Plant-based food company Nepra Foods Inc. (NPRA:CSE; NPRFF:OTCQB; 2P6.F:FRA) has announced a manufacturing and distribution partnership with global agribusiness Scoular.
The companies will co-develop and collaborate on sales and marketing, Nepra said. New product development under the partnership will use Nepra's research and development team and specialty ingredients from both companies.
"This partnership with Scoular represents a transformational step for Nepra and its ability to continue pushing the boundaries of novel food development and broadening market access," Nepra Foods Chief Executive Officer Chadwick White said. "Scoular is a leader within the agricultural supply chain and a pioneer in bringing new, healthy, clean-label ingredients to market. With this partnership, Nepra is able to penetrate previously inaccessible markets and brands both domestically and internationally."
Plant-based food markets could make up to 7.7% of the global protein market by 2030, with a value of more than US$162 billion, up from US$29.4 billion in 2020, according to a report by Bloomberg Intelligence.
Plant-based food markets could make up to 7.7% of the global protein market by 2030, with a value of more than US$162 billion, up from US$29.4 billion in 2020, according to a report by Bloomberg Intelligence.
Nepra, a self-described disruptor of the food industry based in Colorado, makes plant-based and allergen-free foods that are "environmentally friendly, nutritionally optimized, and taste amazing."
One ingredient that differentiates the company from the rest is its Textured Hemp Protein, or THP, which can be used in any plant-based protein meat analogue and is non-soy and not genetically modified (GMO).
The Catalyst: 'Explosive Growth'
Bloomberg Intelligence's report, "Plant-Based Foods Poised for Explosive Growth," looks at the quickly moving alternative market as global animal and dairy protein demand is set to reach US$1.2 trillion by 2030.
"Food-related consumer habits often come and go as fads, but plant-based alternatives are here to stay — and grow," said Jennifer Bartashus, senior consumer staples analyst at Bloomberg Intelligence. "The expanding set of product options in the plant-based industry is contributing to plant alternatives becoming a long-term option for consumers around the world."
With continued growth, the report suggested that plant-based food alternatives have the potential to become regular sights at supermarkets and restaurants.
"Meat and dairy alternatives could even obtain 5% and 10% of their respective global market shares in the next decade," Bartashus said.
"Meat and dairy alternatives could even obtain 5% and 10% of their respective global market shares in the next decade," Bartashus said.
According to Research and Markets, the growth of the market is "driven by factors such as the increasing intolerance for animal protein amongst consumers, the growing vegan population, and the rising number of venture investments in plant-based food companies."
But the market is also expected to be limited by factors like higher prices for meat substitutes and significant preference for animal-based products.
Bloomberg Intelligence said it also expects that population growth and its strain on resources will contribute to plant-based food growth. Particularly vulnerable is the Asia-Pacific region, expected to have a population of 4.6 billion by 2030.
"As a result, the region is likely to dominate the plant-based protein market, reaching (US)$64.8 billion by 2030, up from (US)$13.5 billion in 2020," Bloomberg said.
A 'Mild and Neutral Flavor'
Scoular buys, sells, stores, handles, and processes grains and ingredients by leveraging its global networks and expertise in international trade. The employee-owned, more than US$9 billion-dollar business is headquartered in Omaha, Nebraska.
"Our partnership with Nepra is a great example of Scoular boosting our gluten-free product development capabilities," said Brian Hansen, Scoular's general manager for food innovation. "It is also an example of how the food industry is becoming increasingly collaborative, enabling companies to combine their expertise to bring new products to the market."
Nepra said its THP is superior to other textured vegetable proteins (TVPs) because it is a complete protein, rich in vitamins and healthy fats, easy to digest, and non-GMO. It said the substance has a "mild and neutral flavor" and "excellent mouth feel and bite."
Last month, Nepra announced a dried, shelf-stable version of its noodles, ProPasta. The company claims the pasta is "indistinguishable from conventional pasta," with 30 grams of protein, 30 grams of net carbs, and nearly 20 grams of fiber per 100-gram serving.
Streetwise Ownership Overview*
Nepra Foods Inc. (NPRA:CSE; NPRFF:OTCQB; 2P6.F:FRA)
"Our ProPasta truly has the ability to not only disrupt but vastly expand the pasta market," Nepra CEO White said. "Unlike non-conventional pasta offerings on the market, our noodles retain that quintessential 'al dente' texture and composure when cooked."
Nepra said it had several goals for 2023, including maximizing its production of THP and increasing ingredient sales by 60% to US$8 million.
Ownership and Share Structure
About 11% of the company is controlled by insiders and management, including Chairman of the Board of Directors, President, and Chief Operations Officer David Wood with 4.5% or 2.3 million shares, the CEO White with 3.5% or 1.8 million shares, and Chief Financial Officer and Director Alex McAulay with 2.3% or 1.2 million shares.
The rest, 89%, is retail.
Its market cap is CA$5.73 million with 51.8 million shares outstanding, 43.7 million of them free-floating. It trades in a 52-week range of CA$0.47 and CA$0.045.
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