Netflix Documentary Sparks a Nutrition Craze and One Tiny Baby Food Company – Else Nutrition Holdings Inc. (TSX.V:BABY) (OTCQB:BABYF) – Is Set to Absolutely DOMINATE this Segment of the Market…
Did Arnold Schwarzenegger spark a food revolution with his documentary film The Game Changers?
Since its release on Netflix in 2019, the scientific documentary has seemingly sparked a surge in interest for the search term “plant-based” on Google—up an incredible 180% since the movie was released.
- Else Nutrition Completes $8,000,000 Private Placement and Strategic Investment by NewH2 Limited
- Else Nutrition Aims to Disrupt Baby and Child Nutrition Forever, with Plant-Based, Non-Dairy/Non-Soy Nutrition
- Else Nutrition Announces Million Strategic Investment by NewH 2 Limited and the Signing of a Distribution Agreement with Health and Happiness International Holdings Limited, a Global Premium Nutrition and Wellness Company
- Else Nutrition to Debut its First Product at Natural Products Expo West 2020 in Anaheim during March
There’s a saying on Wall Street, “The trend is your friend.”
Generally, the saying is used to describe trends seen in the technical analysis of a stock’s chart, or the market in general.
However, it can also apply to investing in and profiting from societal trends.
Plant-based food is a massive societal trend happening right now with North America leading the way with US$4.5 billion in sales.
This trend has the possibility of touching everyone’s life at some point, and it’s already likely that you or someone you know is following – and spending money – on this trend.
Luckily, there’s still time for investors to discover the new market’s next big household name to go along with the now popular Beyond Meat and Impossible Burger lines.
As a matter of fact, there is one small, virtually unknown company that is poised to dominate a massive piece of the industry that food giants like Danone, and the Kraft Heinz Company have missed.
The good news is, you don’t have to miss out any longer…
Meet Else Nutrition Holdings Inc. (TSX.V:BABY) (OTCQB:BABYF), creators of an highly -anticipated,1 award-winning2 line of 100% plant-based, non-soy infant formulas and adult meal replacements. Founded by a trio who cut their teeth with Abbott, and Nestle, amongst others—and having raised a CAD$7.5 million investment through Canaccord Genuity Inc.— Else Nutrition Holdings Inc. (TSX.V:BABY) (OTCQB:BABYF) is well equipped to make its mark… and fast.
Moving beyond the meat-replacement products such as burgers, pork and chicken, the next potential breakthrough market could very likely be sipped, not chewed.
“feels like the tipping point, but it’s just the beginning. We’re in the early days of a major shift.”
While this may already feel like “peak plant,” in reality the plant-based boom is just beginning. Caroline Bushnell—associate director at a non-profit focused on creating a sustainable food system—recently told USA Today that 2019 “feels like the tipping point, but it’s just the beginning. We’re in the early days of a major shift.’’3
A recent US Market Research Study of 1,858 statistically significant potential customers showed very favorable results, indicating more than 80% of respondents had a favorable view of the Else Nutrition Holdings Inc. (TSX.V:BABY) (OTCQB:BABYF) product concept.
By looking at the company’s recent share price increase, it’s pretty clear that investors are excited about Else Nutrition’s plans to win in the infant and the adult meal replacement segments of the plant-based food industry.
In the six weeks between December 6 and January 17, TSX.V:BABY grew from C$0.30 to $0.51. That’s a remarkable 70% jump in value in just a month and a half! And what’s even more impressive is it did it during a TSX Venture bear market.
Analysts at Tradingview have also been taking notice of Else Nutrition Holdings Inc. (TSX.V:BABY)(OTCQB:BABYF), giving the food and nutrition company a “STRONG BUY” rating in one of the popular technical indicators.4
Potential Dual-Breakout Star Within TWO Huge Markets
Since April 2017, plant-based food sales have increased a whopping 31% while total food sales remain flat.5
With its potentially FDA-approval-ready6 breakthrough formulas for 100% plant-based, non-soy infant formula and adult meal replacements, Else Nutrition Holdings Inc.’s (TSX.V:BABY) (OTCQB:BABYF) timing is impeccable.
