The Sustainable Nutrition Group (ASX:TSN) has received positive results in the development phase of its unique hemp isolates and concentrates with Australian Plant Proteins (APP).
Highlights
- Strong test results: Positive test results indicate that the development of high protein, soluble and tasteless hemp isolates and concentrates is on track, with a significant range of identified commercial applications.
- Highly favourable characteristics: The hemp protein concentrate is nonallergenic, gluten free, non-GMO and the protein level of >85%, compares favourably to soy protein concentrates (~81%), pea protein concentrates (~83%) and faba bean protein concentrates (~85%).
- Leveraging leading technology: TSN is leveraging APP’s leading technology infrastructure which is underpinned by a $47.5m investment from global agrifood company Bunge Limited and $113m in Federal Government funding, to execute a low capex, fast-to-market development strategy.
- Product refinement: Further product refinement in Q4 for the uses of isolates as an ingredient in food, beverages and for industrial proteins.
- Commercialisation in FY23: TSN is planning to distribute commercial samples of finished product to key customers in early FY23, with commercial sales to follow.
TSN said the positive test results indicate that the development of high protein, soluble and tasteless hemp isolates and concentrates is on track, with a significant range of identified commercial applications.
Protein extraction from whole seed hemp cake has achieved a protein level of >85%, which compares favourably to soy protein concentrates (~81%), pea protein concentrates (~83%) and faba bean protein concentrates (~85%).
In addition, TSN’s hemp protein concentrates are non-allergenic, gluten free, nonGMO and are Australian grown and processed. In November 2021, TSN announced a partnership with APP to develop unique hemp concentrates and isolates.
APP is a premium plant-based powder processing, packaging and distribution business, with state-of-the-art facilities in Werribee and Horsham.
TSN says it is well positioned to benefit from significant investments in APP from global agrifood company Bunge Limited ($47.5m) and $113m worth of funding from the Federal Government to advance Australian production of plant-based proteins.
With an initial investment of $90K, TSN is leveraging APP’s leading technological infrastructure to execute a low capex, fast-to-market development strategy.
Under its agreement with APP, TSN will own the intellectual property for the hemp concentrates and isolates and have 15-year exclusivity on its sale.
Upon completion of development, commercialisation is on track for early FY23. The first step in the commercialisation strategy is to provide commercial samples of the finished product to key customers. These food manufacturers will then conduct their own internal product development, with commercial sales to follow. The products are expected to be sold into the rapidly expanding plant-based food and beverage markets, including milks, yoghurts, meat alternatives, protein bars and shakes, baked goods, protein supplements as well as sauces and condiments producers.
TSN’s unique hemp isolates and concentrates have the potential to play a significant role in replacing animal and other plant-based proteins. This new range of products is expected to generate new revenue streams for the company at attractive margins.
TSN has commenced discussions with leading ingredients distributors who supply more than 30 countries globally.
The global plant-based ingredients market is estimated at over US$10 billion. Following the successful first product launch, TSN anticipates investing in additional development activities with APP to further expand TSN’s hemp concentrate and isolate product range.
