U.S. Legislative Climate Creating Opportunities for Bioplastics Industry

Cereplast to supply resin for manufacture of food serviceware and compostable trash bags

SEYMOUR, Indiana, Nov. 5, 2013 — Cereplast, Inc. (OTCQB: CERP) (the “Company”), a leading manufacturer of proprietary biobased, compostable and sustainable bioplastics, today is providing an update on the legislative climate in the United States and the potential opportunities it is creating for the bioplastics industry. Regional and federal laws could create $180 million in annual bioplastics industry revenue, of which Cereplast expect to pick up several million in 2014 and beyond to supply resin used for the manufacture of food serviceware and compostable trash bags.

The Federal Trade Commission (FTC) recently announced several enforcement actions against plastics companies for not complying with the FTC Green Guides. This marks the first time the agency is addressing biodegradable plastic claims. The enforcement actions relate specifically to companies making unsupported and allegedly false claims that additives make their conventional plastics biodegradable. Countries around the world are taking a stand against these types of additives since, unlike compostable bioplastics, they cannot be verified by any standard specification. On the other hand, internationally established and acknowledged standards exist to substantiate claims regarding the biodegradability/compostability of bioplastics. The absence of these types of additives in the marketplace would be a win for the bioplastics industry.

Additionally, cities across the United States are taking steps toward developing composting infrastructures, with San Francisco and Portland as pioneers in this movement. More recently, in New York City, Mayor Michael R. Bloomberg is taking steps to implement a composting program in an effort to reduce waste in the city. With the expanse of composting infrastructures around the country, the demand for bioplastics is growing. Certified compostable bioplastics will biodegrade within 180 days or less, making them the perfect solution for single-use disposable food service ware. Carry- out containers, utensils, cups and straws made from compostable bioplastics can be disposed of with food waste in industrial composting facilities, significantly reducing the amount of food waste and plastic waste that winds up in landfills.

Chairman and CEO of Cereplast Mr. Frederic Scheer commented, “We are extremely pleased to see the FTC taking a stance against false marketing claims that harm the bioplastics industry. We are also pleased to see cities such as New York moving toward composting their waste. This is a tremendous opportunity for the Company, and we are aggressively targeting sales developments in the region.”

About Cereplast, Inc.
Cereplast, Inc. (OTCQB:CERP) designs and manufactures proprietary biobased, sustainable bioplastics which are used as substitutes for traditional plastics in all major converting processes – such as injection molding, thermoforming, blow molding and extrusions – at a pricing structure that is competitive with traditional plastics. On the cutting-edge of biobased plastic material development, Cereplast now offers resins to meet a variety of customer demands. Cereplast Compostables® resins are ideally suited for single-use applications where high biobased content and compostability are advantageous, especially in the food service industry. Cereplast Sustainables® resins combine high biobased content with the durability and endurance of traditional plastic, making them ideal for applications in industries such as automotive, consumer electronics and packaging.


Cereplast, Inc., press release, 2013-11-05.


Cereplast Inc.
Federal Trade Commission


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