Through the underserved speciality infant formula route, the company has an ace up its sleeve that many of the “burger” producers do not.
Cow’s milk is the number one allergen for children under the age of five. Milk allergies currently affect half of American food-allergic children under one year old. Despite this, the vast majority of infant formulas are milk-based.8
According to a recent study from Wizer,9 40% of current US infant nutrition consumers buy a speciality formulation (ie. medical/prescribed milk, soy-based formula, or sensitive milk formula) for their children.
In formulas, it’s important to note that 1 in 12 families today are raising their children on plant-based diets.10 That’s nearly 5 million American children who will grow up eating plant-based food.
Else Nutrition Holdings Inc.’s (TSX.V:BABY) (OTCQB:BABYF) award-winning baby formula is the only non-dairy, non-soy veritable alternative for this massive, US$2 billion U.S. specialty formula market.11
But it gets better…
The company just received a formal notice of allowance from the US Patent & Trademark office for the extension of its existing patents to cover the market of ADULTS suffering from malnutrition.12
The global meal replacement market is projected to reach US$24.8 billion by 2025, growing at a CAGR of 6.9% during the 2019-2025 period.13
Else Nutrition’s patented composition provides the necessary proteins, amino-acids and other nutrients needed in a single food serving.
By entering the adult meal replacement market, Else Nutrition Holdings Inc. (TSX.V:BABY) (OTCQB:BABYF), has just significantly widened its net… and made a statement to many of the bigger names in the sector to take notice.
Now with adults in the picture, the company is targeting the 31% of Americans who consider themselves flexitarians.14 That’s just over 100 million people.
Suddenly there’s huge potential across TWO markets for Else Nutrition Holdings Inc. (TSX.V:BABY) (OTCQB:BABYF) and its proprietary, highly-anticipated line of patented products.
Through the sale of vegan baby snacks, bottles and accessories in Israel Else Nutrition Holdings Inc. (TSX.V:BABY) (OTCQB:BABYF) is already generating revenue — USD$800,000 in 2018.
What type of growth could be expected with a successful US launch? Let’s look at what has happened recently with some other companies in the Plant-Based Food space.
The world’s largest producer of infant formulas,15 Nestle S.A. (SWX: NESN), recently filed an international patent for its own vegan formula product.
Else Nutrition Holdings Inc.’s (TSX.V:BABY) (OTCQB:BABYF) leadership team has its own former ties to Nestle, and a portfolio of past successful baby food products.
Else’s formulation has been granted composition patents through 2034 in 19 countries (including the USA, Japan, Australia, and Israel), with 47 countries patent-pending.16
Ahead of the US Market launch, its toddler formula received a favorable regulatory assessment from EAS Consulting Group, LLC, which conducted a preliminary review of the Else formula in view of the FDA requirements.17
- Else Nutrition Holdings Inc. Signs Production MOU With A Leading U.S. Organic Baby Formula Producer
- Else Unveils Favorable Results from a Broad U.S. Consumer Research Study, Including Strong Purchase Intent
- ELSE Nutrition Receives Grant and A Notice of Allowance From the Eurasian and Japanese Patent and Trademark Offices
Upcoming Near-Term Products to Bolster Current Revenue
The big potential this year for the company is through its market ready baby formula for Toddlers (12-36 months) and kids nutritional drinks.
By Q2 2020 in the US, the new products are set to commercially launch.
Initially, sales will be made online, on Else’s (TSX.V:BABY) (OTCQB:BABYF) branded eCommerce store, via an Amazon shop, and in select eCommerce sites that specialize in Organic/Natural/Specialty food and baby food, and later in a few small local speciality retail chains.
