SECOS scoops $3 million per annum deal to supply compostable poop bags

SECOS ASX SES Jewett-Cameron Trading pet waste bags Cardia biopolymer resins
SECOS Group will use its proprietary bio-resins and films to make compostable pet waste bags for the US pet supply company.

Sustainable bioplastics developer SECOS Group (ASX: SES) has announced a significant contract with a leading US pet supply company to supply certified compostable pet waste bags.

Inked with JC USA, a wholly-owned subsidiary of Jewett-Cameron Trading Company (NASDAQ: JCTCF), the contract and initial orders are expected to support annual sales of around $3 million.

The waste bags will be made from SECOS’ Cardia proprietary bio-resins and films and will be branded under Jewett-Cameron’s pet retail brand for distribution through leading American and international big box stores, retail chains and e-commerce partners.

An entire branding program will also be launched, revolving around the sustainable benefits of compostable bags.

SECOS said the agreement includes standard industry terms and conditions and is aimed at ensuring both parties commit to growing enhancing volumes and growing market share in this category.

Today’s news follows the company’s announcement last month that it will be supplying compostable bin liners for sale through Woolworths’ (ASX: WOL) Eco store network.

Reducing the use of conventional plastic bags

According to SECOS, there are more than 89 million dogs in the United States and a “similar number” in Western Europe.

“Pet owners are becoming more focused on environmentally friendly ways to manage their pet’s waste and reduce the use of conventional plastic bags and eliminate micro plastic pollution,” the company stated.

SECOS chief executive officer Ian Stacey said the company is continuing to see large demand for compostable bag applications as brands and retailers move to replace single use oil-based plastics with renewable alternatives.

“Conventional plastic production is a major user of finite resources and contributor to CO2 emissions. Pet owners around the world are acting on this concern through their purchasing power and our proven compostable technology is providing them with the perfect solution,” he said.

“We look forward to working with Jewett-Cameron to enter other markets and engage in other activities where the expertise of both companies can be leveraged,” Mr Stacey added.

Jewett Cameron president and chief executive officer Charlie Hopewell said he is “extremely excited to have SECOS Group as a strategic partner for the supply of the compostable pet poop bag range”.

“We know our customers will appreciate the high quality and performance of SECOS’ compostable technology and we look forward to working with SECOS on other opportunities to reduce the use of conventional plastics,” he added.

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