Raytec Capital Corp.
The headlines have been frightening: E-coli, salmonella, streptococcus,
staphylococcus, listeria, etc. Tainted foods have caused illness
& death in the U.S. & in other countries. The demand for safe, high
quality foods is creating a need for improved methods of perishable
control in the food industry.
Current methods are grossly inadequate & basically ineffective.
Major retail chains, distribution centers, transporta-tion companies,
& food processors are seeking new tools to ensure food safety while
maintaining profitabili-ty. The food industry is being regulated
more & more by govern-ments seeking to stem the tide.
Consider these facts: Every 58 minutes one person will die & another
1,027 will become sick from a foodborne illness in the U.S. That's
9,000,000 annually; From 1973 to 1987, only 2% of foodborne illness
cases stemmed from produce. However, from 1988 to 1991, this figure
increased to between 5% & 8%; in 1997, 25 million pounds of hamburger
were recalled from an outbreak of E.coli. The economic impact of
spoilage is also substantial. It is estimated that $5.8 billion
of food product is lost each year due to spoilage.
Another problem: The retail food industry faces an ongoing problem
with shrinkage, the reduction of size & weight of produce through
loss of moisture, reducing profitability. Industry estimates indicate
that the typical retail grocer will lose about 2% due to shrinkage.
Nationally, this amounts to almost $750,000,-000 every year. A major
Raytec is well on the road to solving these problems through the
acquisitions of Fractal, the leading manufacturer of moisture maintenance
technologies, & Astech, the leading service provider of perishable
equipment supplies. In addition, Raytec invented a dry media chlorine
dioxide called dmC102, a unique patented technology for the generation
from dry media cursors for both food & non-food application. A strategic
alliance with Englehard Corporation has created the first complete
offering in perishable food management in the industry.
Started in 1978, Raytec was originally a junior resource company.
It began marketing automated produce misting systems to retail grocers
under the trade name Hydro Mist in 1993. It then acquired Fractal
in 1995, & Astech in 1998. With over 13 years experience, Raytec
is the leading manufac-turer, developer, & marketer of perishable
control systems for the food industry. It is leading the way for
antimicrobial control products. The company holds various patents,
patent applica-tions, trademarks, & other intellectual property
Raytec supplies products to the food industry. It sells produce
misting systems (you've seen them working in the better supermarkets
such as Harris Teeter & Stop 'N Shop), service case dehumidifiers,
dewpoint humidifi-ers, ethylene control sachets, air treatment systems,
reverse Osmosis filtration systems, & water softeners.
It is launching its ShrinkGUARDTM product line 5/2/99, following
excellent test results by an independent auditor. Testing of over
115 different product items demonstrated that an average of 40%
reduction on overall product shrink was achieved with the use of
Such shrinkage costs the typical North American grocer almost
$62,400 each year.... the use of ShrinkGUARDTM matting could save
each store about $25,000 annually. This product also comes in a
sachet form which releases the chlorine dioxide vapors over a period
of up to two months, preventing shrinkage & eliminating bacteria,
viruses, fungi, & odors.
Chlorine dioxide is well-known in the food processing industry
as a powerful broad spectrum biocide effective against microor-ganisms,
thereby increasing food quality & reducing public health concerns.
A major disadvantage was that it had to be applied only as a rinse,
spray, fog, cream, or gel.
Raytec developed a revolutionary new technology in the use of
dry media chlorine dioxide. It is an environmentally friendly technology
that protects human health from bacteria & other microorganisms
while protecting the environment from harmful bi-products formed
by other disinfectant methods.
Once it has killed a wide range of bacteria, viruses, & other
microbes, it reduces safely into common salts - no potentially carcinogenic
organic com-pounds or harmful by-products are generated. Unlike
ordinary chlorine, dry chlorine dioxide (CIO2) eliminates many of
chlorine's safety & handling problems in addition to reducing harmful
Raytec's alliance partner, Englehard Corp., developed a Controlled
Sustained Release (CSR) system which allows the release of chlorine
dioxide in safe & effective doses, in a wide range of concentrations
over time spans ranging from minutes to months. Dry media can thus
be tailored to meet a wide range of application requirements. It
also eliminates the need for mechanical generators & mixing equipment,
& greatly reduces shipping & storage costs.
The list of potential applications for chlorine dioxide is huge:
soil sterilization, grain storage, contamination control, air cleaning,
deodorizers, smoke damage restoration, produce liners, food processing,
seafood deodorization, meat & poultry pads, medical & dental trays,
bio-hazard waste containers, bandages, water filters, etc.; any
place where cleanliness & deodorizat-ion is required.
There are over 128,000 grocery stores & 30,000 supermar-kets generating
over $412 billion in sales in the U.S. This extremely competitive
industry produced an after-tax profit of only 1.2% in fiscal 1996;
therefore reduction of spoilage & shrinkage is very important. Of
the $5.8 billion of food product lost per year, $652 million is
in produce alone.
Most importantly, every 58 minutes, foodborne illnesses kill one
person & affect 1,027 people in the U.S., & strong new governmental
regulations have been implemented. Along with heavy media attention,
opportunities for Raytec's products & unique technologies abound.
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