Agoracom Blog

VIDEO – Else Nutrition Has $30M In Cash And A $2.7 Billion Dollar Shareholder To Launch Plant Based Toddler Foods Around The World

Posted by AGORACOM-JC at 3:14 PM on Monday, October 26th, 2020

Welcome to be on the press release a production of AGORACOM in which we speak with small cap executive right after they put out important news,  with us again we’re happy to have her back Hamutal Yitzhak. co founder and CEO of Else Nutrition trades on the TSX venture on the stock symbol B. A. B. Y. baby and for our friends the U. S. under BABYF  for those of you new to the story it’s gonna be some yeah even though ELSE has been a real market Darling in 2020 this is the Israeli based award winning plant based food nutrition company a give small cap investors not to participate in this global paradigm shift towards plant based clean label foods and more than just lip service the company now has $30M in cash thanks in part to be backed by a 2.7B Hong Kong listed conglomerate that owns a proxy 11.6 percent of the company plus non dilutive rights that they led a recent 25.7M investment and their goal is to help the company signed international agreements which is great when you consider the fact that the company’s been awarded top times in 22 countries with 44 countries pending including our recently receiving a key USDA certified organic certification to launch the world’s first 100 percent plant based non dairy non soy baby formula in the US where they’re already going direct to consumer via Amazon and their own Estore as well as grocery and natural food stores thanks in part to a distribution agreement one of the biggest in the country in the industry here to talk about all that is Hamutal welcome to the show, Hey hi George how are you I’m very excited to be here with you. Well great I want to congratulate you on this recent financing that’s a fantastic achievement and let’s talk about that you know would we know the total not the total number of dollars raised what are you going to be using this war chest for these proceeds. Yet will still first of all them we plan to use proceeds mostly for sales and marketing them our digital social endeavors and social influencers and and also retail promotions in store give it is for sure I am absolutely R&D clinical studies them new product development and scale up stick we’re doing all the time and some inventory build up which is something that day as we roll out and into the retail space is going to be growing at an exponential growth rate and we are also and investing in our own production capacity for some of the ingredients which are holding our our I mean we have a certain I. D. for certain ingredients which are exclusively and manufactured for us and in certain places and we would like to take that into the company which is the most that you’re valuable precious asset of the company and of course working capital and then general corporate purposes saying on top of everything. I want to go into the specifics about you know distribution the U. S. and all that but first you know this financing was was led by your strategic investor H &H global tell us about that relationship where it sat and where it’s going. Yes so H&H backed as you said is that in Hong Kong and Hong Kong listed tech company with a market market cap of about them almost $3B and annual revenue of about 1.5B and in 2019 and I think they’re on the road to become a global leader in advanced baby and adult nutrition as I see em there through their international presence down they have grown to have and 4 brand centers in Australia China France and United States and R&D centers as well in China and France and some other countries and as you said they’ve increased their stake in that and else and we are working all together very closely and to them actually launch a product in Europe in their rankings in the friendship through their French operations which is a very strong operation in the baby and infant and space am and we are we’ve started negotiating with them also and the Chinese from but this is only very actively preliminary we’re building the strategy and that the whole the whole business plan to penetrate the Chinese cross border platform which is a very strong and robust operations that they’ve got and the Chinese market of course is a very important market for Else it actually represents half almost half of the infant and nutrition market globally. Well that’s exciting because I know you stated that from the first day that we started doing interviews together that you’ll one key part of that relationship is to help with international expansion into here for me now that you know conversations are beginning for France and China and so on that’s fantastic news and you know it just supports why they continue to lead financing rounds and maintain their racial ownership sought you know that that that alone I think speaks for itself let’s talk about the US market you officially launched your toddler. That was more on the eve calmer side can you tell us more about the U. S. launch strategy because I know you’re going direct to consumer as well as right into the physical grocery store let’s talk about the U. S. launch strategy because that’s obviously a big one as well. Yes as you probably know he already met and mentioned that we are already on line with our Estore and the Amazon store which has been open about 2 weeks ago and  At we already see a lot of traction and there have been disclosed at the sales you’ll be seeing that in them financial reports soon and so let’s let’s speak a little bit about and first of all our our marketing strategy you are go to market strategy as an overall it is an overarching asking over arching aspect so we focus on 3 target groups which we have identified while researching the north American market Ephesians the flexitarian