3/21/2022 11:00:00 PM

One growth sector that’s providing opportunities for Pie

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A growing niche market of electronic shelf labels provided excellent opportunities for Pie’s global funds, explains Guy Thornewill, Pie’s Head of Research UK & Europe, who is based in London.

Have you ever wondered why price labels in supermarkets are still made from paper? One French company, SES-imagotag, has created a digital solution and it’s proving a great investment for Pie Funds. 

SES-imagotag serves over 300 retailers around the world in Europe, Asia, and America. French supermarkets and other shops have been using this technology for a long time. SES-imagotag is a global leader in this technology, and one of the biggest players. It has a strong technology lead over its competitors and has significant management ownership - skin in the game - which is something we love about companies.

SES-imagotag recently won Walmart USA as a new customer. This big contract win propelled their stock 24% higher to new all-time highs. The shares are now up almost 200% from where we started buying two years ago. The company should deliver at least 30% sales growth in 2022 despite the challenging market environment, and the Walmart USA contract could add over a billion euros in revenue over the long-term.

The technology provides big benefits to companies. When you visit a supermarket that uses these electronic shelf labels, instead of there being a paper label telling you how much the item costs, it’s electronic. This is done with digital ink or an electronic display. This means the shop can change all the prices centrally, they don’t have to walk around changing them all by hand. The rise in ecommerce and omnichannel means many companies that have a physical store need the same prices online as in their shop, and need to manage their inventory better. Using these labels can streamline and consolidate this process. 

Our three global funds, Global Growth, UK & Europe, and Global Growth 2, are all invested in SES-imagotag. It’s a company we believe is performing strongly and looks set for further growth, as this digital product is in high demand globally. 


Information is current as at March 2022. Pie Funds Management Limited is the manager of the funds in the Pie Funds Management Scheme. Any advice is given by Pie Funds Management Limited and is general only. Our advice relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees, like brokerage, if you act on any advice. As manager of the Pie Funds Management Scheme investment funds, we receive fees determined by your balance and we benefit financially if you invest in our products. We manage this conflict of interest via an internal compliance framework designed to help us meet our duties to you. For information about how we can help you, our duties and complaint process and how disputes can be resolved, or to see our product disclosure statement, please visit www.piefunds.co.nz. Please let us know if you would like a hard copy of this disclosure information. Past performance is not a reliable indicator of future returns. Returns can be negative as well as positive and returns over different periods may vary.