Vital Products (VTLP)

Vital Products, Inc. (OTCBB: VTLP) is a distributor of industrial packaging products. The company plans to identify and invest in emerging market segments in the industrial packaging sector. The company through its research and development arm in Canada and the US will patent, trademark and or license new products and systems that it can use to establish it self as a leader in environmentally sustainable packaging options.

Vital was formed in 2004 to take advantage of emerging markets in the industrial packaging sector. It was clear that this sector had become static in terms of new product development and its overall inability to address the environmental issues at hand.

Vital as a company is driven by 2 market segments, industrial packaging distribution and manufacturing, which will feed the company’s distribution, while new manufacturing units will be set up to produce new environmentally appropriate products.

Key elements such as expertise in sales, logistics, and customer service have grown the company to profitability in the last two years, now the company is positioned to move to the next phase of its growth strategy.

Vital is a key player in the industrial packaging market in Quebec. In the last 2 years the company has been aggressive to grow its core business. Vital has established excellent relationships with its key customers and will continue to foster those relationships.

The company distributes industrial packaging products for major packaging materials manufacturers. Those manufacturers include Polyair (bubble packaging), Noranpak (corrugated boxes), AEP (stretch film) and Intertape (packing tape).

As a regional player the company will continue to concentrate on its regional business, and seek further growth via new strategic distribution locations and acquisitions of exiting distributors in eastern Ontario and northeastern New York State.

Signed Letter of Intent

Aquire Profitable Den Packaging Corporation

In mid-September, Vital signed a Letter of Intent to purchase Montreal based Den Packaging Corporation. Established in 1972 Den Packaging Corporation has booked annual revenues over $1.75 million for the past several years and solid net profits. The company currently intends to pay a combination of restricted company stock and a note for the acquisition.

“The addition of Den Packaging Corporation will undoubtedly strengthen our standing in the industrial packaging sector,” commented Vital Products Chief Executive Officer, Michael Levine. “Their corporate directive and extent of industry reach and respect lends extremely well to our mandate. As we continue developing new product lines that can be licensed to several industrial sectors our exceptional team continues to gain momentum exploring several niches and developing exciting revenue streams. I look forward to updating you as we continue to progress with our business plan.”

Signed Consulting Agreement

DLW Partners of Toronto

In early October, Vital announced that it had signed a consulting agreement with DLW Partners of Toronto.

DLW Partners is an industrial packaging consulting firm specializing in market analysis, market and product strategies and the development of product line extensions. The company has over thirty years of experience in manufacturing, sales, marketing and logistics, specific to the industrial packaging market in North America.

 

Disclosure: Pentony Enterprises LLC has been compensated 175,000 free trading shares from a non-controlling party for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. We currently hold one hundred thousand shares. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.

 

PRODUCT DEVELOPMENT

Rising oil prices have a direct affect on the industrial packaging market. Plastics represent a large part in the over market segment. Products like stretch film, plastic tapes, and plastic bags, void fill packaging foams and bubble materials all are environmental problems.

Although significant science has been done with regards to new environmental appropriate products, little of this technology has found its way to market.Vital through its relationship with two research and product development companies has now tapped into this scientific stream. Vital has developed communication lines with the University of Toronto, Kansas State University and the research and development arm of the US Agricultural Department.

Products in development

Biofill

is a biobased foam in place packaging material used as cushioning in electronic, giftware, automotive and machine parts. The company has a composition patent.

 

E-coplank is a biobasd packaging foam plank used in fabrication of cushion packaging for high end products currently in development. The company has a utility patent

E-Foam is a biobased flexible foam used in automotive components such as head rests. The company has a composition patent.

Enviro-fill is a loosefill packaging biobased foam used in void fill packaging in gift ware and electronics markets.

Biofill, E-coplank, and E-foam are new innovations by Vital. These products are now in the final stages of development and Vital expects to be first to market in each case.

 

 

STRATEGY

Innovation, Branding, competitive pricing, environmental sensitivity, and corporate governance will differentiate the company.

