SECOS shares surge as Woolworths adopts its compostable bags
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Shares in Secos more than tripled in early trade and as at 11am have settled at 96 per cent higher on the news that its products would be on the shelves of the supermarket giant.
Secos’ 8L Kitchen Caddy Bags and 36L Bin Liners, under the MyEcoBag brand, will be rolled out starting this month.
The company says volumes would be subject to in store sales but it expects solid sales.
Chairman Richard Tegoni told Stockhead this was a pivotal moment for his company saying the deal shows his company was “in the right space at the right time”.
It had been supplying councils for some years but this deal is Secos’ first with a major retailer.
Secos’ products aim to replace plastic packaging and divert food waste to organic treatment solutions. In addition to being more environmentally friendly, it also reduces costs such as council landfill fees.
Tegoni added the Woolworths deal was just the tip of the iceberg considering the opportunities it could undertake in the future.
“We’re seeing a lot of demand all over the world for compostables to replace traditional plastic,” he told Stockhead.
“And it’s not just in bags. We’re seeing a number of other applications that are finding it perfectly logical to switch over from traditional plastics to compostables.”
Applications he named as candidates for a break up with plastic in the future include dog bags and diapers as well as the broader medical, hygiene and courier industries.
“The number of different applications we’re working on makes this announcement look quite small to be honest in terms of the opportunities we’re facing,” he said.