Everyone has missed this sleeping giant of an opportunity that...

Everyone has missed this sleeping giant of an opportunity that we should expect to hear about very soon! If we get this one, expect SP to jump higher than the China trial announcement.

Within the February 2012 Investor presentation, the first and biggest opportunity described was Brazil.

http://www.asx.com.au/asxpdf/20120208/pdf/4247d5p2sx0bcl.pdf

This Brazil opportunity was allocated 3 pages, as opposed to the China opportunity (that we now know about) receiving 1 page.

Such an opportunity with such detail is normally not heralded unless there is substance, otherwise management would end up with real egg on their faces, having made such a song and dance in front of potential investors.

"Major market opportunity: Brazil

Sao Paulo initiative banning traditional disposable carrier bags

•Cooperation agreement between Government of Sao Paulo and leading supermarket industry association (APAS) signed on 15 December 2011.
•Current estimated market size 1.4 billion bags/month
•Potential market size after implementation: 600 million bags/month (7.2 billion bags/year)
•Cardia’s compostable and starch based bags are compliant with APAS guidelines.

• Cardia Bioplastics setting up a fully owned subsidiary in Brazil
• Joao Paulo Mignot (Managing Director, Brazil): very experienced in sustainable packaging, high profile, well connected
• 15 commission-based sales representatives engaged in Brazil
• Cardia Bioplastics Brazil will be launch pad into other Latin American countries

Sales and marketing strategy
• Cooperation with leading converters (APAS approved) that supply first tier supermarket chains such as Pão de Açúcar, Carrefour and Walmart. These convertors have purchased resin from Cardia Bioplastics
• Cardia markets and sells to second tier supermarkets
• Rapidly increasing demand for Cardia products, despite early days
• Cardia already seeing benefits from early mover advantage in Brazil

Brazil Sales Opportunity Potential of $62m p.a.
Estimated market size for carrier bags in Brazil: 7.2 billion bags p.a.. Cardia's potential estimated market share 7%