Abundant Produce (ASX:ABT)
The global beauty care market is set to reach $460 billion by 2018. It is little wonder then, that companies are now working hard to combine scientific research to create commercial skin care products that attract mass markets.
One company looks to stand out above the rest. This $31.8 million capped ASX junior has a unique approach to the industry and is maximising the benefits of plants including tomatoes and cucumbers for use in the nutraceutical and cosmetics industries.
Essentially, this fast moving and tightly held junior extracts certain active botanical ingredients from purpose-bred plant varietals — and sells them exclusively via a branded skin care line.
The company already has a global distribution agreement in place with a company that has well established distribution channels in over 100 countries, including China which is this company’s main target market.
This business has two branches. The first is to collaborate with research institutions to generate plant IP. The second is to turn that exclusive work into ongoing royalty streams, providing an excellent foundation to pursue its commercial interests.
The second arm of the business looks specifically at skin care and the company has already launched its first product: a Tomato Infusion Lycopene Active Daily Face Cream. Two more products are expected to be launched before Christmas: a Cucumber Infused Magnesium Sports Spray as well as a Cucumber Infused Mineral Salts Soothing Gel.
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This year the company successfully registered a trademark in China, which was an important step as it looks to create brand presence both online and eventually offline.
It looks to be well on its way with this attracting more than $100,000 in pre-sales coming through from the Chinese market.
Coupled with the revenues being generated by ABT’s plant extraction royalties, this is a good sign that the company could profit handsomely from its foray into skin care as it looks to heavily expand the business through the release of many more products.