash. Blis stated some time ago that spending money on advertising in NZ was expected to return less than spending money on selling ingredients in the US.

The 2007 annual report stated quite plainly, "Product sales in New Zealand were slightly lower than the previous year reflecting the change in focus associated with a reduced emphasis on the New Zealand market and the associated reduction in expenditure on advertising. The strategy for the local market is under review. BLIS K12 TravelGuard, a product targeted at air travellers, was launched in 2006. While customer feedback has been excellent and sales are growing, the commercial success of a consumer product requires major investment which is not the current focus of the Company." Then, "The priority for the Company is to achieve profitability through the development of key international partnerships."

I imagine most of us now think the deliberate decision to concentrate on "key international partnerships" is paying off in spades.

But even that strategy needs cash. If the K12 chewing gum starts appearing on the market in the next 6 to 12 months, Blis may have a pretty happy product mix on it's hands. K12, as a throat guard, is hopefully selling pretty well in the US over their winter now, but may drop away over their summer. Taking up that slack, however, we might expect progress in Asia, and possibly the initial growth of K12 chewing gum (quite a different market I would have said) as well as progress in expanding M18. Then the following northern winter, the K12 should be picking up at the same time as chewing gum and M18 are showing growth, while we also expect Nestle may hit the market then, plus growth in other countries as well. Potentially, that could be pretty happy news for sales. But it will all have to be supported by cash flow, because the cost of manufacture comes before the sales revenue, possibly by a few months, or even more, and faster sales growth requires more working capital.

The 2009 annual report described the $3m rights issue, "The directors consider this additional capital will be sufficient to fund operations for at least three years. The company has business plans and budgets which indicate that positive operating cash flows will be generated during this timeframe." I imagine the Board faced two very different futures in deciding that: one was for a future of expenses continuing to exceed sales; and the other for rapid growth in sales, but eating up working capital. Quite a difficult judgement call.

Yes, advertising is the name of the game in the end. But cash has to be used like a game of chess, and the advertising is presumably starting to gain momentum now. In any event, we know that Blis was advertised on the radio in NZ this year near the end of winter (p41 of this thread), so progress is being made there. And we know that Bioguard is on TV at least in some of the US http://bioguardinfo.blogspot.com/200...ommercial.html and in the Costco promotional material. We just do not know what promotion is happening otherwise, but it seems likely these various manufacturers are not just dropping their products on the market and then doing nothing about them.