OurPet''s Company (fka OPCO)

[MissionIR]

OPCO Targeting $2.5 Billion Market with New Switchgrass Biochar Litter

According to the American Pet Products Association’s 2015-2016 National Survey (http://dtn.fm/0hCVP), there are roughly 86 million pet cats in the United States, up from about 21.5 million in 1970. Across the nearly 43 million American households that currently own a pet cat, one seemingly nondescript product has become virtually ubiquitous – cat litter. Cat litter originally burst onto the scene nearly 70 years ago, according to a report (http://dtn.fm/h8mJR) by The Washington Post, when a man named Ed Lowe repurposed some excess clay into a cleaner alternative to soil or sand, the standard solutions to feline waste in those days. This clay-based product, which he marketed as Kitty Litter, proved an exceptional choice for absorbing large quantities of waste while simultaneously controlling odors by encapsulating the cat waste. The total U.S. litter market is estimated to be about $2.5 billion with clay litters growing at approximately 3%, while the natural litter market is estimated to be about 10%-15% of the total and growing over 10% annually.

This clumping clay litter was a hit, quickly replacing sand as the standard in feline waste management. The clay clumps formed made waste removal easier and kept the odor physically locked up. Now having a cat in the home became easier, and less “smelly”, than ever before. Although the clay litter was a disrupter for the pet industry, there were some problems associated with it such as adding an estimated two million tons of non-biodegradable litter to the landfills, dust being inhaled by cats and possibly contributing to silicosis in the long run (also known as coal miners disease), a difficulty and inconvenience of transporting the heavy clay from the store to the home, and the realization that clay is a non-sustainable resource.

To try and combat the problems that came with using clay litter, cat owners started using biodegradable, natural litters made from grains such as wheat and corn. These “second generation” litters were sustainable, lighter, and had good odor control. Although these alternate litters were an improvement over clay, they had their limitations. They were more costly and more price variable since the grains were also used for food and fuel. These litters could have traces of fungicides, herbicides, and pesticides from their sources’ plant growth. Lastly, their high starch content could result in mold growth under certain conditions of warmth and moisture.

After years of extensive product development and testing, OurPet’s Company (OTCQX: OPCO) has ushered in the “third generation” of cat litter made from switchgrass and biochar, a non-food alternative to the other corn or wheat based natural cat litters in the marketplace. Switchgrass is a hardy, natural grass native to North America that does not require fertilization or the use of chemicals during plant growth, such as fungicides, herbicides, and pesticides and the toxins associated with them. Switchgrass is biodegradable and has a history of being used for flood control and ornamental purposes, not for feedstock or as a base for fuel. Biochar is made using the pyrolysis process to convert natural pine wood chips to activated, non-marking carbon particles that are highly odor and moisture absorbent. During pyrolysis, the volatile gases are collected and used as clean burning fuel while the CO2 is trapped in the pine wood with minimal CO2 release into the atmosphere.

The OurPet’s Switchgrass Biochar cat litter is biodegradable, all natural, sustainable, price competitive and price stable, 50% lighter than clay litter, and has excellent odor and moisture control with minimal dust and track-ability.

OurPet’s has filed a utility patent for their Switchgrass Biochar litter and plans on marketing it primarily under a private label strategy, with a branded option in certain specific situations. The Switchgrass Biochar litter will be launched at Global Pet Expo 2016, March 16-18. OurPet’s will be at booth #2455.

For more information, visit the company’s website at www.ourpets.com