Blis chief executive Barry Richardson told shareholders, at the annual meeting yesterday, that rather than focus on finished probiotic products, attention was now on supplying branded ingredients, which meant production and marketing costs were the responsibility of the product maker and not Blis.
The company has appointed an agent and distributor in the United States and is working with "two significant" global customers which, if successful, could open up significant sales through licensing agreements.
One company was in the top five United States retailers and the second a major global consumer company, with the introductions made through its agent, Jack Klein, and distributor, Frutarom.
Securing sales depended on trials and further evaluation by the two unnamed companies.
The Blis meeting, which attracted about 30 shareholders, was without the shareholder tension and frustration of previous meetings, due perhaps to the successful injection in the last year of $3.5 million from Edinburgh Equity Nominees and a renounceable rights issue.
Dr Richardson said the US market was the company's primary focus because of its relationship with Frutarom and Jack Klein, and the next step was the release a new product, M18, which was similar to Blis K12, but prevented tooth decay.
The change in direction meant Blis management could focus on the core business rather than dealing with issues such as labelling and customers.
"With the capital raised, this gives us financial stability and enables us to focus on the business."
Dr Richardson said while prospects looked bright, the company still needed to more than double sales in order to break even.
However, they had started well, with New Zealand sales of Blis K12 for the past six months double that of the same time last year.
Growing sales in New Zealand and Australia were a priority, but Dr Richardson said there would also be a focus on the US and Asia, with plans to release between six and 10 new products in America in the coming year.
"Quite clearly, these are the markets where we will get results. The US market is essentially where the low-hanging fruit is at the moment."
Regulatory approval was being sought or completed in the US, Canada, Europe, China, South Korea, Indonesia, Malaysia and Taiwan.
Earlier, the company reported a $488,000 loss for the year to March 31, compared with a loss in the previous year of $617,000.
Revenue for that period was 31% higher at $1.1 million, while product sales were down 7% to $609,000, due to weaker sales in New Zealand and Australia.
Dr Richardson said while the focus was on developing the business, he was aware money still had to be invested in product development for the future.
The news inspired some investor confidence, with the share price rising 43% during the day, opening at 4.9c and closing at 7c.
