Tuesday October 2, 2012
Rev7 Gum Loses Money In U.S. Market
Dayton, OH — Rev7 sugarfree degradable gum, produced by UK-based Revolymer Ltd., had lower-than-expected U.S. sales and suffered a loss in its 2012 first half results, according to the company.
At around $219,000, this year's reported sales were three times higher than the previous year, but an overestimation of U.S. consumer demand led to a gross loss of $392,000.
All of the Rev7 gum sold in the U.S. was manufactured between January and September 2011 with a two-year shelf life, the company says. As many retailers will not stock items with less than six months of remaining shelf life, Revolymer says it lost around $492,000 in spoilage.
The company says it now plans to test consumer demand for the product in a European market.
Robin Cridland, CFO and company secretary, says: “Our strategy is to license the technology to the larger players. Selling the gum is simply designed to demonstrate there is consumer interest at some level in a removable degradable gum.”
The company reports that Rev7 gum degrades in two to three months in drains and will break down in less than two years on pavement.