Starbucks straw supplier change dings Danimer results

In Georgia, polyhydroxyalkanoate bioplastics maker Danimer Scientific has reported second quarter sales of $7.6 million, down by $5.3 million compared to revenue of $12.9 million in the second quarter of 2023. Nodax-brand PHA revenue of $5.9 million decreased by $2.5 million in the quarter as compared with the prior year quarter, primarily due to the reapportionment of Starbucks’ straw business which led to excess inventory in the channel with the company’s converter partners. Polylactic acid revenue of $1.4 million decreased by $2.4 million quarter-over-quarter, primarily due to a loss of orders from customers affected by the conflict in Ukraine.

 “We completed the second quarter in line with our expectations considering the temporary impact of Starbucks’ reapportionment of their Nodax-based straw business between our converter partners,” Stephen E. Croskrey, CEO of Danimer, said in a press statement. “We believe these headwinds will continue into the third quarter, but at a lesser degree than experienced during the second quarter. It is important to reiterate that we have retained 100% of this business, and we remain on track to continue to grow our PHA business during 2024.”

A 20-million-pound cutlery award also continues to progress. “Our converter partners have received initial molds for testing, and some have purchased new injection molding equipment,” Croskrey said. “To date, we have received four commercial orders, with one order having been delivered and the others expected to ship by the end of this month. We expect this award to reach full run rate in mid-2025.”