and which are one group the allergic intolerant families and that I call them healthy progressive consumers those who really know back everything that that that there is on the reading list and they prefair at the minimalist standards that as little ingredients as possible in their foods these are 3 groups and these are at our elite doctors and we see great traction in the great acceptance of the brand in in those groups and there also are masters they keep reaching our story on social add channels to their friends and family and to have a room they can add their speaking in between one another and we’re helping them to do that and for to amplify that using a very big community of influencers and plant based parent in in the client base and parents faced with who will be promoting the brand and and they are so enthusiastic to do that even more than doing just a business with us because they’re reading start cited about having something right your friend so new that really you know enables the choice for parents which hasn’t been there for so many years yeah so they’re happy to be part of a double bonus one is obviously as influencers they’re working with you that’s great but the second point they’re promoting a product that they know is going to make a significant impact is it in toddler health so that’s a. Yeah that that’s a word that’s a win win for our for everybody. Sure it’s not a surprise go ahead go ahead yes their bonds to the rack to this brand is is more than just business it’s really emotional they’re very excited they’re kind of an impact mission to do something else to do something better for everyone and I’m sorry all emission. Yeah I did your media if you got passionate influencers are it’s hard to lose when you’ve got passion and influence behind it and it shouldn’t surprise you how Mattel right I remember that a couple months back you had done some surveys online about the product in the country before you started commercializing before we start launching you had some pretty good results there right from from surveys about how people were going to be accepting the product how likely they were to purchase correct. Absolutely we see that already in action that that we we’ve seen as 60 percent of them of the hand of those who were surveyed and it was then a representative sample of the American  parents and in the right ages as so we’ve seen 60 percent and willingness to by the brand and in whatever price they will be in in the in that actually in that S. R. P. that we’re talking about and and there was no there was no way I am how do you say that there was no flexibility and in terms of I mean if you would that have. Grease the price a little bit there they would still want to buy the product because there’s something about this sure the need is so big then there is no there’s no lab price and flexibility on that I mean there’s and a very very high and strong demand. And to get such an option in we can see that also and I’m with them celebrity influences that are and getting engaged with the brand we have. Several of them already approached us and am actually showed interest in working with us which is something quite give me one. And we already have one engage with us and which is Hilaria Baldwin the wife of Alec she’s a tier one influencer in the parenting and plant based based them she will help us yeah I mean she she approached us by searching for a better nutrition for her daughter she’s a mother of 5 and them so she’s she will be helping us through creating social media video content and that will actually highlight her findings and her journey as a plant based mother and so this is another sign of them of the traction of the vibe that you’re creating because people are really interested and even celebrities are seeing the value that we bring into that market and another thing that we’re going to do is after the elections will be launching an overarching euro campaign and am about and and else world that you’re creating which is a different world wow okay that’s good because I need to say I can’t wait till I can’t wait to see that absolutely said it’s really an exciting video it’s an it’s an animated video and that we’re working very hard on social and influential marketing channels to bring else to to the US public at work this. Well that’s also gonna pay off in what I’d like to call the real world you’ve got you’ve got social media influencers you’ll direct to consumer E. commerce Amazon but you’ve also got you know the fact of matter is we still got store shelves all across America and you need to find a way to get there and seems like you have you signed a key distribution agreement with one the largest most well regarded fresh natural organic specialty Ford food distributors in America and North America I thought that was a phenomenal. Yeah how important is this to the company. Yeah well. K. he is this is the distributor and it’s one it’s released one of the largest and most regarded and natural food and natural products distributors in North America the F. 57 years of experience in that in this space and actually this agreement to open distribution for else over they they got over 16 distribution centers across North America so this will be opening at ground breaking at this will be opening at stop thousands of store shelves in the United States where else and so. I’m actually we’re going to start rolling out with them from the vendor and and they’re gonna start Making that our products from 2 and distribution centers in California and Oregon right and they’ve got like are above 5000 employees in North America and they’re serving potentially for US 30000 retail outlets so just think about the potential and growing into that am. So this is this is really asking for Else in them it’s means that our products will soon be available to customers