Buckwheat Revolution

Believe it or not, buckwheat isn’t actually a type of wheat at all. Instead, buckwheat is a seed that comes from the plant Fagopyrum esculentum, a plant that is commonly cultivated in Asia and parts of Europe and North America. Using the outer shell of the seeds, we are able to make flour for a variety of culinary purposes. For example, this flour can be used to create noodles, breakfast foods, bread, and even some beverages.

Aside from being incredibly versatile, buckwheat seeds are rich in protein and fiber, as well as various antioxidants and other nutrients. To be more specific, one cup of cooked seeds contains approximately 155 calories, with 6 grams of protein, 1 gram of fat, 33 grams of carbohydrates, and 5 grams of fiber. Additionally, buckwheat is loaded with manganese, magnesium, niacin, zinc, phosphorus, folate, and vitamin B6.

Boasting impressive nutritional value, many consider buckwheat to be a superfood. Buckwheat is also gluten-free, making it accessible to those suffering from gluten-related disorders such as celiac disease. In addition to being gluten-free, buckwheat is also considered a whole grain, suggesting that it could have benefits for one’s heart health. Furthermore, buckwheat contains complex carbohydrates, allowing people to better manage their blood glucose levels.

However, it is worth noting that cases of severe allergic reactions to buckwheat and buckwheat-containing products have been reported. According to a study published by Plants, the prevalence of buckwheat allergy in the population can be estimated as 0.1 to 0.4% in Japan, Korea, and buckwheat consuming areas of China. Among patients in allergy clinics in different countries, 2 to 7% confirmed buckwheat allergies.

In total, the incidence of severe allergic reactions to buckwheat can be estimated as 0.1 to 0.01 cases per 100,000 person-years. With this in mind, the prevalence of buckwheat allergies is typically higher in Asia, where buckwheat is eaten on a regular basis. In fact, buckwheat is the sixth most common cause of food allergy in Japan. On the contrary, buckwheat allergies are considered quite rare in North America, however, prevalence could increase as buckwheat consumption continues to grow.

Else Nutrition Holdings Inc.

• $117.741M Market Capitalization

Else Nutrition Holdings Inc. (BABY.V) is an Israel-based food and nutrition company focused on the development of innovative, clean, and plant-based food and nutrition products. The Company’s products are intended for infants, toddlers, children, and adults. Furthermore, Else Nutrition has developed a plant-based, non-soy, formula that is a clean-ingredient alternative to dairy-based formula.

It is worth noting that the Company’s formula has been tested for heavy metals of concern such as arsenic, cadmium, lead, and mercury. Test results demonstrated that Else Nutrition’s formula did not contain any of the aforementioned metals. However, the protein in ELSE Toddler Nutrition is provided primarily by almond and buckwheat ingredients.

The buckwheat flour used in ELSE Toddler Nutrition is treated with alpha-amylase to digest some of the complex carbohydrates into smaller pieces to facilitate digestion in young children. For context, alpha-amylase is a safe processing aid in the production of both human and animal food. To provide some more context, alpha-amylase is the major form of amylase, a natural enzyme found in humans and other mammals.

Keep in mind, Else Nutrition has acknowledged that, although relatively rare, buckwheat has been reported as a Type I, IgE- mediated immediate-type reaction. In response to this, the Company’s full ingredient listing is available on the Else toddler formula alternative.

Latest News

Most recently, on January 18, 2022, Else Nutrition announced that it has signed an agreement to establish a specialized manufacturing site in Oregon, United States (US). This facility will be used to process and prepare demineralized buckwheat for the Company’s infant formula. Else Nutrition has completed the development of its unique production process and anticipates production for the first batch of specially processed buckwheat to occur in Q1 2022.

