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Internet-of-Things Innovator Expands Further Into Retail Food Market

Source: Streetwise Reports


June 1, 2023 ( Newswire) Micro e-paper display and software provider Danavation Technologies Corp. expanding further into the retail food market with its Digital Smart Labels™.

Micro e-paper display and software provider Danavation Technologies Corp. (DVN:CSE; DVNCF:OTCQB) announced it is further expanding into the retail food market with two new contracts for its Digital Smart Labels™.

Three installations are due to be completed by the end of summer at two locations of Greco's Fresh Market and a Nature's Emporium location, all in Ontario.

Additional installations at six Nature's Emporium locations are possible, Danavation said.

"Both retailers will benefit from reduced time spent on tedious labeling tasks, positively impacting operational efficiencies as well as the financial performance of each location," Danavation Chief Executive Officer John Ricci said. "We are also excited about the prospect of potentially expanding our relationship with Nature's Emporium to secure further installations into their remaining six locations in the future."

Digital Smart Labels™ enable companies to automate labeling and price and product promotions in real-time, significantly reducing paper usage in the process.

"We believe that technology should make life easier, not more complicated," Ricci has said.

The system's main attraction is that it automatically updates the prices of merchandise on the shelves, said technical analyst Clive Maund of

"Although already in widespread use in Europe, this is not the case in the U.S., and with inflation having taken hold and trending in the direction of hyperinflation, the need to implement this technology in stores nationwide across the U.S. is becoming urgent," Maund wrote. "With the company's automatic price updating system already tried and tested, it is highly likely that it will receive orders for its system from at least one big retailer soon. This is truly a company that will benefit from the effects of hyperinflation."

Maund noted last December that he recognized the "low-priced tech-type" stock would not appeal to everyone, "but those of you who are interested should look to buy immediately."

The Catalyst: Up to Seven Stores

The company is outfitting the first of up to seven Nature's Emporium locations in Ontario, building on previous installations with brands such as Sobeys, Cataldi, Palma Pasta, Coleman Food, and Rabba.

The first location is expected to be online by the end of the summer and could lead to six more locations adopting the technology.

The store anticipates benefitting from being able to redirect staffing efforts from manual price updates at the shelf to engaging with customers and enhancing the overall shopping experience, Danavation said in a release.

The company can also instantaneously update products and pricing for more frequent specials and promotions.

Nature's Emporium is a health food market with four locations in Ontario and two more opening before the end of the year. It specializes in natural and organic foods, vitamins, supplements, gluten-free offerings, home supplies, and eco-friendly clothing.

Both of Greco's Fresh Market locations in Thornhill and Richmond Hill, Ontario, will be set up to use Digital Smart Labels™.

The stores offer a wide selection of high-quality meats, produce, deli, bakery, and prepared foods. The first location is expected to be outfitted with the system by mid- to late-summer 2023, followed by the second.

Sector Expanding at 'Rapid Rate'

Digital Smart Labels™ are powered by proprietary automation technology and an underlying Platform-as-a-Service (PaaS) model. The company said using the technology enhances data accuracy and improves performance by optimizing inventory and removing the high labor costs and low productivity traditionally associated with labor-intensive merchandising workflows.

The company has introduced its solution to retailers across North America, including True Value and Ace Hardware. It also said it's targeting new markets, including healthcare providers, manufacturing, and logistics companies.

The labels offer high-resolution, high contrast, wide viewability, and vibrant color displays for price labels. The displays, which allow for both text and graphics, are housed in durable and strong polycarbonate housing.

Such Internet of Things (IoT) devices appear to be poised for growth. According to a report from Mordor Intelligence, the IoT market is expected to register a CAGR of 10.53% during the forecast period (2022-2027).

"Enterprises and service providers have been looking at IoT as the key enabler to augment digital transformation and unlock operational efficiencies," the report said.

The global retail automation market — which also includes electronic shelf labels — was valued at nearly US$15 billion in 2021 and is predicted to reach US$34.5 billion by 2030 with a compound annual growth rate (CAGR) of 9.8%, according to a report by Straits Research.

"Retail automation is gaining high traction and expanding at a rapid rate," the report said. "The need to provide exquisite shopping experiences that can help retailers increase customer retention is fueling the need to adapt to ongoing digitalization strategies such as automation."

Automation can "reshape retail business models and provide value chain opportunities for players operating in the market," Allied Market Research wrote.

Ownership and Share Structure

Management owns roughly 36% of the share base. The company reports no institutional owners.

Strategic investor T. Sean Harvey holds 11% or 13.31 million shares, Independent Director Vivek Jain owns 0.13% or 150,000 shares, and Independent Director Michael Della Fortuna owns 0.02% or 30,000 shares, according to Reuters.

Danavation has a market cap of about CA$18.8 million with about 120.8 million shares outstanding. It trades in a 52-week range of CA$0.32 and CA$0.13.

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