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Monday, November 09, 2009 6:41:07 PM
Most of their business has historically been organic products for gardening and the like, but the secret weapon is their hand sanitizers and cleaning products that are effective against 99.99% of germs and are approved for ordering by the federal government. USDA "BioPreferred" products get preference in government ordering, so they expect increasing government sales of their cleaners and hand sanitizers as well as their other (garden product) stuff. Here's a section of their 8/14/09 10-K:
"Since its participation in the USDA BioPreferred show in June of this year, the Company has attained USDA BioPreferred status for many of its commercial cleaning and hand sanitizer products. This distinction continues to open doors for those distributors who sell the government through GSA and other related contracts. The Company has shipped orders to the CDC (Center for Disease Control) and Homeland Security. The Company anticipates additional interest within various government sectors in the near future. Furthermore, the Company is in discussions with two other major national and international distributors who sell to the government.
The Company continues to receive orders from Fisher Scientific, its National Laboratory Distributor that sells into the colleges and universities, Hospital and Healthcare Laboratory industries, Educational K-12 and Government services, the Company’s OSM branded line of all natural products to their customer base. The Company is now working with Fisher Scientific to add its products to the Fisher Scientific Safety division, which focuses heavily on municipal and government sales. The Company and Fisher are also finalizing the additions of its fertilizer and other garden related items. While this is a new category for Fisher Scientific, both companies see tremendous opportunities for both the school campuses and wine industry."
While I was meeting with them, someone called the CEO, Sam Jeffries, to tell him that a large midwestern university had just ordered 25 cases of their hand sanitizer. Sam is expecting a big increase in sales to schools. They are also in discussions with some huge companies that will be nice to have as distribution partners, and maybe to sell their own rebranded OSM products, and sales should begin to ramp up through all channels.
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