Zoono Group reports expanding global trials of its shelf-life extension technology, engaging over 40 supermarket and packaging companies, while refining its product and managing cash flow amid cautious commercial adoption.
- 29 ongoing shelf-life extension trials across 12 countries
- Interest from over 40 supermarket and packaging companies
- Two major UK supermarkets planning in-store berry trials in March 2025
- Product improvements have increased application speed and reduced packaging impact
- Cash reserves decreased but company expects sufficient funding through FY25
Expanding Global Trials Signal Growing Confidence
Zoono Group Limited (ASX: ZNO) has revealed significant progress in its shelf-life extension technology, with the number of active trials rising to 29 across 12 countries spanning the UK, Europe, Asia, Africa, and Australia. This marks a notable increase from 21 trials at the end of the previous quarter, reflecting heightened interest from a diverse range of customers including supermarket chains, food producers, packaging companies, and exporters.
The scope of these trials has broadened beyond soft fruits to encompass a wider array of perishables such as other fruits and vegetables, meat, fish, poultry, bread, ready-meals, and even fresh flowers. Encouragingly, all tests conducted to date have yielded successful outcomes, reinforcing the technology’s potential to reduce food waste on a global scale.
Commercial Adoption Progresses Amid Cautious Approach
Despite the promising trial results, commercial uptake has been slower than initially anticipated, largely due to the conservative stance of major UK supermarket chains. Two leading UK supermarkets have now confirmed plans to initiate in-store berry trials at selected depots starting March 2025. If these trials prove successful, a full national rollout is expected in late 2025 or early 2026.
Zoono acknowledges the delays but remains optimistic, citing a compelling return on investment for supermarkets, estimated at more than five times the cost. The company’s partner, OSY Group Ltd, has advanced its commercialisation strategy beyond earlier projections, with the number of companies moving into product trials exceeding initial forecasts.
Product Refinements Enhance Commercial Viability
During this period, Zoono has leveraged the additional time to refine its product formulation and application process. These improvements have notably increased the speed at which the antimicrobial coating can be applied to packaging materials, significantly reducing any negative impact on packaging companies’ productivity. This enhancement is critical for scaling adoption among large packaging suppliers servicing UK and European supermarkets.
Financial Position and Outlook
On the financial front, Zoono reported a decrease in cash reserves to NZ$787,000 at the end of December 2024, down from NZ$1.56 million the previous quarter. Operating activities used NZ$698,000 in cash during the quarter, reflecting ongoing investment in staff, manufacturing, and corporate overheads. However, the company expects improved sales revenues in the second half of FY25, driven by anticipated product sales and ongoing trials.
Zoono has also implemented a significant restructuring to reduce monthly overheads and maintains access to additional funding lines if required. The Board expresses confidence in the company’s ability to meet its operational objectives and continue its growth trajectory, supported by a robust pipeline of commercial opportunities and stock inventories valued at NZ$6.3 million.
Expanding Presence in Asian Markets
Beyond shelf-life extension, Zoono is making headway in Asian markets including China, Korea, India, and Japan. The company anticipates further orders from a major Japanese pharmaceutical client in the latter half of FY25, targeting applications within the textile industry. This diversification underscores Zoono’s broader ambition to leverage its antimicrobial technology across multiple sectors.
Overall, Zoono’s quarterly update paints a picture of a company navigating the complexities of commercialising innovative biotech solutions, balancing cautious market adoption with steady product and operational advancements.
Bottom Line?
Zoono’s expanding trials and product refinements set the stage for potential market breakthroughs, but cautious commercial adoption and cash flow management remain key watchpoints.
Questions in the middle?
- Will the upcoming UK supermarket berry trials translate into a full national rollout as planned?
- How quickly can Zoono convert trial interest into sustained commercial revenue streams?
- What impact will ongoing product improvements have on scaling adoption among packaging companies?