Kiwi light bulb maker lands deal with major US retailer

By Stephen Gillam

Chris Mardon says Energy Mad has secured funding from US electrical utilities. Photo / Dean Purcell
Chris Mardon says Energy Mad has secured funding from US electrical utilities. Photo / Dean Purcell

Kiwi light bulb manufacturer Energy Mad has received a boost for its business in the United States, securing a deal with a leading retailer.

The company's Ecobulb lightbulbs will be available in dedicated display cases in Walgreens stores for the rest of the year.

Walgreens is one of the largest retailers in the US and will display the bulbs, sold in that country as Ecospirals, in 1350 stores around the country.

Managing director Chris Mardon said Energy Mad has secured funding from 28 electric utilities in the US worth a total of $1.5 million, which will allow them to sell their bulbs at a heavily discounted rate.

For example, a pack of three 15-watt bulbs that would usually retail for US$10.99 ($14) can now be sold for US$3.99, he said.

The lower pricing, combined with the dedicated displays, was expected to heighten consumer awareness of Energy Mad products and increase sales.

Trade and Enterprise, the Government's export development agency, is covering 50 per cent of the display costs.

Mardon said he was excited about Energy Mad's potential for growth and this was part of a series of building blocks for the company.

"This is a major milestone for us to have this display," Mardon said.

The bulbs have a 15,000-hour life, compared with a similar product featured on the Walgreens website with an 8000-hour life.

Energy Mad last week reported a $120,000 profit for the first quarter of the 2014 financial year, after operating at a loss for the 2013 year. Cost reductions were one of the main drivers of the improved performance.

Energy Mad shares were unchanged at 34c in late trade.

- NZ Herald

© Copyright 2014, APN New Zealand Limited

Assembled by: (static) on production bpcf01 at 31 Oct 2014 07:36:13 Processing Time: 402ms