Learn All About EnWave’s Promising Sales Breakthrough in Japan
While much of the recent attention for EnWave Corporation (CA:ENW – $2.28 CAD & US:NWVCF – $1.70 USD & GER:E4U – €1.50) has been focused on several high-value deals in the cannabis sector, the Company has remained active working to achieve new sales leverage across numerous other sectors. This week EnWave reported another milestone in its relationship with the Japanese diversified snack food specialist, Calbee Incorporated.
Recall that early in 2018, EnWave signed a Technology Evaluation and License Agreement (TELOA) with Calbee, providing the latter the opportunity to evaluate and develop new snack foods produced using EnWave’s Radiant Energy Vacuum (REV) technology. At that time, Calbee opted to rent a smaller 10kW REV machine during the test process.
After a thorough evaluation process, Calbee has now moved forward with a formal Equipment Purchase Agreement and secured a Commercial License arrangement with EnWave. The machine involved in this deal is a 10kW REV unit that is ideal for further testing and product development.
Development Program Underway to Produce New Snack Food Products
Calbee, which has a market cap of $3.5 Billion, has established a number of popular food products including snack confectionary items, bakery foods and cereal foods. These items are manufactured and distributed throughout Asia, Australia, Europe, and soon also North America.
Calbee now plans to advance several new REV dried products through the commercial acceptance phase in 2020 for the Japanese market.
If this product development continues successfully, Calbee plans to further advance its partnership with EnWave with the purchase of a larger REV machine to support commercial distribution. This in turn would suggest the potential for a lucrative royalty stream based on high volume sales and even perhaps a longer term growth plan in other countries where Calbee operates.
thanks to this latest advancement in the relationship with Calbee, EnWave realizes several important benefits for its successful business strategy. First and foremost, every REV machine sale is significant, as the commitment to purchase a machine demonstrates the value of the REV technology.
Large companies with popular product lines and significant worldwide sales are often very hard to convince to adapt a new technology. When these respected and established companies then investigate the technology and follow through with purchase orders, it represents a statement of confidence in the effectiveness of REV technology.
EnWave has been able to achieve numerous sales breakthroughs in several important market sectors with many such partnerships, including large international companies with multi-billion dollar sales clout, as is the case with this most recent agreement with Calbee. This may also prompt other competing companies in these sectors to investigate using REV technology, building further growth potential for EnWave.
The Japanese business culture is highly structured with a conservative bias that can create additional challenging layers to overcome in the initial sales process and this makes the arrangement with Calbee even more notable. Consider that senior management of Calbee visited EnWave’s facilities twice as part of their internal evaluation process, prior to signing the TELOA last year. With the subsequent machine purchase now in hand and a strengthened relationship with Calbee, perhaps this implied validation of the technology may contribute to open doors with other leading Japanese companies to consider working with EnWave.
EnWave also continues to work with Correns Corporation, based in Japan, for the purpose of assisting the Company to make inroads with new sales opportunities. According to EnWave’s management, there are several such projects currently in the pipeline.
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