your spot on.Thanks for the link.I looked for a long while but could not find the answer at Hersheys. Now how is this going to make IDND any real money.The valve costs? times a billion units equals a long time....Whats the math that will make this company some real profit?
The business plan has some known assumptions. We know the annual yearly sales of current bag-in-box products is over 140 billion pouches. What we don't know is the details of the negotiated deals. The deals will come and get negotiated on deal by deal basis, based on the shared revenue of the total packaged solution. The most important thing for us is that we own the intellectual property (The Answer) and we have a monopoly on the market for many years.
Don't be short sighted to think that it's a cost/profit equation for the plastic tap itself (hair pie's self aclaimed boner). We are enabling total product solutions that do not currently exist. Shareholders should anticipate a negotiated % shared revenue across the total packaged solution. We're hopeful that we get an initial hightened percentage share based on our monopoly position. They wouldn't have a product without us. Then a leveling over time, and increased volume, as the product becomes ubiquitous.
Now the fun part.... that's the know assumptions.
What's even more exciting is the bulk retail food service market that continues to languished as an after thought. Think about all the tubs, pails, large cans, bottles, jars, and all the other types of non-sustainable, cumbersome packaging. Then add emphasis on "non-sustainable". It's not just the value to the customer to pay a little more for aseptic BIB packaging based on all the wasted 1/2 full containers they throw out becuase of spiolage. How many marketing ad's do you see trumpeting healthy, organics........ NO PRESERVATIVES.
Leading to the cherry on the sundae. We enable taking preservatives out of products and inventing products that don't currently exist. We already have one of these...... preservative free, shelf stable, cooking stocks. Never existed before The Answer.
Once we hit around $20 billion revenue/year we can rest and begin to consider selling a couple hundred shares to put the kids through college.
The Answer will be incorporated in beverage dispensers sold by many companies. The repeat business is very large. I assume they will make .15-.20 cents/unit from some customers but far more from others.