Tekcapital (TEK), an intellectual property investment group, announced that its portfolio company MicroSalt has expanded its US retail presence further with new placements in 51 Fine Fare stores, 8 Trade Fair stores, and 72 Big Y stores, through its partnership with US Salt.
MicroSalt is the developer and manufacturer of a proprietary low-sodium salt. Using a patented process of producing salt crystals, MicroSalt claims to achieve the same taste as regular table salt at half the sodium content. Tekcapital owns 97.2% of MicroSalt and 73% of its US subsidiary.
"We are proud of our partnership with US Salt to build product distribution as it underscores the retail need for full flavor, low-sodium products. Excess sodium consumption is one of the leading contributors to hypertension, and partnerships like this are the best way to provide consumers with great tasting products with less sodium" said Rick Guiney, CEO of MicroSalt.
Tekcapital shares gained 2.3% this morning on the news that MicroSalt is continuing its relentless expansion across the US, this time adding 131 stores in the Northeast. Fine Fair is a group of independently owned stores that are focused on the New York, New Jersey, and Pennsylvania markets. Trade Fair is a chain of 24/7 supermarkets in New York State. And Big Y is one of the largest independently owned supermarket chains on New England with 72 stores, and the second largest in Southern New England after Stop & Shop, with annual revenues of US$2.4bn.
MicroSalt was one of the top performers in Tekcapital's portfolio last year after launching its low sodium saltshakers to an increasing number of US supermarkets. MicroSalt's share value doubled during the period, and the company is targeting an IPO for H2 2023 via broker Zeus Capital.
What distinguishes MicroSalt's product is that it is not a substitute, but actual salt. The company's patented technology produces salt crystals that are 100 times smaller than normal table salt, so they deliver the same intensity of taste at 50% the sodium content. It is a potentially disruptive technology, and the company's aggressive rollout has proven the food industry is interested.
According to a recent report by Coherent Market Insights, the global sodium reduction ingredient market is projected to reach around US$2.2bn by end of 2027, growing at a CAGR of 12.2% between 2020-2027.
MicroSalt is in a good position to deal with increasing demand as Tekcapital raised £2m in April 2023, with £1m of that allocated to building an inventory for MicroSalt to satisfy forthcoming orders.
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