Ecolab Rolls Out AFVT - Analyst Blog
May 17 2013 - 7:20AM
Zacks
Ecolab Inc. (ECL), a leading manufacturer of
cleaning and sanitation products, rolled out its latest
institutional food safety product, Antimicrobial Fruit and
Vegetable Treatment (AFVT).
The AFVT is registered with the
Environmental Protection Agency (EPA) as an antimicrobial product.
The Food and Drug Administration (FDA) has also cleared it to
remove germs in raw as well as further processed fruits and
vegetables.
According to a U.S. Centers for
Disease Control and Prevention (CDC) study, consumption of
contaminated leafy vegetables, particularly lettuce, affects the
health of about 2.2 million people. This corresponds to about 23%
of the 9.6 million people who suffer from food borne illnesses
every year.
Ecolab’s management asserts that
the new AFVT product works in just 90 seconds with no rinse
required. The easy-to-use, low cost product can effectively remove
pathogens in large food establishments, thereby enhancing
institutional food safety and cleanliness. However, it may not be
used in commercial food processing facilities or for produce
available at grocery stores.
St. Paul, Minn.-based Ecolab
serves the foodservice, food and beverage processing, healthcare
and hospitality markets in the U.S. and abroad. We are encouraged
by the company’s consistent performance of delivering double-digit
earnings growth despite the challenging business environment.
Ecolab remains focused on bringing new technologies into the
market. Moreover, the company is aggressively pursuing acquisitions
to expand into emerging markets for growth.
Although we are impressed by
Ecolab’s strong international exposure, we remain cautious about
aggressive competition. Challenging economic and market trends in
2013 together with unfavorable internal issues will likely be
near-term headwinds for the company. Raw material price inflation
also remains a cause of concern.
Ecolab currently has a Zacks Rank
#3 (Hold). Other chemical-specialty companies such as
American Pacific Corporation (APFC),
American Vanguard Corp. (AVD) and Minerals
Technologies Inc. (MTX) warrant a look. APFC and AVD carry
a Zacks Rank #1 (Strong Buy), while MTX carries a Zacks Rank #2
(Buy).
AMER PAC CORP (APFC): Get Free Report
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