Save Foods Issues CEO Stockholders Letter Providing Industry Update

Rhea-AI Summary

Save Foods (NASDAQ: SVFD) announced a significant advancement in eco crop protection, offering treatments that reduce pesticide use by 75%-100%. This innovation aligns with the rising European regulatory demand for lower pesticide residues, presenting a viable solution for exporters facing strict limits. The company has seen robust interest for pilot programs in key markets like Turkey and Mexico, with a successful conversion of trials into paying customers. Save Foods aims to capitalize on this momentum, anticipating strong sales growth in the latter half of the year.

Positive

• Reduce pesticide use by 75%-100%, aligning with EU's zero-tolerance policies.
• Strong interest from European exporters indicates market demand.
• Successful conversion of 100% of trials into paying customers.
• Expansion into key export markets such as Turkey, South Africa, and Mexico.

Negative

• None.

Growers and packers currently rely on pesticides to address pathogen risk in the transportation of fruits and vegetables from field to table

Save Foods’ treatment reduces the need for pesticides by 75%-100%, making it an ideal solution to address move toward zero-tolerance pesticide residue limits from European regulators and retailers

Miami, FL, June 01, 2022 (GLOBE NEWSWIRE) -- Save Foods (NASDAQ: SVFD) (FSE:80W) (“Save Foods” or the “Company”), an agri-food tech company specializing in eco crop protection that helps reduce food waste and ensure food safety, is pleased to provide the following Letter to Stockholders from Dan Sztybel, the Chief Executive Officer of Save Foods Israeli subsidiary.

Dear Stockholders,

In today’s global world, fresh produce often travels considerable distances over long periods before reaching consumers, increasing the likelihood of existence of pathogens. Businesses along the food supply chain currently rely on pesticides to address this challenge but face increasingly strict standards related to the limit of pesticide residue allowed by regulators and retailers. Our eco crop treatment eliminates 75% to 100% of the pesticides currently used in packing houses, while keeping produce fresher longer, ensuring it arrives in conditions that meet the standards of both the EU and retailers.

As regulators and retailers across Europe move toward a zero-tolerance policy regarding pesticide residue limits, we are seeing rapidly growing interest from exporters to Europe asking for pilots. With a track record of converting 100 percent of our trials into paying customers, we anticipate a strong second half of the year as we build on this early momentum.

European Union countries are among the strictest in terms of pesticide residues on fruits and vegetables. As part of the EU’s Farm to Fork and Biodiversity strategies, the EU has set a goal of reducing pesticide use by 50% by 2030. However, as a practical matter, residue limits are often even lower than the legal limits for certain retailers. Some of the leading European supermarkets require products to comply with a residue level of 50% or less of the legal limit. For example, Lidl, a German discount retailer, requires its suppliers to deliver products with residues not exceeding 33% of the legal limit.

Increasing transportation time along the food supply chain combined with the need for lower pesticide use creates a catch-22 of competing needs. While growers and packers want to protect their produce from becoming rotten during the long journey to consumers, they also need to make sure they do not cross the tight limit of residues allowed to avoid rejection of their merchandise. Our treatment is the model solution to this challenge.

Europe accounts for more than €60 billion (approximately $63 billion), or 44%, of the global trade value of fresh fruit and vegetables, and includes five of the 10 largest importing countries in the world.

Save Foods’ eco crop protection treatments have proven to be successful tools in fighting food waste of fresh produce all along the food supply chain.

To address the immediate opportunity in Europe, as well as to mitigate the impact of seasonality on our activities, Save Foods has rapidly expanded its presence in key markets that export to Europe, including Turkey, South Africa, Mexico, Peru, and Columbia. We are hopeful the current pilot programs we are running will replicate the success of previous trials, leading to strong sales acceleration in the second half of 2022 and beyond.

Sincerely,
Dan Sztybel, CEO
Save Foods Ltd.

About Save Foods:

Save Foods is an innovative, dynamic company addressing two of the most significant challenges in the agri-food tech industry: food waste and loss and food safety. We are dedicated to delivering integrated solutions for improved safety, freshness and quality, every step of the way from field to fork. Collaborating closely with our customers, we develop new solutions that benefit the entire supply chain and improve the safety and quality of life of both the workers and the consumers alike. Our initial applications are in post-harvest treatments in fruit and vegetable packing houses processing produce including citrus, avocado, pears, apples and mangos.

By controlling and preventing pathogen contamination and significantly reducing the use of hazardous chemicals and their residues, Save Foods products not only prolong fresh produce shelf life and reduce food loss and waste, but they also ensure a safe, natural, and healthy product.

For more information visit our website: SAVE FOODS – SAVE FOODS

Forward-looking Statements:

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, we are using forward-looking statements in this press release when we discuss, among other things, expanding our presence in key markets that export to Europe, including Turkey, South Africa, Mexico, Peru, and Columbia, and that we are hopeful the current pilot programs will replicate the success of previous trials, leading to strong sales acceleration in the second half of 2022 and beyond. Actual results, performance or achievements could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including market conditions and the satisfaction of all conditions to, and the closing of, the offering, as well as those discussed under the heading “Risk Factors” in Save Foods’ annual report on Form 10-K filed with the SEC on March 29, 2021, and in any subsequent filings with the SEC. Except as otherwise required by law, we undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. We are not responsible for the contents of third-party websites.

Media Contact:
Yana Delman
IR@savefoods.co

US Investor Relations: 
Dave Gentry 
RedChip Companies Inc. 
1-800-RED-CHIP (733-2447) 
Or 407-491-4498 
SVFD@redchip.com

German Investor Relations:
Dr Eva Reuter
e.reuter@dr-reuter.eu

FAQ

What pesticide reduction does Save Foods offer?

Save Foods offers treatments that reduce pesticide use by 75%-100%, aiding compliance with European regulations.

What is the market reaction to Save Foods' new treatments?

There is significant interest from exporters in Europe, indicating a favorable market reaction to Save Foods' new treatments.

What are Save Foods' plans for market expansion?

Save Foods plans to expand rapidly in key markets exporting to Europe, including Turkey, South Africa, and Mexico.

What is the expected sales growth for Save Foods in 2022?

Save Foods anticipates strong sales acceleration in the second half of 2022 due to successful pilot programs.