My guest today is Sage Berryman, CEO of Aluula Composites (TSXV: AUUA). Aluula is focused on revolutionizing material science. Founded in 2019, the company has developed a patented process for producing ultra-high molecular weight polyethylene (UHMWPE) composites without glues—fusing at the molecular level to create materials that are lighter, stronger, more durable, and fully recyclable. This “mono-material” design also enables circularity and addresses the growing demand for PFAS-free solutions.
The company first gained traction in windsports through its Ocean Rodeo subsidiary, but following a 2023 RTO and a 2024 strategic refocus under Sage’s leadership, Alula divested Ocean Rodeo to concentrate on becoming an ingredient brand. Today, Aluula is targeting both premium outdoor markets—packs, tents, wind sports—and larger commercial and industrial applications, where strength, durability, and recyclability are key.
Aluula will be presenting at our conference in Toronto, the Planet MicroCap Showcase on October 21-23, and I invited her on to discuss:
The science behind Aluula’s glue-free composites
Strategic pivot from Ocean Rodeo to ingredient branding
Long but improving sales cycles for adoption
Differentiation from commodity materials like polyester and nylon
Expansion plans into higher-volume industrial applications
Financial discipline, with recent margins of 40–45%
For more information about Aluula Composites, please visit: https://aluula.com/
Watch on YouTube:
Summary:
I. Executive Summary
Aluula Composites is a publicly traded company revolutionizing material science by combining high performance and sustainability in a single product. Founded in 2019, Aluula has developed a patented glue-free fusing process that enables the creation of multi-layer composites made from ultra-high molecular weight polyethylene (UHMWPE). These materials are significantly stronger, lighter, and more durable than conventional alternatives.
Aluula’s unique mono-material design also allows for full recyclability—offering PFAS-free and circular solutions across diverse industries. Following a 2023 reverse takeover (RTO) and a major strategic refocus in 2024 under CEO Sage Bryman, Aluula is now positioned for aggressive growth, targeting both premium performance markets and high-volume commercial applications.
II. Key Themes and Insights
A. Core Innovation and Differentiation
“Revolutionizing the material science space where you can combine high performance and sustainability in the same product.” – Sage Bryman
Patented Glue-Free Fusing Process:
Aluula’s breakthrough lies in its ability to fuse multi-layer composites at a molecular level without adhesives. This eliminates degradation associated with glues and produces cleaner, more durable bonds.Superior Strength and Lightness:
The glue-free process results in composites that are stronger, lighter, and more durable than traditional glued materials (e.g., DaNeeA).Mono-Material & Fully Recyclable:
Because Aluula products are made entirely from polyethylene, they can be fully recycled at end of life—an essential feature as industries seek PFAS-free, circular materials.Weldable Construction:
Unlike most fabrics that require stitching or taping, Aluula materials can be welded, offering improved waterproofing, strength, and reduced weight—ideal for high-performance gear.Customization:
The technology allows tuning of UHMWPE strength and layering to meet specific needs—ranging from stiffness to ultra-light waterproofing and gas retention.
B. Company History and Strategic Refocus
Founded in 2019: Created by two wind-sport enthusiasts—one a chemist, one an entrepreneur—seeking stronger, lighter materials for kites and wings.
Early Validation: Initially commercialized through Ocean Rodeo, where the material proved its superior performance in demanding wind-sport environments.
Public Listing (RTO, 2023): Aluula became public through a reverse takeover.
Strategic Refocus (2024): Under CEO Sage Bryman, the company streamlined and reoriented its strategy:
Stabilized operations and clarified the core value proposition.
Divested Ocean Rodeo to avoid conflicts with customer brands.
Built a strong executive team and transitioned from reactive (“inbound”) sales to a proactive global outreach strategy.
Intellectual Property Estate: Robust IP portfolio of patents and trade secrets protecting both material formulation and construction techniques.
C. Market Strategy and Target Customers
Ingredient Brand Model:
Aluula functions as a B2B ingredient brand, co-branding with partners (e.g., Arc’teryx) that integrate its materials into premium products.Premium Product, Premium Price:
Positioned at the top end of performance materials, commanding premium pricing justified by unique strength, sustainability, and recyclability.Diversified Market Focus:
Performance Outdoor (Consumer-Facing): Packs, tents, wind sports, and sailing products—key for brand visibility.
Commercial & Industrial (High-Volume): Larger, higher-growth markets such as wind power and marine cargo applications, where UV and saltwater resistance drive adoption.
Sales Cycle:
Typically two years, progressing from sample testing to commercialization. Early adopters like Arc’teryx faced longer cycles, but future integrations are expected to accelerate.