Innovation

The company has engaged two companies, one in Canada and another in the U.S., to develop specific bio based foam technology for the packaging market. These products utilizing renewable resources and up to 70 % bio based ingredients, producing a product significantly more environmentally acceptable. In addition the manufacturing techniques required to bring these products to market are traditional, that is, little or no equipment changes are required.

Environmental Acceptance

As we are aware our environment is at a critical point. The company recognizes this and as a company Mandate it will only introduce new products and systems to the market that contain at least one environmental acceptable component.

Branding

The company through its research and development arm in Canada and the US will patent, trademark and or license these new products and systems. First to market and Branding will be key elements in this process.

Differentiation

The company will be known as one that establishes new products in existing markets and new markets for existing products, using differentiation as a key strategy.

Differentiation may be in the form of changing traditional distribution methods in the form of new communication links with its customers. Development of custom software to link directly to the company’s inventory, the Companies accounts payable and the Companies product data base.

These components and others will differentiate the company and provide a sustainable link to the future.

Corporate governance

Governance will be top of the mind in all the Companies dealings, internal or external. It is of the highest priority that the company protect its stakeholders and shareholders. Checks and balances in every aspect of the company’s day to day business will be the norm.

Competition

Competitive strategies of the company are founded on understanding market trends, customer needs and understanding of the company’s competitors. The company will deliver a unique mix of values that its customer recognizes as a competitive advantage. Quality, price, service, communication, environment sensitivity, new products and new market opportunities are all parts of the mix of values. With these components the company will have a competitive advantage over its competition.

The company continually monitors its competitive advantage adjusting it as market conditions change and old competitors exist and new competitors enter.

 

Segmentation

As the company continues to evolve segmentation of specific businesses will be needed. As segments grow under the Vital umbrella they will be monitor, and at specific milestones of volume, revenues and profitability these business will be segmented and split off as viable stand alone operating units of Vital.

Manufacturing

It follows that the development of new technologies will require, in some cases, a manufacturing facility. Using our segmentation strategy these technologies will be commercialized as stand alone operating units. Further within the segmentation strategy, products or product lines may be at the life cycle stage where price is a critical decision factor and there is a need to look at a new way of supporting price. Lowering cost and increasing efficiency will come in the form of a stand alone manufacturing unit that will feed the company’s distribution network.

Markets

Vital currently competes in a diverse market called Industrial Packaging. Traditional products include; corrugated boxes, packaging tapes, stretch films, Cushioning and void fill packaging are tradition product lines. These are the key revenue streams of Vital’s distribution business.

The North American Industrial Packaging market has been driven by distribution. The market is significant in size and it is the company’s best estimate that this market exceeds 100 billion dollars in annual sales.

It is difficult to determine actual market size since the majority, some 70 to 80 % of the players are private companies and revenue data is virtually impossible to collect.

Corrugated box

Typically corrugated box manufacturing is a combination of private and public manufacturers. Over all there are 149 paper mills in.

North America producing 1.8 million tons in 2007 (Paper Loop Inc 2007), with 1600 box plants (American Forestry Association).

1600 box plants generate $24.7 billion in annual sales (Corrugated Packaging July 2008).

Packing Tape

There are 1411 importers of packing tape in the North American Market. Most imports are from China, Taiwan, Iran, and Europe.

 

 

 

 

Management

Michael Levine

CEO

Michael has been in the industrial packaging business for over 20 years. He currently is CEO of Vital and will direct the over strategy of the company Michael owned and operate success business growing companies from startup or acquisition of companies on the brink of bankruptcy Michael has a keen sense of what the customer needs. His sales prowess is evident in his ability to turn failing companies into viable organizations. Further he is analytical by nature but has an ability to micro manage when required or step back and macro manage allowing his people to rise to the top. Michael attended McGill University and 30 years of real world business acumen.

 

CONTACT

Vital Products, Inc.
245 Drumlin Circle
Concord, ONT L4K 3E4
Canada

 

Phone:
905-738-5216

 

Fax:
(905) 738-7525

 

Email:

 

Website:
http://www.vitalproductsinc.com/

 

Investor Relations:

Disclosure: Pentony Enterprises LLC has been compensated 175,000 free trading shares from a non-controlling party for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. We currently hold one hundred thousand shares. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.