at their favorite stores across America and it’s it’s really it marks a major step in distribution and we are thrilled to be working with the real leader in natural food distribution I think that also serves as another indication of third party validation it’s very important because it’s one thing for ham Italian sack and her team to come on say we got this great product is the best product and world but you’ve got multi food conglomerates out of Hong Kong you’ve got the biggest some of the biggest distributors in North America who are participating with you and that you know they they just don’t do that unless with their expertise they’ve already determined right that the you’ve got a great product so I think that’s fantastic. Validation that we also we already see and I mean there is a great and acceptance it with them so many retailers that we’ve already are in talks with me it’s just an underpriced this through them and not through them some of them are not through them but it’s all coming from our and you know from the retail brokers that we are engaged we have 5 regal brokers and even gave an asset right you a few months ago but then there started working so now they have the distributor so we’re all set to start really rolling out immediately and we we can already see that happening with so many changes that we are talking to alright. Yeah you got your supply chain totally lined up right now metallic. Production inventorydelivery all that’s already read it I know it is but be good for going on to just gonna reaffirm that referring we at we are we just I mean we have announced and that we have that already and produced a second and a second manufacturing that run which was 3 times in volume it’s was produced successfully it’s currently being packed in them so and and the other at the next run he’s already booked them for November so we’re really rolling out and those things we are all set and we are preparing for the growth so everything is going to be in place once we need that. Give us an indication now is you’ve got all your ducks in a row you got supply chain lined up you got funding lined up you’ve got the distribution agreements lined up you got everything lined up what is rolled out to you very much fact that that the the the key he is started distributing November through California Oregon distribution centers take us through what may be the next I know 6 to 12 months looks like in terms of continue roll out with them and your other disturbed is good we’re all forget about them they’re also very sick of instructors you know do you have any sense of it I don’t want to pin you down in numbers but do you have any sense for what the rollout would look like over the next 6 to 12 months across North America. So excited first and foremost will be rolling out into more and more retailers which is news in itself it’s it’s the most exciting news and for investors to know that we are expanding and we are selling more and more  of course the awareness of the brand will be much larger as our neighbors and our and. And in marketing will grow of course after this M. financing round if you can afford a much stronger and spend in marketing your at we’ll be announcing them of course material listings Hey and with the larger nationwide retailers as they happen. And there will be several new product launches in the kid’s space and then the baby space and as well as new territories graduations and with aging age and independently at we will start the pathway of clinical delegating some of some of them I can say miraculous life changing impacts that we already see with else while that’s saying a lot while we’ve seen indications and saying it’s only indications is only incidence with certain consumers and which currently are very few but these things are really happening that parents are scared testifying about healing effects that else has. Parents are saying that they were there children were healed from P. C. mask from allergies they are starting to gain weight with not not being able to do so at with other formulations that that they were using and they’ve used everything that was there so things like that needs to be validated and we’re starting to and consider a clinical pathway to validate that. So this is something we’re going to do in the next months and needless to say we we there are long term processes that take place in the company which their immediate and outcomes are not seen now but they’re always in progress and they will eventually have a great impact on the company’s performance I’m referring to the processes such as that you know them that breakthrough plant based clean label infant formula for babies that from 0 to 12 months for example or things that we’re developing without contrition there are things that are longer term and they’re taking that they would take more than a year or even 2 years but these things are on the go I mean we are doing that we are on the pathway and this is something that investors don’t necessarily see or get the notion off so it’s important to mention that am. So I think more or less this these are the things that we we can anticipate in the next in the next coming months well that’s good that’s a great pipeline of things that’s a that’s a fantastic in person I know it’s not around the corner but I can’t wait for the adult versions of of your products you know I’m Greek a traditional meat and potatoes eater my most of my life but I’m starting to really see the value of all plant based clean nutrition eating and I would I don’t know what to wear to look quite frankly I don’t know what to trust but I know that I can trust products coming out about so at about so I can’t I can’t wait to see you guys launch that surely I can tell you that sometimes when I forget to order my my lunch in the office I just definitely be Else that colder