Sweetheart Cup and EarthShell sign agreement
EarthShell have signed a letter of intent naming Sweetheart the
primary North American supplier of EarthShell Packaging.
Single-use food service disposables manufacturer Sweetheart Cup and EarthShell have signed a letter of intent naming Sweetheart the primary North American supplier of EarthShell Packaging.
EarthShell, which is based in Maryland, would provide an exclusive licence to Sweetheart, based in California, for the first $500 million (€541m) of annual sales of EarthShell's sandwich containers, cups, plates and bowls for the US institutional and consumer markets.
"Over the past few years, we have [recognised] that market demand for EarthShell products is significant," said Tom Uleau, chief operating officer of Sweetheart. "Product performance has satisfied EarthShell customers during extensive testing and initial commercial supply."
Sweetheart intends to procure equipment to accommodate such sales. Leading North American machinery manufacturers have expressed a willingness to build the necessary equipment under contracts that would provide performance and quality guarantees.
"The purchasing of a guaranteed turnkey manufacturing system from reliable vendors will provide an excellent opportunity to market EarthShell's products," said Uleau.
EarthShell stopped the production of EarthShell sandwich containers at its plant in Owings Mills on 17 May. The production of hinged-lid sandwich containers will be temporarily discontinued until the new equipment lines are available.