“This is a great step in our quest for plant-based clean label infant nutrition, since buckwheat is a key ingredient in our infant formula, and nowhere else in the world is it processed in such a way…

This is a very encouraging development along our manufacturing pathway as we look ahead to launching a real and first Plant-Based, Clean label Dairy-free and Soy-free, minimally processed infant formula in the market,” said Hamutal Yitzhak, CEO & Co-Founder of Else Nutrition.

According to Else Nutrition, buckwheat will be processed under the strictest quality controls and standards without the use of chemicals or solvents. Furthermore, the Company’s proprietary process uses all-natural processes and is capable of maintaining the natural chemical composition of ingredients intact including protein, carbs, and fats, among others.

Additionally, on January 17, 2022, Else Nutrition announced that, following a successful launch of ELSE Toddler Nutrition at Sprouts Farmers Market, the retailer will be adding two additional products. These products include Else Plant-Based Kids Shakes in chocolate and vanilla flavors.

“This is a strong sign from a key natural food retailer, the largest to carry Else Nutrition to date…We’re excited that consumers with children shopping at Sprouts’ will enjoy the same Clean Label Purity Award-Winning quality and whole Plant-Based Nutrition that our Toddler Nutrition products have been providing to thousands of toddlers nationwide,” commented Hamutal Yitzhak.

In combination with buckwheat, almond and tapioca account for more than 90% of the ingredients used in the Company’s Else Complete Nutrition Shakes for Kids. Made from whole food, clean organic ingredients, these shakes also contain 50% less sugar than leading brands in this market segment.

In terms of performance, Else Nutrition expects that the launch of new Kids products will accelerate the Company’s overall sales growth at Sprouts. This claim is supported by the fact that in the ten months of sales since the Company’s February 2021 launch of ELSE Toddler Nutrition at Sprouts, sales velocity grew steadily to 1.2 units per store per week (UPSPW), surpassing the category average.

Furthermore, Sprouts’ Net Operating Profit After Tax (NOPAT) margin is second only to Amazon.com, outperforming names like Walmart and Costco. That being said, Sprouts has managed to improve its profitability while also expanding its store count. From 2013 to the end of Q3 2021, the company’s store count has grown by 10% compounded annually. Moving forward, Sprouts intends to an additional 25-30 stores in 2022.

Financials

According to Else Nutrition Q3 2021 Financial Results, the Company had cash and cash equivalents of CAD$12,579,000 on September 30, 2021, compared to CAD$21,538,000 on December 31, 2020. As of September 30, 2021, Else Nutrition had total assets and total liabilities of CAD$20,857,000 and CAD$11,072,000, respectively. In total, the Company reported a net loss of CAD$1,469,000, or CAD$0.01 per share, compared to CAD$3,930,000, or CAD$0.05 per share in Q3 2020.

Some of Else Nutrition’s operational highlights include successfully listing on Walmart.com and Kroger-owned online platforms, growing the Company’s online sales by more than 27% compared to Q2 2021 and 77% compared to Q1 2021. Additionally, Else Nutrition was able to grow its US retail presence to more than 1,200 listed stores, including listings with Rouses Markets, Harmon’s Grocery, and Roche Bros. Else Nutrition has also received conditional approval to graduate to the Toronto Stock Exchange (TSX), with final approval expected on or before January 20, 2022.

As a whole, the Global Infant Formula Market was estimated at USD$57.12 billion in 2019 and is expected to reach USD$110.26 billion by 2026, expanding at a compound annual growth rate (CAGR) of 9.8% from 2019 to 2027. While Else Nutrition’s operating expenses increased substantially to CAD$12,813,000 for the nine months ended September 30, 2021, the Company has expanded significantly in the last year as a result. Furthermore, Else Nutrition’s Q3 2021 revenue grew by nearly 210%, reaching CAD$1.7 million following the Company’s efforts to strengthen its online sales.

Else Nutrition’s share price opened at $1.15, up from a previous close of $1.12. The Company’s shares are up 0.89% and were trading at $1.13 as of 11:43 AM EST.