NextFerm Technologies announces a commercial manufacturing agreement for the production of ProteVin
NextFerm Technologies, a food-tech company developing ProteVin, a vegan, fermentation-based, non-GMO protein alternative and other innovative yeast-based nutrients, has announced that it has entered into a commercial manufacturing agreement with a subcontractor in India, Kothari Fermentation and Biochem, for the production of ProteVin. The agreement relates only for production services and doesn’t include IP transfer to the subcontractor.
The company's management has worked to find a solution to establish a production setup that will be in line with its financial means, so that, in this stage, this agreement replaces the establishment of the manufacturing plant with the subcontractor in North Macedonia, and will allow the company to supply market demands with a lower investment than planned and with the ability to increase future capacity. In the first stage, the production setup will enable an annual production capacity of US$4 million in revenues. In addition to the production equipment that the company has purchased so far, the company estimates that the necessary investment needed for the completion of the production setup and the purchase of the production equipment for the first stage will be approximately US$2 million. This investment will be financed from the company's own resources.
The completion of the production setup is expected during the Q4 2023. The building in which the production facility is planned to be built already exists and has needed utilities, and most of the equipment needed to operate it has already been purchased by the company and/or is in the possession of the subcontractor and is available for the company’s use.
Starting 2023, five food and dietary supplement companies in the USA and Europe have launched vegan products based on ProteVin, including Swanson, one of the leading and veteran nutritional supplement brands in the USA, Spacemilk and Mushroom Design. In the five products, the ProteVin brand is labeled on the packaging. The company has a wide and growing base of food and dietary supplement companies, including global companies, that are examining ProteVin for use in a variety of alternative products.
In addition to ProteVin, the production facility in India will allow the company to also produce and market the by-product yeast extract, which is obtained in the production process of the protein. This product is an ingredient that enhances taste and flavor in the food industry.
The company has developed a first generation of yeast extract based on a unique technology developed by the company (a yeast strain and unique processes) that contributes to the quality of the yeast extract products and the profitability of these products.
The yeast extract market is estimated at approximately US$1.9 billion in global annual sales, with a growth of approximately 8.7% which is influenced, among others, by the growth of the alternative food market. This is one of the most important and largest categories in the flavors market.
"In past few months, we have focused on finding an efficient and flexible production alternative to the production facility that was planned to be established in North Macedonia, which will be in line with the company's capabilities and financial resources," said Boaz Noy, Chief Executive Officer of NextFerm.
"The production setup that will be established in India will allow us to meet the growing demand for ProteVin, with a lower investment than planned with the ability to increase future capacity. ProteVin is the only alternative protein on the market today with a neutral taste and an animal-like nutritional value, and we believe it will become a leading solution in the global alternative protein industry. In addition, the company will be able to initiate the production and launch of yeast extract, which is a vegan food ingredient that enhances taste and flavor and with a high and growing demand in the food industry."
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