The plant based food market is booming. So much so, Meticulous Research says the market could be worth up to $74.2 billion by 2027. All thanks to demand from consumers for sustainable and nutritious food, as noted by Green Queen. Plus, Canadian Prime Minister Justin Trudeau recently announced Canada was making a $100 million investment in plant-based ingredient company, Merit Functional Foods. Better, according to an NBC News report, market research firm “NPD found that 16 percent of Americans say they ‘regularly’ use plant-based alternatives to meat and dairy products, such as almond milk and meat substitutes. More unexpected, though, is that 89 percent of the people eating all of these tell NPD that they’re not vegetarian or vegan — they just like variety in their diets.” It’s all creating sizable opportunity for companies such as Else Nutrition Holdings Inc. (TSXV: BABY)(OTCQX: BABYF)(FSE:0YL), Goodfood Market Corp. (TSX:FOOD), Burcon NutraScience Corp. (TSX:BU)(OTC:BUROF), Conagra Brands Inc. (NYSE:CAG), and Amazon.com Inc. (NASDAQ:AMZN).
Else Nutrition Holdings Inc. (TSXV: BABY)(OTCQX: BABYF)(FSE:0YL) BREAKING NEWS: Else Nutrition a developer of plant-based alternatives to dairy-based baby nutrition, is pleased to provide the following corporate update.
“Our team has been working relentlessly, during an unprecedently difficult time, to bring our product to market. As we get set to launch, we are beyond thrilled to have crossed major hurdles over the past months and weeks – including full scale manufacturing with a U.S. based partner and mobilization of our U.S. supply chain which has culminated in our ability to ship samples of our plant-based formula for toddlers to eager parents across North America,” said Ms. Hamutal Yitzhak, CEO and Co-Founder of Else.
North America Launch
The Company’s proprietary, plant based, clean label formula for toddlers will launch in August 2020. A full-scale marketing campaign for the launch has commenced with samples and pre-order sales over the past few weeks; the product will be shipped to consumers in the U.S. and Canada from two U.S. based warehouses of a third-party logistics partner. The Company’s Amazon.com store will launch in the coming weeks.
The first full-scale commercial manufacturing run of the toddler nutrition powder product was successfully completed by the Company's U.S. manufacturing partner and packed at a co-packer plant in Nevada. The terms of the U.S. manufacturing agreement have been negotiated and a formal agreement will be executed upon the receipt of final yield and cost optimization parameters. The next commercial manufacturing run is booked and secured.
FDA Regulatory Pathway
The Company in conjunction with its FDA consulting partner continues to progress on the regulatory pathway for multiple products including an infant formula and new products currently in development for the adult nutrition market.
Health and Happiness International Holdings Limited
The Company’s negotiations with its strategic partner, H&H Global, for distribution rights of the toddler and infant formula in France are advancing well. The parties are studying the target market needs, channels, and regulations, in addition to preparing a launch plan and negotiating the distribution terms. Additionally, discussions regarding distribution in additional markets have also commenced.
Cash and Runway
The company is well capitalized, with approximately CAD$7.0 million in cash, and no short or long-term debt, to fully support its manufacturing and go-to-market plans for the next 12 months.
Other related developments from around the markets include:
Goodfood Market Corp. (TSX:FOOD), a leading online grocery company in Canada, is pleased to announce that it has closed its previously announced bought deal public offering (the “Offering”), pursuant to which a syndicate of underwriters co-led by Desjardins Capital Markets and Stifel GMP (together, the “Co-Lead Underwriters”), and including National Bank Financial Inc., Scotia Capital Inc., Raymond James Ltd., RBC Dominion Securities Inc., Canaccord Genuity Corp., Eight Capital and Acumen Capital Finance Partners Limited (collectively with the Co-Lead Underwriters, the “Underwriters”) purchased an aggregate of 5,788,000 common shares of the Company (the “Offered Shares”), of which 4,135,000 Offered Shares (the “Treasury Shares”) were issued and sold by the Company from treasury and an aggregate of 1,653,000 Offered Shares (the “Secondary Shares”) were sold by Messrs. Jonathan Ferrari, Chairman and Chief Executive Officer of the Company, Neil Cuggy, President and Chief Operating Officer of the Company, Raffi Krikorian, Vice President, Merchandising of the Company, and Hamnett Hill, a director of the Company, or their respective holding companies (collectively the “Selling Shareholders”) at a price of $6.05 per Offered Share (the “Offering Price”). The Offering represents gross proceeds of approximately $25.0 million to the Company and approximately $10.0 million to the Selling Shareholders.
Burcon NutraScience Corp. (TSX:BU)(OTC:BUROF), a global leader in developing functionally and nutritionally valuable plant-proteins, reported results for the year ended March 31, 2020. “Fiscal 2020 was truly a transformational year for Burcon,” said Johann F. Tergesen, Burcon’s president and chief executive officer, adding, “Coming out of the year, we have a strong balance sheet, we established the Merit Functional Foods joint venture and we partnered with Nestlé, the largest food and beverage company in the world. Through the Merit Foods joint venture, we are well advanced in building a state-of-the-art production facility to produce our unique pea and canola proteins as well as our new protein blends. The production facility, which is on track to be completed in Q4 2020, will be the only commercial facility in the world with the capability to produce non-GMO food grade canola proteins.”
Conagra Brands Inc. (NYSE:CAG) announced that its board of directors approved a quarterly dividend payment of $0.2125 per share of CAG common stock to be paid on September 3, 2020 to stockholders of record as of the close of business on August 4, 2020.
Amazon.com Inc.’s (NASDAQ:AMZN) Amazon Web Services, Inc. (AWS) announced that Moderna, Inc. (Nasdaq: MRNA), a biotechnology company pioneering a new class of messenger RNA (mRNA) medicines, has selected AWS as its preferred cloud provider, as well as its standard for analytics and machine learning workloads. Leveraging its mRNA platform and manufacturing facility with the AWS-powered research engine, Moderna delivered the first clinical batch of its vaccine candidate (mRNA-1273) against COVID-19 to the NIH for the Phase 1 trial 42 days after the initial sequencing of the virus. By building and scaling its operations on the world’s leading cloud, Moderna is able to quickly design research experiments and uncover new insights, automate its laboratory and manufacturing processes to enhance its drug discovery pipeline, and more easily comply with applicable laws and regulations during production and testing of vaccine and therapeutic candidates.
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