- Huge market potential for plant-based foods
- Over 22,500 square foot of production and distribution
- Developing possible coronavirus treatment too
What Naturally Splendid Enterprises does:
Naturally Splendid Enterprises Ltd (CVE:NSP) (OTCMKTS:NSPDF) says it is the current 'go-to' manufacturer for health food products and ingredients and its focus is plant-based.
The company also provides contract manufacturing services for many global healthy food companies, private labelling a wide variety of nutritional food products.
It operates a SQF Level 2 certified food manufacturing facility just outside Vancouver spanning 25,000 square foot, and churns out brands, via its Prosnack subsidiary, like Natera Sport, Natera Hemp Foods, and the Woods Wild bar.
Prosnack generates revenue via two streams - contract manufacturing accounts for 57%, while the remaining 43% is attributed to the firm's own brands.
The firm says it has a myriad of new products and lines being developed and also proprietary technologies for the extraction of high demand, healthy omega 3 and 6 oils from hemp.
Before the coronavirus pandemic, the plant-based food category was growing at a rate outpacing traditional food channels.
How is it doing:
In its 2019 results posted on June 16, 2020, Naturally Splendid reported a 46% increase in sales as it continues to expand its bars and bites business, while streamlining other operations. Sales came in at C$3,037,512, which was C$964,000 up on the C$2,073,776 recorded in 2018.
The group said it had suspended cannabis extraction and cannabis edible opportunities to direct its focus on the rapidly growing plant-based diet market and has invested significantly in its manufacturing facility.
The year saw the group's loss widen to C$7,030,070 compared to a loss of C$1,611,361 in 2018, due to increased operating costs, but mainly its sale of POS BPC Manufacturing Corp though, which gave it a gain of C$5,071,223 in 2018.
In contract manufacturing, Naturally Splendid said it had secured significant clients in both the foodservice and retail sectors and continues to attract much attention from prospective clients.
On June 8, the firm announced it had raised C$1.5 million gross to advance the Prosnack facility, issuing over 42.8 million units at C$0.035 each.
Significantly, in May the firm revealed it was entering the coronavirus (COVID-19) space, forming a joint venture with Biologic Pharmamedical Research, which it has been working with for two years on other versions of the same tech, to develop Cavaltinib as a treatment for coronavirus.
The drug candidate, which features curcumin, has been shown to inhibit IL-6 and several other cytokines central to the 'cytokine storm' phenomenon, which is seen in seriously ill COVID-19 patients. An application for a Phase 2 trial has now been submitted to Health Canada.
The Phase 2 portion of the study would be expected to last four weeks, which will include monitoring of patients and correlating of the data. If preliminary data is positive, the trial will move directly into Phase 3.
Naturally Splendid said the same study protocol for a clinical trial was also being prepared for submisson to the US Food and Drug Administration.
- Start of a Phase 2 coronavirus treatment trial
- Further deals, collaborations
- Further ramp-up of Prosnack facility output
What the boss says:
In his latest Proactive video, Naturally Splendid chief executive Craig Goodwin explained to Steve Darling that the plant-based market was growing much faster than most other grocery categories.
This, along with the challenges of the pandemic, meat production shortages and a shift in dietary wants is creating an opportunity for the firm, he said.
"A brand new clientele who may not have tried plant-ingredient products in the past, meat replacement products if you will, are now open to these suggestions," said Goodwin.
"Plant-based, botanical ingredients, health and wellness, has always been Naturally Splendid's goal and our mission and it remains true to this day," he added.