US manufacturer of single-use food service disposables Sweetheart Cup has signed a licensing agreement with packaging company EarthShell Corporation.
Under terms of the agreement, Sweetheart will receive an exclusive licence for the manufacture and sale of EarthShell products to key market segments in North America.
Sweetheart will become the primary supplier of EarthShell Packaging plates, bowls, cups and hinged-lid sandwich containers in North America. The agreement is for an initial ten-year period. Sales are planned to begin in the third quarter of next year, and Sweetheart has agreed to incremental performance goals for sales over the first five years growing to $500 million (€509m) annually.
According to a statement this week, Sweetheart intends to purchase and own the capital equipment necessary to produce plates, bowls and cups for the general market and hinged-lid sandwich containers for a variety of major market segments, to include quick service restaurants, convenience stores, food & food service distributors and contract management companies.
The agreement is on condition that Sweetheart places initial equipment orders by the end of the month, for delivery during the second quarter of 2003.
"Sweetheart believes that this is one of the most significant developments in the food service packaging industry in years," said Thomas Uleau, chief operating officer of Sweetheart. "EarthShell Packaging offers customers competitively priced, high-performing disposables with significant environmental advantages."
"Sweetheart's sales and distribution prowess will provide EarthShell Packaging a perfect opportunity for rapid penetration into a variety of important and strategic food service market segments," said Vincent J. Truant, president and chief operating officer of EarthShell Corporation.