Perf Go Green Holdings Inc. (PGOG.OB) is a New York-based biodegradable plastics company. The company’s focus is on the development and global marketing of 100% eco-friendly, non-toxic, food-contact compliant, completely biodegradable plastic products. The company currently offers plastic trash and kitchen bags, dropcloths, and pet pick-up-after bags.
Perf Go Green uses recycled plastic bags combined with an oxy-biodegradable proprietary application method to produce the film for the biodegradable bags. This product, when discarded in soil in the presence of microorganisms, moisture and oxygen, decomposes into simple materials found in nature. PGOG Green Bags will completely breakdown in a landfill environment in 12-24 months, leaving no residue or harmful toxins. This is a vast improvement over traditional plastic bags, which are estimated to take 1,000 years to degrade.
The potential market for PGOG’s Green Bags is enormous. It is estimated that Americans throw away approximately 100 billion plastic bags a year, and globally there may be a trillion plastic bags used annually. If PGOG gained only a small percentage of this potential market, it would mean millions of dollars in revenues for the company.
There are several macro trends in Perf Go Green’s favor. First is the continuing rise in the price of oil. Since plastic is made from oil, the cost of manufacturing plastic bags is rising and companies are looking for cheaper alternatives. PGOG’s plastic bags are made from recycled plastic, so PGOG does not have to worry as much about the price of oil. Another trend is that major US retailers are going ‘green’. PGOG’s Green Bags are expected be sold, beginning in August, at major retailers such as Walmart, Walgreens, CVS Pharmacy, Amazon.com, and Drugstore.com.
Governments are also attempting to go ‘green’, as evidenced by the city of San Francisco banning the use of all traditional plastic grocery bags. China is actually leading the way in this trend and is in the process of moving from plastic grocery bags to other alternatives. This would, of course, open incredible opportunities for Perf Go Green Holdings.
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