and just drink it and it’s so full of energy and he brings me to a and gives it a completely different day when I when I’m on that diet. So I just can tell you from my own my own experience that I can recommend that will you be having distribution obviously the like Canadians who are watching this as well we know that you’re going to be going after U. S. market will it be in Canada soon as for the north American just return description you S. for now yes it is shipped to Canada from Amazon I mean not present from our Estore well working on and possibility that each will be shipped to Canada from the store but we don’t comply to the Canadian regulation in terms it’s just a matter of that changing some vitamins and minerals we have to create a different formulation right another run at different run for the Canadian market which is something to consider to do but first we wanted to focus on bringing the product into the U. S. market and that was that you know focus focus focus always focus so we wanted to do that and now we’re we’re creating additional protections for additional jurisdictions service Canadian is on that you know is on the table it’s not yet there we’re working on the European French formulation yeah those are bigger populations right Candice still small market relative to where you’re going after. In terms of which what how big is the markets we are dressing cell but absolutely we are very confident that about the fact that our many of our investors are Canadian we’re a Canadian company says it’s in our hearts and we are working to bring a Canadian firm relation as soon as possible back with that you know with the limitations of what the company can do at a certain time and. And don’t worry about that in the meantime the Canadian the Canadian audience will grow with the company as investors and eventually and when you get there they’ll grow physically with the company as well from from a product point of view and haven’t talked to make this considerations in terms of that you know the profitability and the yeah and to do this prioritization for themselves as well. That this is something that I’m sure that they want to congratulations I think god’s fair to say I speak on behalf of everybody when I congratulate you and your team we know that’s a big team effort over there for sure when you know we’re not just saying that as an empty platitude but big congratulations I feel a lot of pride for the fact that we’re partnered with you but I’m sure that I speak on behalf of everyone and and how you and your team to develop this company from us financial security point of view from a product point of view and now distribution point of view and what it sounds like you know more research and development point of you coming in the next 6 to 12 months with other territories last word to you to to speak to your shareholders. Yes I really want to thank all our shareholders and for their trust and for their faith and then in plant based that in in general and in Else and specifically are particularly and I can tell you that we are doing it again and saying that again we are doing our utmost to make this company a great success on a global scale and we have a wonderful team that works days and nights for that purpose we are really driven with our mission and I think it’s the most important thing because we’re not just doing business with changing thought something for the best work for the benefit of children and and and and babies in this world and they are the next generation and they they deserve better so here here we are. Well that’s a great thing about these videos will and that that is that the passion your passion really comes through here whereas a lot of companies will want to talk about just the numbers and just deal maybe their stock price something like that it’s clear how passionate you are about the space about the product about helping families parents toddlers and eventually big people but it really comes through. Thank you so much for joining us today I know you’ve got a lot of your plate we all know you do with the fact you take the time out like this is deeply appreciated. Thank you so much he was always it’s always a pleasure to talk to you and this was that like that again thank you well one of these days with the travel restrictions are done I guarantee I’ll be flying out to Israel will be doing it in person from the offices give everyone a great a great you know personal interactive experience with you but thank you thank you so much. mail out of that else products that’s what I need if that’s what needs to happen to get the old products all flights to and I’ll do whatever that’s how valuable they are yeah absolutely okay. Everyone at home you’ve been watching or if you listen via podcast how Hamutal Yitzhak ico founder and CEO of else nutrition the company trades on the TSX venture exchange on the stock symbol B. A. B. Y. now you know the relevance of that stock symbol if you didn’t know before because you knew the story and for our friends the US under B. A. B. Y.F after what’s left for you to do now if you haven’t already done it is your due diligence get to the agora com hauled for else nutrition take a look at the profile page because we know there’s a lot of information consumer this a disruptive companies in the food nutrition space and yelled new investors won’t understand everything the company is doing just to watching one video so get to the profile read through there to really get a grasp of it watch a couple videos I saw I have strongly recommend that we’ve already done with Hamutal and then make sure you get over their site to complete your due diligence and hopefully you discover your next great small cap company thanks for joining have one have a fantastic day the next time.

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