Launch of Moon cheese NR EnWave Announces Launch of Moon Cheese® via NutraDried LLP
October 17, 2013
EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the "Company") announced today that NutraDried LLP (“NutraDried”), a joint partnership between the Company and Lucid Capital Management (“Lucid”), has officially begun the commercial launch of Moon Cheese®, a healthy, crunchy, 100% natural cheese snack. Three varieties of Moon Cheese® (American Cheddar, Pepper Jack and Gouda) will initially be launched in up to 200 stores throughout two grocery store banners, Fred Meyer and Quality Food Centers (“QFC”). Both banners are owned by the Kroger Company (“Kroger”), the largest grocery store chain in the United States of America (the “U.S.”).
Launching Moon Cheese® in two of the most well-known grocery banners in the Pacific Northwest will provide NutraDried with the perfect opportunity to build brand awareness and test several in-store promotional plans. If retail sales are successful, NutraDried plans to pursue further shelf space at additional store locations in preparation for the expected delivery of a 100kw nutraREV® machine in Q1 calendar 2014, which is would increase production capacity by approximately five times if acquired. Kroger’s grocery chain consists of just over 3,200 store locations nationwide.
The healthy snacking trend continues to grow in North America as more and more consumers are becoming increasingly conscious about what they are putting in their bodies. There is also attention being paid to the consumption of artificial and genetically modified ingredients. Moon Cheese® consists only of 100% cheese, is gluten-free, high in calcium and a great source of protein. A single serving of Moon Cheese® offers 5 grams of protein and 13% of the recommended daily calcium intake.
Furthermore, it is important to note that NutraDried is operated by the former key management of Brookside Foods, a North American confectionary company that was sold to Hershey Company in 2012. These key members have been responsible for the overall launch strategy, marketing and day-to-day operations of the company. They possess extensive industry experience and maintain existing grocery chain distribution relationships, both necessary for building sales of high-value retail food products such as Moon Cheese® in the U.S. market.
In June 2013, NutraDried entered into a long-term, royalty-bearing Commercial License (the “License”) to use EnWave’s REV™ technology for the exclusive dehydration of 100% natural cheese products in the U.S. The license stipulates that NutraDried will pay a 5% royalty on all future revenue back to EnWave. Currently the percentage ownership of NutraDried remains 70% EnWave, 30% Lucid; however, Lucid has the option to buy-back up to 49% of the joint partnership until year end 2014. EnWave will always retain at least 51% of the joint partnership; therefore, 100% of NutraDried’s future revenue will be consolidated into the Company’s financial statements and the minority interest subsequently backed out.
“NutraDried received very positive feedback for Moon Cheese® throughout the product approval process with Fred Meyer and QFC,” stated Dr. Tim Durance, Chairman and Co-CEO of EnWave. “In addition to the attractive taste and texture, we believe that the high protein content, gluten-free aspect and superior calcium levels will set Moon Cheese® apart from competing snack items.”
“The use of EnWave’s REV™ technology for the production of Moon Cheese® is very attractive from an economic standpoint,” stated Mr. Rufino Dee, CFO at NutraDried LLP. “NutraDried should show growing revenues over the coming months and potentially ramp up sales significantly in 2014 once excess production capacity has been secured.”
About NutraDried LLP
NutraDried LLP is a joint partnership owned by EnWave USA Corporation and Lucid Capital Management. EnWave USA Corporation was established as a subsidiary in the State of Delaware by EnWave Corporation to facilitate this partnership with Lucid. Lucid is part of the Wiebco Group of Companies controlled by the parent company Wiebco Investments Ltd., which is a private holding and management company controlled by J. Hugh Wiebe and his family. Mr. Wiebe has been a Director of EnWave Corporation since December 2010. Mr. Wiebe was formerly a shareholder and Chairman of the Board of Brookside. During his time with Brookside, Mr. Wiebe helped build a highly recognized national chocolate brand through an extensive U.S. retail distribution network.
NutraDried LLP intends to develop and distribute numerous healthy snacking options throughout the U.S. over the coming years. By using EnWave’s proprietary REV™ technology, they can produce all-natural products with attractive colors, excellent flavor and high nutritional content; characteristics valued by many consumers.