Food Bacteria Is Still Killing People At An Alarming Rate, Here’s One Tech Company That Can Help

Back in 2012 three SFU students were cooking up a food logistics business that unbeknownst to them would one day be a public company with top-tier clients like Walmart (WMT.N), Save-On-Foods, SPUD.CA, BC Ferries, The Canadian Blood Services and more.

Headed by chemical engineer Kris Malek, the once small startup recently became the publicly traded company now known as Trackloop (TOOL.C), which is currently valued at a $4 million dollar market cap.

The reason Trackloop makes sense in 2018 is that the food logistics system is still broken.

In the US alone 40% of food is wasted, one of the key contributing factors to this is logistics. ie: people not embracing the 100-mile diet and wanting food from around the world, in and out of season.

The process of getting people those products has proven to be very messy, and this is where Kris and his team have found a massive gap to fill.

The problem has gotten even worse as people have adopted healthier lifestyles as diets like keto, paleo and the 23&me style ancestor diet have spawned an even greater need to get the highest quality food shipped from around the globe.

 

Food Contamination

In 2011, the CDC reported that 48 million illnesses, 128,000 hospitalizations and 3,000 deaths occur every year in the U.S. as a direct result of foodborne organisms.

Contamination risks exist at every point in the supply chain from production to transportation, to processing, to storage, manufacturing, and distribution. Because of the staggering complexity of our modern food supply, it is virtually impossible to police each and every risk point.

The FDA considers food to be chemically contaminated when it contains chemicals that may make it harmful to the health of the consumer. There are many chemicals that could potentially cause contamination of the food supply chain.

The FDA conducts monitoring programs for seven chemicals and chemical classes commonly found in food supplies: Acrylamide, Dioxins and PCBs, Ethyl Carbamate, Furan, Melamine, Perchlorate and Radionuclides. Many of these contaminations result from accidental food contact.

More than 90 percent of the cases of food poisoning each year are caused by Staphylococcus aureus, Salmonella, Clostridium perfringens, Campylobacter, Listeria monocytogenes, Vibrio parahaemolyticus, Bacillus cereus, and Entero-pathogenic Escherichia coli.

With Trackloop’s software a bacteria outbreak can be detected on the supply chain before much of the damage occurs. This is one of the more effective ways this issue can be mitigated.

 

Cannabis Has the Same Problem

Food logistics has been the biggest pillar in Trackloop’s business model, however, they are now bullish on going after the cannabis and pharmaceutical industries as they face a very similar problem.

The market has invested billions into the cannabis sector, that same market hasn’t yet thought about how the product moves from one point to the next which has proven to be a growing issue, especially in warmer places like California and Florida. Just like food, cannabis needs to kept in certain temperature regulated environments.

“Cannabis industry many of the companies still rely on paper and faxes as a method of documentation, while the majority of ERP systems don’t integrate; ChainTrack’s platform solves this problem which presents significant cost savings and efficiencies to the supply chain and expands a client’s existing product offering of financial analytics solutions.” Zayn Kalyan, TrackLoop CTO

The door is wide open for Trackloop to take a major position in the cannabis industry, and judging by management’s recent comments, it looks as though the company is actively looking for partnerships in the space.

TOOL.C Stock Info

Judging by Trackloop’s very low price/sales and price/book ratios, this company is extremely undervalued right now. 

 

 

 

For more info on Trackloop, register here.

 

Disclaimer: Trackloop is a paid client of High Energy Trading, click here to read full disclosure.

High Energy Trading is not a licensed broker-dealer, market maker, investment advisor, or underwriter. All information that we provide is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities.

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