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Blue Mountain pine beetle creates Denim Pine™ marketing opportunity

December 06, 2002
Vancouver, British Columbia

Allan Rock , Minister of Industry and Stephen Owen, Secretary of State (Western Economic Diversification) (Indian Affairs and Northern Development), on behalf of the Government of Canada, today announced $50,000 in non-repayable funding for the Denim Pine Marketing Association enabling the marketing and promotion of Denim Pine™ wood products internationally.

"Out of the devastation the blue mountain pine beetle has brought to our forests, the resourcefulness of British Columbians has resulted in a huge international marketing opportunity," said Minister Rock.

"I am very excited to see this new opportunity for the secondary wood sector," said Secretary of State Stephen Owen. "This is certainly a unique product, one that utilizes available non-living wood resources and once again puts British Columbia in the forefront of entrepreneurial leadership."

"This seed money will help our members go beyond Canada's borders, a first step on our world wide journey," said Muriel Dodge, Chair of Denim Pine™ Marketing Association. "Future efforts will include marketing Denim Pine™ for North American style homes for China and new markets in other countries."

The first international targets for the Denim Pine™ Marketing Association will be the Log Home & Timber Frame tradeshow in Las Vegas, Nevada and Log Home & Timber Frame Expo in Portland, Oregon.

The Denim Pine™ Marketing Association was incorporated as a registered Society in the Province of B.C. in March 2002. Its ten member Board of Directors includes representation from the Nak'azdli First Nations, the Industrial Wood & Allied Workers of Canada (IWA), the private sector and local government. The name "Denim Pine™" has been formally registered under trademark law in Canada and the United States. Although the trademark is privately held, its owner has given the Association exclusive rights to use the Denim Pine™ name and logo in its marketing and licensing activities.

The Association offers members instant brand recognition for the new exotic species and a dynamic lead share program for generating sales.

Denim Pine™ gets its name from the blue colouration resulting from the fungus the blue mountain pine beetle leaves behind on the pinewood. The blue 'staining' does not damage the integrity of Denim Pine™. The appearance and integrity of this wood is attracting international attention. Consumers should look for the Denim Pine™ logo to ensure a quality product.

Funding for this project was provided for in the December 2002 budget and is therefore built into the existing fiscal framework.

For additional information, contact:

Dave B. Morgan
Manager, Communications
Western Economic Diversification Canada
Vancouver, B.C.
Phone: (604) 666-7543

Muriel Dodge
Chair
Denim Pine Marketing Association
Quesnel, BC
Phone: (250) 992-1101

WD Toll-Free Number:1-888-338-WEST (9378)
Teletypewriter (TTY): 1-877-303-3388
WD Website: www.wd-deo.gc.ca.
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Backgrounder

To the benefit of community stakeholders, a society has been formed in British Columbia's interior that has been given the exclusive rights to the Denim Pine Trademark & Design. The focus of the society, which has only been formed just recently in March of this year, is to develop new and existing markets for beetle-killed lodgepole pine under the trademark "Denim Pine" - and to educate the public and industry to view the material as desirable choice for wood products.

The Association's marketing campaign will promote the material as a Canadian/BC product - naturally distressed with a natural aesthetic.

Royalties on sales as well as annual licensing fees are payable to the society. After administration and operation costs, the net royalties paid to the society are used for marketing Denim Pine and are distributed to the affected communities by way of value added and denim pine economic development projects.

The Association's development strategy includes:

1. Keeping board representative of industry and community stakeholders.

2. Establishing licensing agreements with primaries to adopt the logo and segregate stained logs and raw materials and to make them available for production of or sell labeled as Denim Pine products in Canada and the United States.

3. Distribute information to BC manufacturers, solicit their membership as sub-licensees of the logo, allowing them to produce products labeled as "Denim Pine".

4. Educate export markets about the integrity of the wood and its desirability as a unique and beautiful product.

5. Promote denim pine and establish brand awareness in export markets to wholesalers, retailers, primary and secondary wood manufacturers.

The Board of Directors:

Muriel Dodge (Chair), ESP Consulting, Williams Lake BC
Wade Fisher (Vice-Chair), IWA Local 1-425, Williams Lake, BC
Shane Pont (Secretary), Custom Wood Fibre Products, Quesnel, BC
Steve Wallace, Mayor City of Quesnel, Quesnel, BC
Chief Leonard Thomas, Nak'azdli First Nations, Fort St. James, BC
Bob Lebeck, West Fraser Mills Ltd., Quesnel, BC
Steve Planeta, Slocan Group, Quesnel, BC
Susann Brown, United Salvage Logging Association of BC, Wells, BC

Technical Advisors:

Robert Guy, Forintek Canada Corp., Prince George, BC
Chris Hartridge, Hartwood Consulting & Contracting, Quesnel, BC


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