Internet of Things innovator expands further into food retail market

Internet of Things innovator expands further into food retail market

Micro e-paper display and software provider Danavation Technologies Corp. further expanding into the food retail market with its digital smart labels.


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

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

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

“Both retailers will benefit from the reduction in time spent on tedious labeling tasks, which will positively impact the operational efficiency and financial performance of each location,” said John Ricci, managing director of Danavation. “We are also excited about the prospect of potentially expanding our relationship with Nature’s Emporium to secure additional installations at the remaining six locations in the future.”

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

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

“We believe technology should make life easier, not more complicated,” Ricci said.

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

“While it is already in widespread use in Europe, this is not the case in the US, and with inflation picking up steam and trending in the direction of hyperinflation, the need to roll out this technology in stores nationwide in the US is becoming urgent,” Maund wrote. “With the company’s already tried and tested automatic price update system, it is very likely that it will soon receive orders for its system from at least one major retailer. This is truly a company that will benefit from the effects of hyperinflation.”

Maund noted last December that he recognized that “low-priced tech-type stocks” wouldn’t appeal to everyone, “but those of you who are interested should look to buy immediately.”

The catalyst: up to seven stores

The company is setting up the first of 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 expects to benefit from being able to redirect staff efforts from manual on-shelf price updates to engaging with customers and improving the overall shopping experience, Danavation said in a statement.

According to a report by Mordor Intelligence, the IoT market is expected to register a CAGR of 10.53% during the forecast period (2022-2027).

The company can also instantly update products and prices for more frequent specials and promotions.

Nature’s Emporium is a health foods marketplace with four locations in Ontario with two more opening later this year. It specializes in natural and organic foods, vitamins, supplements, gluten-free offerings, housewares, and eco-friendly clothing.

Both 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 charcuterie, produce, deli, baked goods and prepared foods. The first location is expected to be equipped with the system by mid to late summer 2023, followed by the second.

Growing sector at a “rapid rate”

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

The company has showcased its solution to resellers across North America, including True Value and Ace Hardware. He also said it is targeting new markets, including healthcare providers, manufacturing and logistics companies.

The labels offer high resolution display, high contrast, wide visibility and vibrant colors for price labels. The displays, which allow for both text and graphics, are housed in a durable and tough polycarbonate housing.

Such Internet of Things (IoT) devices appear to be poised for growth. According to a report by 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 viewed IoT as the key enabler to boost digital transformation and unlock operational efficiencies,” the report said.

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

“Retail automation is gaining traction and expanding at a rapid pace,” 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 market players,” wrote Allied Market Research.

Ownership and shareholding structure

Management holds approximately 36% of the share base. The company reports no institutional owners.

Strategic Investor T. Sean Harvey owns 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 capitalization of approximately CA$18.8 million with approximately 120.8 million shares outstanding. It trades in a 52-week range of CA$0.32 and CA$0.13.

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Important information:

  1. Danavation Technologies Corp. is an affiliate of has an advisory relationship with Streetwise Reports and paid an advisory fee of between US$8,000 and US$20,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including their family members) own securities in Danavation Technologies Corp.
  3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  4. The article does not constitute investment advice. Each reader is encouraged to consult their individual financial professional. By opening this page, each reader accepts and agrees to the Streetwise Reports terms of use and full legal disclaimer. This article is not an investment solicitation. Streetwise Reports does not provide general or specific investment advice and information in Streetwise Reports should not be relied upon as a recommendation to buy or sell any securities. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned in Streetwise Reports.

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