Domino invests $50m in egg-coding startup
Domino Printing is investing $50m (£30m) cash for a 15 per cent equity stake in a new company, The Egg Network, exploiting a tracking solution for eggs that promises to reduce the prevalence of salmonella.
The issue is of major concern, of the six billion dozen eggs produced in the US each year, more than 500 million were recalled last year due to salmonella enteritidis disease (SE), causing over 3,500 illnesses as reported by the Center of Disease Control and Prevention.
US food safety legislation has now imposed new requirements of US egg producers to strengthen salmonella prevention efforts, an area The Egg Network (Ten Media) is looking to exploit.
"The simple "Best Before Date" is no longer an adequate protection," said Domino managing director, Nigel Bond. "Today full traceability of products from source to point of consumption are increasingly required."
The solution has come from technology developed by NewMarket Impressions (NMI), part of private equity group, the Yucaipa Companies, and is being commercialised through Ten Media for which Domino will also provide all manufacturing services, hardware and maintenance.
It involves a comprehensive, real time end-to-end solution to aid the prevention of SE and its proliferation during the production, storage and transportation of shell eggs.
NMI has also developed a proprietary marking and coding system that marks certified fresh dates and trace codes onto the shells of individual eggs, enabling every egg to be identified and traced, from harvest to table and back, through its supply chain.
The NMI system can integrate with all purchase order systems and can identify shell egg product in real time at and during any point in its production, storage, transportation and consumption cycle.
NMI is now transferring all of its knowledge, proprietary software and patents relevant to the US egg industry to the new company, Ten Media, for which Domino will be the sole supplier of both laser and ink jet coding equipment, fluids and aftermarket services.
Domino expects the income from the trading activity with Ten Media to be earnings enhancing from 2012 with the potential for significant additional value from the equity shareholding in the medium term.
Bond believes the partnership will allow the company to significantly increase its market share of laser and ink jet coders and over time will deliver significant returns.
While the new group's first priority will be the egg industry in the USA, Domino also intends to grow its existing global egg marking and coding services through the new venture and offer the NMI technology to existing and future customers.
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