Eagle Beverage Opens State of the Art PHA Injection Molding Manufacturing Facility

Rhea-AI Summary

Eagle Beverage, a leading manufacturer of PHA-based straws, has opened its first PHA Injection Molding manufacturing plant for producing sustainable single-use cutlery. The company has successfully commercialized Danimer Scientific's Nodax PHA resins to manufacture forks, knives, and spoons, and has begun shipping these products to customers.

Eagle Beverage, which previously commercialized Starbucks PHA-based straws in North America, has been awarded a share of the PHA-based cutlery business from a major quick-service restaurant chain. The new facility significantly increases production capacity to meet growing demand for home compostable cutlery. This development marks a significant step towards reducing plastic waste and promoting a circular economy.

Positive

• Opening of a new PHA Injection Molding manufacturing plant for sustainable single-use cutlery
• Successful commercialization and shipping of PHA-based forks, knives, and spoons
• Awarded a share of PHA-based cutlery business from a major quick-service restaurant chain
• Increased production capacity to meet growing demand for eco-friendly cutlery alternatives
• Expansion from PHA-based straws to cutlery, diversifying product portfolio

Negative

• None.

Insights

Environmental Technology Expert

Eagle Beverage's new PHA injection molding facility represents a significant leap forward in sustainable packaging. The use of Nodax® PHA for cutlery is groundbreaking, as it offers a home compostable alternative to traditional plastics. This addresses a critical environmental need, particularly in the fast-food industry where single-use plastics are prevalent. The partnership with a major quick-service restaurant chain suggests a potential industry-wide shift towards more sustainable practices. However, the scalability and cost-effectiveness of PHA production remain important factors to monitor. The success of this venture could accelerate the adoption of biodegradable materials across various sectors, potentially reshaping the $580 billion global plastic market.

Market Research Analyst

This development signals a growing market opportunity in sustainable food service products. With consumers increasingly environmentally conscious, Eagle Beverage is well-positioned to capitalize on this trend. The company's early mover advantage in PHA-based products, coupled with its expanded manufacturing capabilities, could lead to significant market share gains. The partnership with a major quick-service restaurant chain is particularly noteworthy, as it could pave the way for more widespread adoption in the food service industry. However, investors should consider potential challenges such as higher production costs and the need for consumer education about PHA products. The success of this venture could have ripple effects across the entire supply chain, from resin producers to retailers.

Financial Analyst

Eagle Beverage's investment in PHA injection molding technology represents a strategic long-term play in the sustainable materials market. While initial capital expenditures for the new facility may impact short-term profitability, the potential for increased revenue streams and market expansion is significant. The company's existing relationship with Starbucks and new partnership with a major quick-service restaurant chain provide a solid foundation for growth. Investors should monitor key financial metrics such as production costs, profit margins and sales volume to gauge the success of this initiative. The ability to scale production efficiently will be important for maintaining competitiveness in this emerging market segment. Overall, this move positions Eagle Beverage favorably in the rapidly growing sustainable packaging industry, estimated to reach $413.8 billion by 2027.

09/10/2024 - 08:30 AM

KENT, Wash.--(BUSINESS WIRE)-- Eagle Beverage, a leading manufacturer of straws made from resins utilizing Nodax^® brand polyhydroxyalkanoate (PHA), has announced the opening of its first PHA Injection Molding manufacturing plant. This groundbreaking facility marks a significant milestone in the company's mission to revolutionize the single-use cutlery industry with sustainable alternatives.

Eagle Beverage is proud to announce the successful commercialization of Danimer Scientifc’s proprietary resins made from Nodax PHA to manufacture single-use forks, knives, and spoons. Eagle Beverage has already begun shipping these innovative products to customers, demonstrating the immediate market readiness of its PHA-based cutlery lines.

"We're thrilled to bring Nodax PHA-based cutlery to the market at scale," said Aisha Kabani, Executive Vice President of Eagle Beverage. "Our new state-of-the-art manufacturing plant allows us to meet the growing demand for sustainable PHA-based single-use utensils while maintaining the quality and performance our customers expect."

Eagle Beverage was one of the first converters of PHA-based straws in the world using Danimer Scientific’s resins. They successfully commercialized Starbucks PHA-based straws in North America using the novel Nodax PHA-based resins produced by Danimer Scientific. PHA is a home, industrial and marine compostable material, offering a sustainable solution to the environmental challenges posed by traditional single-use plastics.

Stephen Croskrey, CEO of Danimer Scientific said, “We are very proud to be a part of the sustainable commitment Eagle Beverage has made to bring PHA-based home compostable cutlery to the market. Eagle Beverage has made a significant investment with new world class equipment to make PHA-based cutlery on a commercial scale. Our long-standing partnership began with the launch of marine and home compostable PHA-based straws. We are now very excited to help Eagle Beverage bring home compostable cutlery to the marketplace.”

