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Cardia Bioplastics Wins Contract with KFC to Supply Compostable Bags

Strategic Insights

— 1 min read

Cardia Bioplastics, a green-packaging company, has secured a contract to provide compostable bags to fast-food giant KFC in South Australia. This move comes after the South Australian government introduced a ban on non-compostable plastic bags last year. The company's managing director, Dr. Frank Glatz, highlighted the environmental benefits of the compostable bags, which can break down within six to 12 weeks and fully convert to carbon dioxide and water within six months.

Key Takeaways:

  • Cardia Bioplastics has won a contract to supply compostable bags to KFC in South Australia, with an expected shipment of millions of bags.
  • The bags are made from a resin that can break down within six to 12 weeks and fully convert to carbon dioxide and water within six months.
  • The move is in response to the South Australian government's ban on non-compostable plastic bags, which is expected to be introduced in Western Australia and the Northern Territory.
  • Dr. Frank Glatz stated that Australia is following the lead of Europe and California in implementing bans on non-compostable plastic bags.
  • The contract is a significant win for Cardia Bioplastics, with the company's shares trading up 0.6 cents, or 31.58 percent, to 2.5 cents.
  • The compostable bags are designed to degrade in ocean environments within a few years, compared to hundreds of years for conventional plastics.

Statistics:

  • Cardia Bioplastics' shares were trading up 0.6 cents, or 31.58 percent, to 2.5 cents by 1420 AEST.
  • The company expects to provide millions of compostable bags to KFC.
  • The bags are made from a resin that can break down within six to 12 weeks.
  • The kits will fully convert to carbon dioxide and water within six months.
  • Approximately 2.5 cents per share is the current price of Cardia Bioplastics' stock.
  • The compostable bags are expected to reduce plastic waste in South Australia.

Sources:

  • AAP (Asian Pulse)
  • Cardia Bioplastics Ltd (ASX:CNN)
  • South Australian government
  • Western Australian government
  • Northern Territory government
  • European countries
  • California (USA)

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