Naturally Splendid Receives Government of Canada Support for Market and Product Development Studies on a Proprietary, Delivery System for Hemp-Oil Omega Products
Vancouver, British Columbia--(Newsfile Corp. - April 11, 2013) - Naturally Splendid Enterprises Ltd. (TSXV: NSP) (the "Company") is pleased to announce it has received financial support from the National Research Council of Canada (NRC) Industrial Research Assistance Program (IRAP) of up to $55,425. The funding will assist with the cost of product development on a proprietary, delivery system for hemp-oil Omega products. The goal of the project is to assess the feasibility and economic viability of industrial hemp-based products compared with existing alternatives, as both a standalone and additive ingredient in the Omega sector. The study will also identify marketing opportunities and optimal products.
The IRAP Contribution Agreement, signed in November of 2012, covers project activities to October 2013. The full cost of the project is estimated at $124,000 and IRAP's share of the total project will be up to $55,425. The Objectives of the Project are to:
- Complete a comprehensive Market Analysis addressing competitive product and market gaps, potential markets and entry strategies and a commercial implementation plan.
- Research the potential utilization of encapsulated hemp oil in existing food products and demonstrate the technical feasibility and nutritional benefit of incorporating it in food products.
- Develop cost effective products (and inclusion rates in formulated products) to create strategic economic applications for encapsulated oil in new commercial products.
The Market Space
The global market of omega-3 fatty acids products was valued at US$24.3B in 2011. The vast majority of that market is attributable to fish and marine sources. However, growth has been significant. In Canada alone, there has been a whopping 1,766% growth in consumption of omega-3 natural health products since 2005 when only 3% of those users were taking omega-3 according to a recent survey.
Recent studies have demonstrated the importance of omega-3 fatty acids to Canadians and Americans. In a 2012 survey, eighty percent (80%) of all Canadians stated that their food purchase decisions are positively influenced by products containing omega-3 ingredients. Fifty two percent (52%) of Americans stated that they are attempting to increase omega-3 ingredients in their diets.
NSE's CEO, Craig Goodwin, states, "The IRAP technical and business advice and funding are of great benefit to the evolution and renaissance of hemp as a "superfood". Our customers want healthy food choices that offer good taste and benefits beyond basic nutrition. Hemp contains a perfect ratio of Omega 3 and Omega 6 as well as containing all the Essential Fatty Acids (EFAs) including SDA and GLA. Hemp is classified as a "functional food" meaning it delivers on both of those consumer demands of good taste and nutrition".
The study is being conducted by two of Canada's most widely respected experts in the fields of nutrition science (Kelley Fitzpatrick MSC) and marketing strategy (Mary Ellen Hodgins, PhD, MBA). According to Hodgins, "Consumer interest in both the omega-3 and hemp markets has grown considerably in recent years as the health benefits derived from these products are better understood. Hemp is particularly attractive as food manufacturers look for new plant-based (vegetarian) sources of omega-3 and protein to address consumer demand."
Goodwin acknowledges and thanks the federal government for their support of this project noting "This kind of research and development is essential for the hemp industry to identify and commercialize the nutritional benefits of hemp and assist in the development of new markets for an exciting new crop for Canadian farmers to include in their crop rotations. Naturally Splendid is dedicated to discovering the full nutritional potential of the hemp plant and to expand the industry in Canada to the benefit of all health conscious consumers."
For further information please contact:
Naturally Splendid Enterprises Ltd.
Suite 605, 1166 Alberni Street
Vancouver, BC V6E 3Z3
J. Craig Goodwin, CEO
(604) 472-0902
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Naturally Splendid cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Naturally Splendid's control. Such factors include, among other things: risks and uncertainties relating to New Age's ability to promote Naturally Splendid's products across Canada. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Naturally Splendid undertakes no obligation to publicly update or revise forward-looking information.
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