Ashley EvansJames Jordan

Sierra LawChris Wiebe

Jasmine Kurywczak

Agenda

1. Introduction2. Getting to Know: Mango Material3. External Environment4. Internal Environment5. Analysis of the Industry6. Mango Materials Issues: Company and Industry Wide7. Possible Solutions to Issues8. Ideas for the Future Direction

Introduction

The "Green" Movement"The future will be green or not at all. This truth lies at the heart of humankind's most pressing challenge: to learn to live in harmony with the Earth on a truly sustainable basis"- Sir Jonathon Porritt, Economist

The "Green Product": BioPlastics• Definition: Plastic derived from a plant based source, such as corn starch or

vegetable oilo An alternative to petroleum-based fossil fuels

BioPlastics Viability• 90% of plastics can be replaced with BioPlastics

o US plastics industry currently grosses $379 billion annually• BioPlastics is expected to take 30% of the US plastics market share by 2025

Meet the Founder • Molly Morse, PhD, CEO –

Grad/PhD student of Stanford in Civil and Environmental Engineering

• Clean tech consultant o Mayfield Funds

• Started Mango Materials based off research in bio-composites and bio-plastics

Meet the Contributors

• The team: Also includes Bill Shelander- Business Development, 20 years venture capital experience

• Cleantech Open Mentorso Andra Pligavkoo David Rummlero Nabeel Hasnain

• Advisory Board:o Sarah Billingtono Craig Criddle

Technology

• Process = “Cradle to Cradle”o Methane --> Microbial Process --> BioPolymer --

> Products --> Modern Landfill or Digester --> Methane  Requires minimal inputs and the byproducts are

recycled back into the patented production process Taking gas and making PHA pellets

Uses: structural plastics (toys, packaging, water bottles, etc)vs functional plastics (cosmetics)

Mango’s Patent-Protected Process

Current Economy

Socio-Cultural

• Traditional and Social Media arespreading the word “Green is in”• People are voting with their dollar for

compostable and renewable products!• Disasters like the BP oil spill are only

exacerbating consumers to cry out for renewable technologies.• People are getting vocal,

“hey pick that up!”

Political/Legal

“Going Green”  

• Receiving support on a political level• In mid 2009 the San Francisco Board of Supervisors

approved a measure to improve upon the existing waste management policies.o Residents are now held accountable for improper

disposal of compostable, recyclable, and landfill-destined waste.

Suppliers

• Agricultural: Released from farming• Municipal: Sewage waste/ landfills• Industrial: Bi-product• Stranded: Methane Fields

Competitors

Five Forces Model

• Threats of New Entrantso Medium to High

• Bargaining Power of Supplierso Medium

• Bargaining Power of Buyerso High

• Threats of Substitutable Productso Low

• Rivalry Among Competing Firms

o Low

Bio-plastics Industry

• Petro-plastics• Bio-plastics

o Cereplasto Metabolixo Natureworkso DuPonto Tianan Biologicso BioCycleo Biomer

• Spargers• Fermenters• Bio-Reactors• Extractors• Methane

o Agriculturalo Industrialo Municipalo Stranded

Structural Plastics• Agriculture• Building• Electrical• Furniture• Materials Handling• Packaging• Transport

Functional Plastics• Medical• Pharmaceutical • Paints• Cosmetics• Detergents• Toys

• Additives -• Digesters

o Wet anaerobico Dry anaerobic

• Engineering, Construction & Project Management Services

The Internal Environment

• Resources (tangible and intangible)o A patented processo Intelligence of Staff 

• Core Competencies o Developed a patented process to produce PHB from

methane-consuming bacteria, a process that is much less capital intensive and has significantly lower operating costs

Consumers

Consumers: • Plastic converters who extrude, mold, and

form plastic to produce materials such as bottles, toys, plastic packaging, electric casing, and filmsoRubbermaid, Green Toys, Steelcase,

Cereplast

Strengths

• Produces PHB, requires just 57-77% of the energy required for the production of petroleum-based plastics 

• Company uses methane as the feedstock instead of glucose and sucrose, which saves the company 30%o Price is comparable to that of petroleum-based

products, and half the price of other biodegradable plastics

• Higher ROI than other methane useso Such as: to power vehicles or heat/power buildings 

Weaknesses

• Have not yet been able to demonstrate pilot scale production capability

Threats• Plastics Industry on the whole, an unsustainable

industry.

• Greater transparency regarding environmental degradation due to non bio-degradable plastics

• Bio-plastics made from sugars sourced from grain and sugarcane, are in direct competition with world food supplies.

• Petroleum-based products are currently the cheapest and most widely used.

Opportunities

• Bio-plastics industry-o Undercut Petroleum Market

• Horizontal Integrationo Complementary Operations 

ie. Digesters, construction, engineering etc.• Backward Vertical Integration

o Securing future methane supply• Forward Vertical Integration

o Toys, packaging, closing the loop

• Positive Impacton the environment• Best of both worlds

• Lower cost than thosecompeting w/bio and petro-plastic.

Opportunities

Problems:

• Need to Enter Marketo Technicalo Costo Product Acceptance

Technical Solution

• Financing: Get Out of Labo Loan, Grant, Venture Capitalisto Trade Shows

Clean Tech Openo Department of Agriculture Bio-Preffered Program

Cost Solution

• Contact High-End, Specialized Producers • Promote Tax Incentives

o Federal Research and Development Tax Credit "Encourages U.S.-based manufacturers to innovate and invest

back into their businesses in order to compete more effectively on a global basis”

Product Acceptance Solution

• Offer a Free Sample Once they are able to produce at a larger capacityo Children Toys, Construction, Packaging, etc.o Currently many companies want samples of Mango's product

7 liter reactor doesn't allow them the capacity

The End

Any Questions?

**All Information came from the material that was given to us by professor**