With the opening of this new facility, Eagle Beverage is poised to significantly increase its production capacity to meet the growing demands for home compostable cutlery. Eagle Beverage has been awarded a share of the PHA-based cutlery business from one of the world’s largest quick-service restaurants. The company is prepared to ramp up operations to meet the surging demand for eco-friendly cutlery alternatives.

By utilizing Danimer Scientific’s formulated resins containing Nodax, Eagle Beverage is taking a significant step toward reducing plastic waste and promoting a more circular economy.

About Eagle Beverage

Based in Kent, Washington, Eagle Beverage is a leading manufacturer of beverage products and single use disposable straws. The company has been at the forefront of sustainable food service products for over eight years. The company has established itself as the largest manufacturer of compostable drinking straws in the United States, and is now expanding its expertise to the cutlery market. "Our experience in PHA straw manufacturing has provided us with invaluable insights and capabilities that we're now applying to cutlery production," added Kabani. "We're excited to continue leading the industry in sustainable food service solutions."

For more information about Eagle Beverage, please visit www.eagle-beverage.com

About Danimer Scientific

Danimer is a pioneer in creating more sustainable, more natural ways to make bio-plastic products. For more than a decade, its renewable and sustainable biopolymers have helped create bio-plastic products that are biodegradable and compostable and return to nature instead of polluting our lands and waters.

Danimer’s technology can be used to replace a vast array of plastic end products that people use every day. Applications for its biopolymers include additives, aqueous coatings, fibers, filaments, films and injection-molded articles, among others. Danimer holds more than 480 granted patents and pending patent applications in more than 20 countries for a range of manufacturing processes and biopolymer formulations. For more information, visit www.DanimerScientific.com.

Forward‐Looking Statements

Please note that in this press release we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, the overall level of consumer demand on our products; general economic conditions and other factors affecting consumer confidence, preferences, and behavior; disruption and volatility in the global currency, capital, and credit markets; the financial strength of the Company’s customers; the Company’s ability to implement its business strategy, including, but not limited to, its ability to expand its production facilities and plants to meet customer demand for its products and the timing thereof; risks relating to the uncertainty of the projected financial information with respect to the Company; the ability of the Company to execute and integrate acquisitions; changes in governmental regulation, legislation or public opinion relating to our products; the Company’s exposure to product liability or product warranty claims and other loss contingencies; disruptions and other impacts to the Company’s business, as a result of the COVID-19 global pandemic and government actions and restrictive measures implemented in response; stability of the Company’s manufacturing facilities and suppliers, as well as consumer demand for our products, in light of disease epidemics and health-related concerns such as the COVID-19 global pandemic; the impact on our business, operations and financial results from the ongoing conflict in Ukraine; the impact that global climate change trends may have on the Company and its suppliers and customers; the Company’s ability to protect patents, trademarks and other intellectual property rights; any breaches of, or interruptions in, our information systems; the ability of our information technology systems or information security systems to operate effectively, including as a result of security breaches, viruses, hackers, malware, natural disasters, vendor business interruptions or other causes; our ability to properly maintain, protect, repair or upgrade our information technology systems or information security systems, or problems with our transitioning to upgraded or replacement systems; the impact of adverse publicity about the Company and/or its brands, including without limitation, through social media or in connection with brand damaging events and/or public perception; fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign currency fluctuations; our ability to utilize potential net operating loss carryforwards; and changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks. More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910863703/en/

For Danimer Scientific:

Investor Relations and Media

Blake Chamblee

Phone: 770-337-6570

ir@danimer.com

For Eagle Beverage

Sadru Kabani

skabani@Eagle-Beverage.com

Source: Danimer Scientific

FAQ

What new facility has Eagle Beverage opened for PHA-based products?

Eagle Beverage has opened its first PHA Injection Molding manufacturing plant for producing sustainable single-use cutlery using Danimer Scientific's Nodax PHA resins.

What types of PHA-based products is Eagle Beverage now manufacturing?

Eagle Beverage is now manufacturing PHA-based single-use forks, knives, and spoons, in addition to their existing PHA-based straws.

Has Eagle Beverage secured any major clients for its PHA-based cutlery?

Yes, Eagle Beverage has been awarded a share of the PHA-based cutlery business from one of the world's largest quick-service restaurant chains.

What previous success has Eagle Beverage had with PHA-based products?

Eagle Beverage successfully commercialized Starbucks PHA-based straws in North America using Danimer Scientific's Nodax PHA-based resins.