Join our daily newsletter At The Bell to receive exclusive market insights
- The Sustainable Nutrition Group (TSN) enters an agreement with Australian Plant Proteins (APP) to develop a hemp concentrate and isolate for the plant protein market
- TSN plans to utilise APP’s ‘state-of-the-art’ facility to develop the products and will own the intellectual property and have a 15-year exclusivity on sales
- Importantly, the deal enables TSN to enter the US$10.8 billion (A$14.83 billion) global plant-based ingredients market with limited capital expenditure requirements
- Company shares are up 15 per cent to trade at 23 cents
The Sustainable Nutrition Group (TSN) has entered an agreement with Australian Plant Proteins (APP) to develop a hemp concentrate and isolate.
APP is a premium plant-based powder processing, packaging and distribution business with facilities in Victoria.
In the first quarter of 2022, TSN will invest in developing a hemp concentrate and isolate using APP’s protein isolate factional facility. TSN will own this intellectual property for the unique product and have 15-year exclusivity on its sale.
The hemp isolate is expected to contain between 88 and 92 per cent protein while maintaining other nutritional benefits of hemp such as Omega 6 and 9, and magnesium.
According to the company, the products will be pale in colour and neutral in flavour, and will have excellent solubility and emulsifying characteristics. The hemp isolates will also be non-allergenic and non-GMO which sets it apart from some other plant and animal proteins.
“By partnering with APP, TSN can leverage opportunities in the plant protein market to take advantage of strong consumer demand for plant-based health and wellness products,” Managing Director Neale Joseph said.
“In particular, APP‘s proprietary protein extraction process creates ‘clean’ protein powders without the use of solvents or enzymes. The result is a sustainably produced, great tasting plant protein ideally suited to a broad range of food and beverage applications.”
Commercialisation is expected to begin in the final quarter of FY22 and will initially target the Australian and New Zealand markets before branching out globally.
Importantly, the deal enables TSN to enter the US$10.8 billion (A$14.83 billion) global plant-based ingredients market with limited capital expenditure requirements.
Company shares were up 15 per cent to trade at 23 cents at 1:54 pm AEDT.
-1200x645-380x200.jpg)
