Hi folks Some of the most exciting comments in the most recent...

Hi folks

Some of the most exciting comments in the most recent HY report for me was within the following paragraph:

"As a result of enhance product formulation capabilities, Antaria is increasingly able to offer its distribution partners and brand owners end-product formulations which can be adapted to be “shelf ready”. This initiative allows brand owners to potentially reduce product development cycle times. It also repositions Antaria from being merely an “ingredients” supplier to becoming a product development partner working in tandem with its distributors and brand owners. There has been a very position reaction to this initiative from our European and North American distribution partners."

Let’s break this down a little.

Antaria is positioning itself away from its competition who are just selling Zinc out of a catalogue, to providing - in addition to ZinClear’s superiority as an ingredient - specialist formulation support. Why is this important? It allows Antaria to approach brand owners - who do not have any cosmetics expertise - and work with them to develop new product lines.

These could be brands that are in the luxury goods sector, but who do not already have any cosmetics/skincare lines - or perhaps related sectors like adventure/outdoors gear or sporting brands.

It is important to understand, Antaria does not just provide them with a white label product that they provide to everyone else - but instead work with the brand to develop a product that suits their brand image and gives them a unique end product.

Take some time to think about who some of these brands are, and you start to see the untapped potential for both parties. It’s win-win.

Putting the pieces together - Antaria recruited last year Penelope Young, an experienced formulation expert who over the last 7 years was working for Walgreens Boots Alliance (NASDAQ:WBA) the $100 billion behemoth, based in the UK. I think she would bring a lot of expertise of the European and American markets and probably brings a lot of connections to other brand owners which will be beneficially when penetrating the European market place.

PS. For those brands that do just want ZinClear - because they do already have formulation capacity - like major cosmetics brands - you'll be glad to know Antaria has what I regard in business to be the holy trinity - lowest costs, highest margins and most superior products. Add in that Zinc Oxide is the gold standard for SPF/UV protection in both performance and consumer choice as an all naturals option (compared to chemical absorbers) - there is little standing in the way of Antaria's ZinClear continuing to be a very hot and in demand product.

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