The Precious Commodity of Trust is now Officially Trading.
During the post-2008 economic correction, one of the local investment bankers on Bay Street, confessed to me that his firm had hired a gentleman for professional guidance who had just secured his PhD in Trust.
“Let me get this right” I started. “To bring in clients — you had to identify someone who has secured a PhD in ‘Trust’ to train your investment bankers?”
To make a long story short, Dr Trust was communicating that we should all interact with authenticity. Simple most of us would think? Not so it seems, as every other analyst and journalist explains how trust is not only elusive in our society, but indeed a valuable commodity.
So, when an Alberta-based company introduced to me from a respected peer called TrustBix Inc. (TSXV: TBIX) explained their model evolved around ‘trust’, I listened. In fact, it occurred to me as they communicated their business model that perhaps they may have just hit the proverbial Holy Grail for the investment market nail on the head.
Enter stage right.
From “gate to plate”, this innovative leader promises us all that we will indeed be able to trust our food. Finally, I thought, a break from the politics, this agri-food traceability and chain of custody value solutions company has people all agreeing on one thing we all agree on — that food matters.
Not one to fall in love easily, TrustBIX is backing their trust formula with numbers. According to their recent Third Quarter Financial Results released on August 20th “The Company posted record revenue of $504,128 for the third quarter, up 43.5% from 2020, and $1,677,615 for the nine-month period, up 53.8% compared to 2020.”
The point? It seems TrustBIX understands the value of trust requires words backed by actions.
This Company’s well-written goal is to “create a world where we trust more, waste less and reward sustainable behaviour by addressing consumer and agri-food business demands. The proprietary platform, BIX (Business InfoXchange System), is designed to create trust without compromising privacy through innovative, blockchain-derived use of technology and data. By leveraging BIX and its unique use of incentive solutions, TrustBIX delivers independent validation of food provenance and sustainable production practices within the supply chain – Gate to Plate®.”
Basically, TrustBIX provides chain-of-custody solutions that allow food processors, retailers, and consumers to have confidence that the claims made around important food attributes are true. By validating the chain of custody all parties will be able to trust the claims made about the food and the natural premium price paid.
TrustBIX provides information services via the BIX platform to Cargill as part of their ongoing sustainable-sourcing program for their customers like McDonald’s Canada. Because of this program, Canada is the world’s first country to have a certified sustainable beef supply chain. The BIX platform has over 1,500 producers registered and who track cattle as part of Strategic Sourcing through Cargill for McDonald’s Canada and other restaurants. Since 2014, over 6 million animals worth an estimated $21 billion at retail have been tracked in the system.
While Cargill is an important supplier, TrustBIX states that they have “hundreds of other customers using our software in their cattle feedlot and auction market operations, and estimate we have an 80% and 30% share respectively in the Canadian and US Live Cattle Auction Market software automation space.”
By extension, this market recognition and the company’s commitment to innovation has led to other opportunities. TrustBIX has also expanded into the pork business and the company has customers in Canada, Mexico, and China, including the WH Group, the world’s largest pork processor utilizing their pork grading probes.
The company has a business model to generate revenue from four segments as shown below:
Source: Company presentation
Leading in hardware and software and their other two segments are and will be logical extensions of their current business. Toss in the numbers, the technology with patents that allow us to chew and swallow our food with greater confidence and we may have just identified something that not only will rise in value, but that we could all use a helluva lot more of — and that commodity is trust.
Tracy Weslosky is the founder and CEO for InvestorIntel Corp. (2001-Present), a leading online source of investor information that since 2001 has provided public market ... <Read more about Tracy Weslosky>