At the infant (0-12 months) level, Else’s Infant Formula is being prepared for clinical testing for FDA/EMA approval, with a commercial market launch estimated within the next 2-3 years.
With its first samples ready, Else Nutrition Holdings Inc. (TSX.V:BABY) (OTCQB:BABYF) is currently undergoing pre-production scale-up runs.
In the leadup, the company recently concluded a comprehensive U.S. customer study, conducted by Wizer, a leading market research provider. The key findings showed that:
- Over 82% (Top 2 boxes) of respondents react favorably to the Else brand concept.
- Over 60% (Top 2 boxes) of respondents indicated positive Purchase Intent for Else’s baby formula products.
“We’ve now validated and have resounding, statistical confirmation from American parents and caregivers that they want these products now.”
Hamutal Yitzhak, CEO and Co-Founder of Else Nutrition
Else’s formula meets the WHO Codex for infant nutrition, is medically endorsed by leading pediatric experts, and is receiving highly favorable results from consumer test studies.
The product is made in baby-formula grade facilities with highest standards—completely free of dairy, soy, hormones, chemicals, antibiotics, gluten, or GMOs.
But there are even more advantages that Else (TSX.V:BABY) (OTCQB:BABYF) has over the competition, which warrant a further deep dive look.
Patented Formula for Pediatrics and Adults
From an IP standpoint, the internationally-patented, Else formula composition (as opposed to technology or process based) is completely free of several things that discerning parents and consumers watch out for, including:
- Traces of pesticides;
- Many other unfavourable additives
Else’s (TSX.V:BABY) (OTCQB:BABYF) science backed approach brought about a cleaner next gen production process and clean ingredient panel.
Featuring a full amino & fatty acid profile, Else meets the gold-standard nutritional composition values of breast milk or any other standard baby formula.
Because incidences of food-based allergies continue to rise, modern families are forced to seek specialty alternatives. Whether or not a family is vegan, or its children suffer from dairy or soy types of food allergies or intolerances , Else Nutrition Holdings Inc. (TSX.V:BABY) (OTCQB:BABYF) provides a much-needed solution to the needs of parents.
Else has developed an innovative all-natural process, that transforms three plants (almond, buckwheat, and tapioca) into a high-quality breast milk nutritional value composition analog just like any other standard formula —without any chemical protein extracts or derivatives.
NO hydrogenated external oil blends.
NO corn syrup solids in the formula.
NO fortification with free amino acids.
This formula is truly special in its class.
Research has concluded that most discerning parents and caregivers surveyed would choose the Else formula moving forward as a responsible, safe, nutritious choice.
Else (TSX.V:BABY) (OTCQB:BABYF) has a very strong IP portfolio, valid through 2034, with patents already granted in 19 countries, including:
- Eurasia (Russia, Belarus + 10 others)
- South Africa
Patents are also already pending in 47 countries.
Else (TSX.V:BABY) (OTCQB:BABYF) spent over 5 years developing and perfecting its proprietary formulations, having already completed R&D on both its toddler formula and kids nutritional drinks. They’re currently in the last R&D stage for their infant formula.
Overall, the company’s portfolio is set to include a wide range of plant-based products, such as:
- Clinical/medical nutrition
- High-protein drinks
- Whole balanced nutritional drinks for kids (3-10yrs)
- Meal replacement shakes (~whole balanced meal)
- High-protein milk substitute
- Whole meal cream cheese, yogurts, and cheese
- Whole meal freeze dried snacks, baked bars, breads, cookies/cakes, and pastas
Perhaps most importantly, the formulations are technology agnostic. This means they’re applicable to and protective of any type of food technology, spanning a diverse range from clinical or functional nutrition, to dairy-based alternatives, baked goods, pastas, and more.
