Strategy Objectives

MicroSalt PLC

06 February 2024

 

6 February 2024

MicroSalt Plc

("MicroSalt" or the "Company")

Strategy Objectives

MicroSalt plc (AIM:SALT), a company commercialising a patented technology to produce full-flavour, low-sodium salt for food manufacturers and consumers, is delighted to announce its first strategy objectives as a London-listed company.

Strategy Highlights:

·    MicroSalt is sufficiently capitalised and well-positioned to pursue immediate opportunities in its business to business ("B2B") and business to consumer ("B2C") channels.

·    The Board believe nearer term profitable growth will primarily be driven by its B2B business. In 2024, the Company will continue to prioritise conversion of current B2B customer trials into commercial volume orders, expanding current product line sales across to other product lines and to establish new potential B2B partners to reformulate their product ingredients using MicroSalt technology to reduce sodium content.

·    Having secured commercial orders from Customer B, the Mexican business of one of the world's largest food, soft drink and snack manufacturers, and Customer A, a national Fortune-500 pharmacy / food retailer, for use in their crisp and salted nuts lines, the Board see a clear path to sales growth in its higher volume B2B business. The Company expects to announce new orders and new customers, primarily based in the US, in the coming period.

·    MicroSalt is in early-stage discussions with three of the largest UK supermarkets to use MicroSalt technology in their own-label products, as well as suppliers of ready-meals and a fast food burger company.

·    MicroSalt plans to attend at least 12 food shows globally, including international events in Frankfurt, Paris, Shanghai, Dubai, and Stockholm.

·    In addition to over 1,000 US and Filipino outlets stocking MicroSalt salt shakers, the Company will maintain its global expansion, aiming to make B2C products available in more top-tier retail stores, and in new territories.

·    To manage expected growing order volumes, the Company will continuously monitor and expand as appropriate its global distribution and logistics network of third party manufacturing facilities, storage hubs, and transportation routes. In the longer term, the Board may determine it appropriate to build and manufacture some of its required volumes inhouse.

·    The Company is encouraged by global regulatory agendas supporting reduced sodium consumption and will seek to engage constructively with authorities and policymakers.

·    Through MicroSalt's marketing and sales strategy, the Company will continue to educate consumers on the health benefits of lowering sodium consumption, and communicate to the food manufacturing industry the commercial benefits of reformulating products with MicroSalt's low sodium technology.

Reformulation

MicroSalt is working with existing and potential customers to reformulate products in order to reduce sodium content using MicroSalt's patented technology. The Company is encouraged by results to date, which include successful testing results for Customers A, B and C (as described in the Company's admission document). MicroSalt has a sales pipeline of potential customers engaged in testing and expects to announce additional updates throughout 2024.

MicroSalt has proved its technology can be implemented in the reformulation of ingredients of crisps, bread, ready meals, and coatings for salted nuts. The Company believes many more products have the potential to include MicroSalt technology.

The Company believes a substantial commercial opportunity exists through the changing attitudes of major food companies to reduce sodium, and that it is well positioned to take advantage of the nascent market for a healthier alternative that tastes like traditional salt.

Sodium Reduction Market

In 2021, the global sodium reduction ingredients market was estimated to be US$5.5 billion, with the expectation that it will reach US$9.6 billion by 2032, a compound annual growth rate of 5.8%.

Excess sodium consumption is a leading global health problem and consumers are looking to healthier salt alternatives. 86 per cent of US healthcare costs are related to chronic diseases, and cardiovascular disease plays a prominent role. The World Health Organisation ("WHO") has set a target of reducing global sodium intake by 30% by 2025, which it estimates will save 7 million lives by 2030. WHO research also found that every US$1 spent on sodium reduction translates to US$12 in healthcare cost savings for treating cardiovascular disease¹.

The Havard Medical School reviewed research (JAMA, 11 November 2023) suggesting that reducing salt intake by one teaspoon per day will have the same impact on blood pressure as taking medication².

¹https://www.who.int/news-room/fact-sheets/detail/salt-reduction

²https://www.health.harvard.edu/heart-health/cutting-sodium-significantly-lowers-blood-pressure

Defined terms used in this announcement shall have the same meaning as those defined in the Company's admission document dated 27 January 2024.

For more information, please visit MicroSalt's website, follow on Twitter @MicroSaltPLC or contact:

MicroSalt plc	Via Flagstaff PR
Rick Guiney, CEO
Zeus (Nominated Adviser and Broker)	[phone]
David Foreman / James Edis (Investment Banking)
Dom King (Corporate Broking), Rupert Woolfenden (Sales)
Flagstaff PR (Financial PR/IR)	[phone]
Tim Thompson / Alison Allfrey / Anna Probert	[e-mail]

Redchurch Communications (Media Relations)	[e-mail]
Jonathan Roy / John Casey

Notes to Editors

MicroSalt® produces a patented full-flavour, low-sodium salt for food manufacturers and consumers.

MicroSalt is a major potential disruptor in the food market, thanks to its micron sized particles which deliver the same sense of saltiness to a wide range of foods but with approximately 50% less sodium. Excess sodium consumption is a significant contributor to cardiovascular disease and MicroSalt's solution meets the rising demand for healthier alternatives to traditional salt. The WHO has set a target for reducing global sodium intake by 30% by 2025, which it estimates will save 7 million lives by 2030.

Each year, cardiovascular disease costs the UK £19 billion - if the average salt intake was reduced by one gram per day, it has been estimated that 4,147 lives and £288 million would be saved each year in the UK. As a nation, the UK consumes 183 million kilograms of salt each year, and 70 per cent. of the typical person's sodium intake is hidden in processed foods.

Operational since 2018, MicroSalt uses a patent-protected technology which helps create high barriers to entry within the reduced-sodium salt market. The group has a US patent and 14 patent applications pending in other jurisdictions globally.

The Directors believe that MicroSalt is well positioned to capture growth in the low sodium market, which is expected to grow exponentially, and that there is also scope to enter the larger salt market.

MicroSalt has a three-pronged marketing strategy, targeting large B2B food manufacturers, the B2C market and e-commerce customers. Microsalt's all natural, low-sodium solution is well positioned to take advantage of the fast-growing market for a healthier alternative to traditional salt.

ENDS

 

END