VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 30, 2014) - Naturally Splendid Enterprises (the "Company") (TSX VENTURE:NSP)(OTCQB:NSPDF)(FRANKFURT:50N) is pleased to announce it has placed its first order with Boreal Technologies Inc. ("Boreal") for one metric tonne of their patented, hemp-based omega 3 product "HempOmega™". This first ever commercial production run of HempOmega™ will arrive at Naturally Splendid's warehouse before August 15th, 2014. Following years of extensive testing and refinements, this plant based omega 3 product line is now ready for sale as an additive to supplement a wide variety of existing food and beverage products as well as a stand-alone omega 3 product.
Naturally Splendid CEO Craig Goodwin states, "This is truly a milestone for Naturally Splendid. Our exclusive marketing rights for these breakthrough omega 3 products, which includes HempOmega™, extends North America wide. The applications for our exclusive plant based omega products are expansive and extend from omega enriched dairy, dairy alternatives, breads, cereals, dry goods and beverages for human consumption, to omega enriched pet food. Longer term potential exists for the inclusion of HempOmega™ in aquaculture and livestock feed that could naturally increase the omega profiles of a variety of meats, dairy and egg products."
The Technology
Developed by Boreal, these proprietary omega formulations utilize both microencapsulation as well as liposomal formulation providing a more efficient delivery process to the human digestive system. Preliminary testing has confirmed that these products offer increased bioavailability and sustainability by encapsulating lipids and transforming the insoluble ingredients into a stable aqueous suspension. The suspended particles can then be used in a liquid state or converted into a fine, flour-like, dry powder ingredient. This procedure allows for multiple methods of product implementation: capsules, powders, baked goods, beverages, etc. with precise control over formulation, dosage and uptake. This technology creates value-added ingredients and expands the market potential for oil-based substances which can prove challenging to handle, store and formulate.
The Nutrition Market
According to Nutrition Business Journal, the global nutrition industry is estimated to be approximately US$350 billion [1] with global health and wellness sales on track to hit a record high of US$1 trillion by 2017 at a steady real growth rate of 7.2% according to Euromonitor International [2]. The sector is represented by the following categories: natural and organic food; natural personal care; functional food; and dietary supplements. The global market for omega 3 products was valued at US$24 billion in 2011 by David Sprinkle, publisher of "Packaged Facts," and growth in the dietary supplement market specifically, is estimated at 12% annually [3].
In a recent Ipsos Reid survey conducted by BioAccess, Canadian respondents showed that a full 80% of Canadians are influenced to buy a product if it contains omega-3 fatty acids. Additionally, the survey found that 45% of all Canadians have used, or are currently using, omega-3 fatty acids in a natural health product format. And in the U.S., the Hartman Group found that 52% of Americans stated that they are attempting to increase omega-3 ingredients in their diets.
Bryan Carson, Naturally Splendid Co-founder and VP of Operations summarizes, "Consumer demand for omega-3 fatty acids has increased substantially since 2005. In Canada alone, there has been a 1,766% growth in consumption of omega-3 natural health products since 2005 according to studies conducted by Ipsos-Reid. Naturally Splendid has the right product, for the right market at the perfect time."
HempOmega™ / Plant-based Omega Product Distribution Strategy
The marketing and distribution of HempOmega™ in particular and the plant-based omega products overall, is multi-faceted and can be categorized as follows:
1. As an ingredient in proprietary or private label products
Naturally Splendid has begun development of a number of proprietary products incorporating HempOmega™. Product development will now be expanded to include the complete line of plant-based omega products. Launch of the first product lines is anticipated to be the fourth quarter of 2014. These products have the potential to be private labeled to enhance market penetration.
2. Provide plant based omegas as an ingredient to major brands to be added to existing and/or new product lines
Naturally Splendid has provided samples of HempOmega™ and H2Omega™ to major brands who have expressed interest in incorporating these products as an ingredient in a particular formulated product. Evaluation of these products is under way by these companies. The potential exists for Naturally Splendid to now offer the full range of the plant-based omega products to these and additional companies.
3. Collaborate with Ingredient Suppliers to market as standalone ingredients as well as co-develop ingredient formulations and solutions for their client base
Naturally Splendid plans to form strategic alliances with ingredient suppliers for distribution of plant -based omega ingredients and/or product development incorporating the plant-based omegas in custom formulations. Ingredient suppliers provide large quantities of a wide range of ingredients to a clientele base that includes the largest food processors and food service companies in the world. As a strategic move to initiate this distribution strategy, Naturally Splendid announced in a news release dated September 10, 2013, the signing of an NDA with Calico Food Ingredients located in Kingston Ontario, Canada, and on November 5, 2013, Naturally Splendid announced an NDA with Caldic Canada Inc.
About Naturally Splendid Enterprises Ltd.
Naturally Splendid's 100% owned NATERA™ line of hemp-based superfood products are carried nationwide by Canada's leading health food distributors and a network of retail stores across Canada including major retailers and specialty stores. Naturally Splendid's 100% owned "NATERA™" line of products includes natural and flavored shelled hemp seeds as well as natural and flavored hemp protein powders.
Naturally Splendid has an exclusive sales agreement to market and distribute, in North America, the full complement of patent pending, plant-based omega products created by Boreal Technologies. The products include HempOmega™ and H2Omega™, as well as the FlaxOmega™, CanolaOmega™, and ChiaOmega™ plant based omega products. These novel products utilize microencapsulation and liposome technologies and are available in both a powder format and an aqueous solution for increased flexibility in ingredient applications and stand-alone products.
On Behalf of the Board of Directors
J. Craig Goodwin, CEO, Director
Naturally Splendid Enterprises Ltd.
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 Naturally Splendid's ability to complete proposed private placement financing. 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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References
[1] Nutrition Business Journal (2011) Global Nutrition Industry Overview. Volume XVI. No. 11/12. Nov/Dec 2011.
[2] http://blog.euromonitor.com/2012/11/health-and-wellness-the-trillion-dollar-industry-in-2017-key-research-highlights.html
[3] http://www.startribune.com/business/133124358.html?refer=y