Share this article

Californian firms Sweetheart Cup Company and EarthShell Corporation have signed a letter of intent providing the basis for Sweetheart to be the primary supplier of EarthShell Packaging® in the US.

Under the contemplated transaction environmentally-friendly packaging giant EarthShell would provide an exclusive royalty bearing license to Sweetheart for the first US$500m of annual sales of its sandwich containers, cups, plates and bowls for the US institutional and consumer markets.

Sweetheart, the largest manufacturer of single-use food service disposables in the US, intends to pursue the procurement of sufficient equipment designed to manufacture such sales.

Consistent with previously announced plans, EarthShell will cease the production of EarthShell Packaging sandwich containers in Owings Mills temporarily, until the new equipment lines are available.

“Over the past few years, we have become increasingly comfortable that market demand for EarthShell products is significant,” said Tom Uleau, COO of Sweetheart: “Product performance has satisfied EarthShell customers during extensive testing and initial commercial supply. The purchasing of a guaranteed turnkey manufacturing system from reliable vendors will provide an excellent opportunity to market EarthShell’s products.”