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Great spot 2p, its not just Heinz though, there's a long list of Ingenuity customers buying further services, onboarding more and more divisions.

Economies of scale will kick in for Ingenuity, can see this really snowballing over next 12/24 months.

Green rows indicate new positions

https://fintel.io/so/gb/sfor

Delayed of course but going in the right direction, added 283k shares

Schwab Fundamental International Small Company Index ETF reports 33.79% increase in ownership of THG

https://fintel.io/so/gb/thg/schwab-strategic-trust-schwab-fundamental-international-small-company-index-etf

Yes, tend to agree - ESG reporting is now standard especially within FTSE companies, supply chain management is key for overall reporting metrics.

Yup OAC, staggering sum really - Swedish match classify ZYN under smoke free category so not exactly sure.

Smoke free is by far the largest revenue and growth producer for Swedish match and likely the main attraction for PM, I'll pop up some more info when things are a bit quieter.

Nice spot Yorek, machine THG rumbling along..

Trivia question, how much do you think Phillip Morris paid for ZYN ?

$200m ?

$300m ?

$500m ?

All too high ?

Whilst no an instant impact it will deter further investment into conventional pesticides, increasing interest in alternatives such as PHC.

EU committee adopts proposal to halve pesticide use by 2030

https://www.rte.ie/news/europe/2023/1024/1412747-eu-pesticides/

On Tuesday the Environment Committee adopted its position on measures to ensure sustainable pesticides use and reduce the use and risk of all chemical pesticides by at least 50 % by 2030.

https://www.europarl.europa.eu/news/en/press-room/20231023IPR08130/pesticides-meps-want-a-drastic-cut-in-use-of-chemical-pesticides

Hutchmed 4th largest holding following merger with Loncar 23rd Oct 23

https://www.rangecncr.com/

It seems we are virtually 100% dependant on US funds for the moment until S4 joins the main FTSE indexes.

TEMWX - Templeton World Fund Class A reports 6.13% increase in ownership of SFOR / S4 Capital PLC

https://fintel.io/so/gb/sfor/templeton-funds-templeton-world-fund-class-a

I tend to think of GMV more as a barometer of travel than actual profits, some instances may have high volume turnover but on a 'pay-per-click' model which is low cost and automated.

As you say, much depends on the contract terms but more importantly the overall package, using Phillip Morris as an example their terms are as follows:

"THG Ingenuity is responsible for trading, marketing, strategy and operations as part of a 10-year end-to-end service partnership, with ambition to roll out the launch into multiple territories."

Fulfilment (GMV) might be low profit in this instance, but marketing for ZYM using THG Studios could be very good.

Couple more notes to add as potentially it may work out to be something of a surprise.

Investors not familiar with Phillip Morris may not know but they have committed to a smoke free future, one of their key products in achieving this is ZYN, from recent results:

"ZYN nicotine pouch (NP) shipment volume in the U.S. of 89.9 million cans, representing growth of 53.1% versus second-quarter 2022 Swedish Match shipments of 58.7 million cans"

Its worth having a look over their results as turnover last year was in excess of $80b

https://www.pmi.com/media-center/press-releases/press-details?newsId=26631

We know that Ingenuity has a 10 year partnership agreement with PM in multiple territories, its not easy confirming which sites use Ingenuity other than links posted, US and others have age verification process to go through making it a bit tricky.

ZYN UK

https://uk.zyn.com/about-zyn.list

ZYN Germany

https://ch-fr.zyn.com/

Another somewhat obvious thought although still worth pointing out as it may explain the delay in finding a new partner.

2023 has seen a steady onboarding of well know brands to the platform, the list is long heading towards the much fabled £1b GMV as reiterated recently.

So here's the thing, the longer they leave it the higher potential valuation as a simple metric of increasing GMV, if management can go to market quoting the £1b achievement its bound to attract a lot more interest, no?

The more onboarding, the higher value and forward looking cash flow.

Here's the Crest loan data covering that period, borrowing went up hand in hand with put ratio, this was well planned organised imo.

Jun-22 2.90%

May-22 3.17%

Apr-22 4.15%

Mar-22 6.72%

Feb-22 6.69%

Jan-22 7.42%

Dec-21 5.79%

Nov-21 3.37%

Not convinced Jatw, we have had so many 'events' like this which turned out to be non-events it makes me sceptical, we can all watch the share price go down then pick from a selection of 'events' but no one really knows if that is accurate or not.

The only thing which has made a notable difference revolves around global interest rates coupled with China economy, Hutchmed tanked after rates started going up and recovered almost back to where it started following Covid exit by China.

We also know short borrowing jumped significantly around this time, look at the spike in puts ratio, this was well planned by those moving the chess pieces imo

https://images.fintel.io/us-hcm-put-call-ratio.png

Https://news.agropages.com/News/Detail-47996.htm?utm_source=substack&utm_medium=email

A web site dedicated to the humble potato !

Pinched this from Eden thread, use of Biologicals in Brazil - reaffirms perhaps what we already know.

Interview: FMC Reveals Insights on Biologicals Market Growth in Latin America

The tobacco giant, however, saw success in its line of electronic cigarettes and its Zyn nicotine pouches as it continues to pivot away from its traditional cigarette business.

CEO Jacek Olczak said the quarter was the first time the company has topped $9 billion in quarterly net revenue.

https://www.cnbc.com/2023/10/19/philip-morris-pm-earnings-q3-2023.html

https://ch-fr.zyn.com/

Lots of speculation on what may happen to unlock value, nothing is certain but looking at what we know and how Ingenuity peers are responding my guess is for an Ingenuity equity partner, why?

> This model is tried and tested amongst peers, market moving in this direction (Ocado, Walmart, others)

> Companies like Pentland, Nestle, L’Oréal have already invested a significant amount of resources into partnering with Ingenuity, as these relationships grow stronger it makes commercial sense to invest in your partner, symbiotic relationship.

> Partners benefit commercially the more divisions added onto the platform, win, win.

> Ingenuity is already separated out ready for Softbank

>Ingenuity is currently valued at zero, equity injection would change that immediately with no dilution or US listing costs.

>Lastly, there are just so many potential suitors, one could argue this alone gives a higher percentage chance of something happening.

This is by far the easiest and most obvious option, you can see by partner job ads just how integral Ingenuity has become to their business.

Just my ramblings after chopping up logs the whole day, nothing like a chainsaw to wake up the grey cells lol