Management’s Winning History in Food Tech Innovation
The entire Else Nutrition Holdings Inc. (TSX.V:BABY) (OTCQB:BABYF) leadership team consists of proven winners in the food tech space. With an impressive combined portfolio and track record of getting new successful products to market with other companies, Else’s management is fully capable of getting its proprietary plant-based products successfully to market.
Hamutal Yitzhak, CEO & Co-Founder
The team is led by Co-Founder and CEO Hamutal Yitzhak who previously served as the Head of Infant Nutrition at Abbott labs Israel, and is a Founder & Partner in Heart Baby Snack co. with fellow Co-Founder and COO Uriel Kesler.
Uriel Kesler, COO & Co-Founder
Prior to co-founding Else, Kesler formerly served as GM PL Infant Formula at Promedico Healthcare Group, Israel.
Michael Azar, CTO & CO-Founder
Prior to joining Else, Michael served as the Former CEO & Chief food Technologist at Materna Infant nutrition, and is an infant nutrition production expert
Former Senior Executive at Retalix (acquired by NCR in 2012), VP Sales Operation, Reuben Halevi bolsters the company’s expertise in retail, eCommerce, and marketing technology.
Director Digital Marketing Barak Orenstein has more than 15 years of consumer goods marketing experience of marketing of consumer goods, including having served as Global Brand Director for such household names as Sodastream, L’Oreal, and Danone.
Director Clinical & Regulatory Affairs Fabiana Bar-Yoseph is a Former Clinical Development Director & Infant Nutrition R&D Director at Enzymotec.
!!!BONUS!!! – IMPRESSIVE ADVISORY BOARD
On the company’s impressive Advisory Board are: Prof. Raanan Shamir, Dr. Jon A. Vanderhoof., Prof. Ron Shaoul, and Katie Kaswell.
Prof. Raanan Shamir: Past President of ESPGHAN – European Society for Pediatric Gastroenterology Hepatology and Nutrition Professor of Pediatrics, Sackler Faculty of Medicine, Tel-Aviv University. Chairman, Institute of Gastroenterology, Nutrition and Liver Diseases, Schneider Children’s Medical Center.
Dr. Vanderhoof: Former Vice President, Global Medical Affairs at Mead Johnson Nutrition. Pediatric gastroenterologist at Boston Children’s Hospital, Senior Lecturer in Pediatrics at Harvard Medical School.
Prof.. Shaoul: Head of Pediatric Gastroenterology & Nutrition Institute, RAMBAM Medical Center, Haifa, Israel. Clinical Associate Professor, Technion, Faculty of Medicine.
Katie Kaswell: Former Vice President of Marketing at Plum Organics Baby Foods, Formula and Snacks. Health-Supportive Chef.
Else Nutrition (TSX.V:BABY) (OTCQB:BABYF) is creating an alternative for a $90 billion well-educated and ‘wanting’ market with its 100% Plant-Based, Non-Dairy, Non-Soy, Hormone-free, Gluten-free, non-GMO baby products that taste great.
9 TURNING POINTS TO REMEMBER FOR
Else Nutrition Holdings Inc. (TSXV:BABY) (OTCQB:BABYF)
- Else Nutrition has developed an award-winning infant formula, the FIRST 100% plant based, non-dairy, and non-soy alternative of its kind
- Already generated revenue of USD$800,000 in 2018 in Israel alone… with market-ready toddler formuland kids nutritional drinks set to launch commercial sales in the USA for Q2 2020
- STRONG BUY rating given by industry analysts, TradingView
- Co-Founders from Abbott, Nestle, and Promedico
- Superior taste and free of dairy, soy, hormones, chemicals, antibiotics, gluten, or GMOs
- Patented in the US and 19 countries—with an additional 46 countries patent-pending
- Science backed formula with a full amino & fatty acid profile meets the gold-standard nutritional composition values of breast milk, and patent extended for adult consumption
- Medically endorsed by leading pediatric experts, and highly-anticipated by parents/caregivers in recent US study
- Clean label product, sustainably produced with minor ecological footprint