D. Competitive Landscape
Main Competitor: DaNeeA (owned by Aviant) – leading UHMWPE supplier for outdoor and ballistic markets.
Other Competitors: Honeywell (body armor) and traditional fabrics (Dacron, polyester, nylon).
Aluula’s Advantage: Offers a high-performance, PFAS-free, recyclable alternative unmatched by commodity producers.
E. Financials and Growth Outlook
Q2 2024 Results: Reported revenue growth with gross margins between 40–45%, reflecting operational improvement.
Focus on Margin Discipline: CEO Bryman stresses growth with operational rigor, maintaining sustainable OpEx levels.
Growth Outlook (2025+):
“Right product, right time” for industries demanding sustainable, waterproof, PFAS-free materials.
Aggressive growth trajectory expected as commercialization scales.
3–5 Year Vision:
Expand manufacturing to meet demand.
Deepen market penetration across consumer and industrial segments.
Reach profitability through a mix of premium pricing and volume expansion.
F. Key Challenges and Risks
Lack of Financial Guidance: Makes forecasting difficult for investors.
Product Aesthetics: The distinctive “crinkly” texture differs from traditional nylons, occasionally requiring customer education.
Competing with Industry Giants: With ~$6M in annual revenue, Aluula competes against massive incumbents, requiring strategic positioning.
Customer Learning Curve: Welding-based construction methods require new manufacturing expertise.
Macroeconomic Uncertainty: Global instability and long sales cycles (up to two years) pose potential headwinds.
III. Aluula’s Value Proposition — In Their Own Words
“Aluula is revolutionizing the material science space where you can combine high performance and sustainability in the same product.”
“We have a patent around the product and the process to create composites without glues—fusing at a molecular level.”
“Because it’s entirely polyethylene, it’s a mono-material and recyclable at the end of its useful life. That’s a big differentiator.”
“With Aluula materials, you can weld seams—creating waterproofness, strength, and lightness by removing extra steps.”
“We’re first to market. Building brand equity and sticky customer relationships really matters.”
“PFAS-free and fully circular is no longer a ‘nice-to-have’—it’s a need-to-have.”
“Commercial and industrial markets may not be sexy—but they’ll drive real revenue growth over time.”
This podcast was recorded and is being made available by SNN, Inc. (together with its affiliates and its and their employees, “SNN”) solely for informational purposes. SNN is not providing or undertaking to provide any financial, economic, legal, accounting, tax, or other advice in or by virtue of this podcast. The information, statements, comments, views, and opinions provided in this podcast are general in nature, and such information, statements, comments, views, and opinions, and the viewing of/listening to this podcast are not intended to be and should not be construed as the provision of investment advice by SNN. The information, statements, comments, views, and opinions expressed in this podcast do not constitute and should not be construed as an offer to buy or sell any securities or to make or consider any investment or other course of action.
The information, statements, comments, views, and opinions expressed in this podcast (including by guest speakers who are not officers, employees, or agents of SNN) are not necessarily those of SNN and may not be current. Reference to any specific third-party entity, product, service, materials, or content does not constitute an endorsement or recommendation by the SNN. SNN assumes no responsibility or liability for the accuracy or completeness of the content contained in third party materials or on third party sites referenced in this podcast or the compliance with applicable laws of such materials and/or links referenced herein. The views expressed by guest speakers are their own and their appearance on this podcast does not imply an endorsement of them or any entity they represent. SNN does not make any representation or warranty as to the accuracy or completeness of any of the information, statements, comments, views, or opinions contained in this podcast, which may include forward-looking statements where actual results may differ materially. SNN does not undertake any obligation whatsoever to provide any form of update, amendment, change, or correction to any of the information, statements, comments, views or opinions set forth in this podcast.
SNN EXPRESSLY DISCLAIMS ANY AND ALL LIABILITY OR RESPONSIBILITY FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR OTHER DAMAGES ARISING OUT OF ANY INDIVIDUAL’S USE OF, REFERENCE TO, RELIANCE ON, OR INABILITY TO USE, THIS PODCAST OR THE INFORMATION PRESENTED IN THIS PODCAST.
By accessing this podcast, the listener acknowledges that the entire contents and design of this podcast, are the property of SNN, or used by SNN with permission, and are protected under U.S. and international copyright and trademark laws. Except as otherwise provided herein, users of this podcast may save and use information contained in the podcast only for personal or other non-commercial educational purposes. No other use, including without limitation, reproduction, retransmission, or editing of this podcast may be made without the prior written consent of SNN.
