Else Nutrition (TSXV:BABY) (OTCPK:BABYF): RichTV Live Interview

Else Nutrition

Else Nutrition Holdings Inc. (TSXV:BABY) (OTCPK:BABYF) is a food and nutrition company that primarily targets the infant, toddler, and children markets. Last week, Rich brought the company to the attention of his community members. Since then, BABY stock has rocketed up nearly 50% from $0.31 to $0.46.

Today, Rich talks to Else’s Director of Digital Marketing, Barak Orenstein. Orenstein has more than 15 years of consumer goods marketing and was formerly a brand director at Sodastream, L’Oreal, and Danone.

“We’re in the process of building our brand in advance of the launch of our first toddler nutritional drink in Q2 of 2020,” says Orenstein.

Else Nutrition’s 100% Plant-Based Formula

Orenstein explains that the infant nutrition industry has been around for 120 years, and throughout that time, it’s been dominated by two product sources: cow-based protein and soy-based protein. Both are known allergens, leaving many children unable to consume those products.

“We’re bringing to market the first all-natural 100% plant-based infant nutritional formula,” he says. “So at Else we like to say, ‘we’re not just a formula, we’re a solution.’ And we’re providing a real solution and innovation in a market that’s been stagnant.”

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Else Nutrition’s formula is derived from almonds and buckwheat. It is entirely free of pesticides, hormones, antibiotics, gluten, and phytoestrogens. So not only is it perfect for children with allergies, it’s also the right formula for parents who want to ensure their children are getting the nutrition they need.

Studies show that approximately 1 in 12 families are raising their children vegan. In addition, approximately 31% of Americans consider themselves flexitarians, meaning they are generally open to plant-based diets, though will still eat meat on occasion.

This positions Else Nutrition as the Beyond Meat of infant nutrition. Orenstein says his company has received that compliment a lot.

“We’re humbled by that, but we’re really focused on our vision of providing a foundation for infant nutrition for generations to come,” he says.

Market, IP Protection, and Future Plans

The global market value for infant formula is projected to be $90 billion USD by 2025, with a CAGR of 9.35%. One of the primary reasons this market is growing so fast is that there is an increasing demand for milk formulas with additional nutrition.

Fortunately, Else Nutrition enjoys very strong IP protection, so it can properly capitalize on being the first mover in the plant-based infant formula space. Its formula has been granted patents in 20 countries, including the United States, Australia, Japan, Ukraine, Russia, South Africa, and New Zealand. The company also has a further 50+ patents pending.

In addition, Else is already earning revenue in Israel from the sale of its vegan baby snacks and other accessories. These products generated $900,000 for the company last year.

“Currently we’re focused on commercializing and launching our first product to [the US] market, which will be liquid- and powder-based toddler nutritional drinks. Those are slated to launch in the spring of 2020,” explains Orenstein. “We’ll be following that up with 0-12 month infant nutrition formula.”

Else Nutrition may be a departure from Rich’s traditional stock coverage, but when he sees a company poised for growth, he makes sure he brings it to RichTV Live. Keep watching for more updates about this exciting business.

Let us know your thoughts by joining the conversation in the comments below.

Featured image: DepositPhotos © studioM

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