Coastal Integrated Services Inc. (COLV) Environmentally Sustainable, Innovative Lids Keep Consumers Coming Back for More

Coastal Integrated Services, via their wholly-owned Simply Lids, Inc. subsidiary, is focused on creating a no spill/splash drink experience for the food services industry via their patented disposable beverage lids that are also environmentally friendly. Emphasizing sustainability and recyclability alongside maximum gratification consumer experience, COLV is intent on maximizing their market share in this surprisingly low competition sector, where most disposable lid products require the consumer to sip carefully from a miniscule hole.

The patented Simply Lid design makes use of the Simply Slider™ mechanism to open and close both a sizeable drinking slot and the accompanying air intake holes, replicating the functionality of costly travel cups for the foodservice disposables market and providing a true, straight-from-the-cup drinking experience. The improved customer experience available with the Simply Lid is a solid attractor for retailers who dispense beverages and it can help foster customer loyalty. After all, there isn’t much sense in offering the finest coffees or other drinks if the actual act of consumption is not pleasurable or ends up ruining an expensive piece of clothing. With the Simply Lid, a vertically configured hole set at the base of a liquid reservoir prevents spills and splashes, making the act of drinking seem very natural. This patented design makes it seem like the cup has no lid at all, providing fluid beverage flow and the easily closed slider lets consumers even shake the beverage to mix it up, while also helping to prevent loss of coldness or heat. At the same time, the company’s lids are recyclable and utilize a much lower volume of plastic than many other lids on the market today, allowing retail customers to feel good about their purchase, further instilling customer loyalty and keeping them coming back for more.

The broader global foodservice disposables market for cups and lids was forecast to grow at a CAGR of around 5% in late 2013 by a Freedonia study that estimated world demand would reach $26 billion by 2017, driven in large part by mounting growth in the primary target market, the quick service restaurant industry. More recent analysis from Freedonia in mid-2014 places the U.S. cups and lids market alone on an even steeper incline, with projections of around $10 billion by 2018, as food packing cups used for snack foods like single serve pudding continue to steal increased market share from the historically dominant foodservice segment. Freedonia anticipates the strongest overall demand growth will come from lids moving forward, whose growth will markedly outpace that of cups, as segments like carryout lids used by restaurants and retail chains (think coffee shops) create a sweet spot in the specialty lid market, with more and more consumers buying beverages to be drunk either at a location other than where they were purchased, or on the go in their cars. Simply Lids are an ideal solution to drinking hot coffee behind the wheel and COLV isn’t content to rest on their laurels either, with constantly improving designs and customization options in the works.

The recent nomination of the company by VP of Innovation at global business supply chain managed services and consulting solutions specialists, Havi Global Solutions, for the Edison Award, which recognizes and honors innovative excellence in developing, marketing and launching new products and/or services, speaks volumes about how far ahead of the game Simply Lids designs are. The company is running circles around tired old designs by the likes of Dart Container Corp., which acquired its major rival, Solo Cup, for around $1 billion back in 2012, as well as other legacy producers. And unlike many of the smaller innovation-minded companies in the same field today, which are almost all private, Coastal Integrated Services is highly accessible to investors.

To learn more about Coastal Integrated Services, visit www.coastalintegratedservices.com or www.simplylids.com

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