Ann: Response to Broker Enquiry, page-9

One thing that was really reinforced at Tuesday’s meeting was that the board is acutely aware that there is an incredible opportunity in the market with the worldwide trend away from chemical based sunscreens over to all natural products.

The development of Budget XPX Powder would suggest that ANO will have a product offering for the cheaper end of the sunscreen market while maintaining margins with its existing high end ZinClear products for companies like Estee Lauder, MooGoo, Sunsense and Badger to name a few.

If all goes right and they continue to improve their manufacturing processes, our new powder product will be able to compete on price with the chemical guys. The decision for brands to switch over in the long term will become a no brainer as health concerns continue to come to the surface with the use of chemicals as active ingredients.

In the last two years of their inquisition, they have cut out middlemen, layers of management, expensive European precursor suppliers, and product wastage to name a few. They have already inflicted pain and upset good people, it’s their competitors turn to face their fury next! Both chemical and all natural suppliers are in their sights! I wonder if they know what is going to hit them. It’s going to be like getting run over by a Harley rider while crossing the road at a pedestrian crossing while sipping on a latte on the way to the local TAB with a winning ticket!