AGORACOM Small-cap Investor Relations Blog

Else Nutrition Holdings Inc. (TSX-V: BABY) The award winning, plant-based nutrition company for small cap investors. The company has a $10,000,000 cash balance for US product launch In Q3 2020 with International agreements to follow. Learn More

A Novel Product for Child Nutrition

• ELSE stands out as a unique supplemental beverage for 3-12 year-olds
• It has the essential vitamins and nutrients that many children lack in their usual diets
• Unlike competitor products, ELSE contains no milk or soy proteins, also making it ideal for kids with such allergies

by Dr. Leah Alexander

Ensuring that a child has a balanced, healthy diet can be a challenge for parents.  Every family situation is different, but a variety of factors can prevent children from eating nutritious foods.  Some families live in communities where access to fresh food markets is limited.  Instead, fast food establishments and convenience stores are the only local food sources.  Other families live in areas of food shortages due to climate effects, civil unrest, or poverty.  In other cases, it is simply that a child has developed taste preferences for high fat, sweetened, and salty foods due to introduction during the toddler years.  Whatever the reason, a report by The United Nations Children’s Fund (UNICEF), “State of the World’s Children 2019,” shows some startling statistics (source):  

• 1 in 3 children under the age of 5 are either undernourished or overweight, resulting in stunting of growth, muscle wasting, and obesity
• 1 in 2 children suffers from “hidden hunger,” deficiencies in vitamins and essential nutrients
• 1 in 5 children aged 5 to 19 are considered overweight (BMI >19)

The World Health Organization’s analysis provides similar results (source).  Children worldwide are not consuming the proper nutrients in their diets.

A healthy diet is important for optimal growth and cognitive development.  Calcium absorption for maximum bone density, increase in muscle mass, and brain maturation occurs throughout childhood.  If the appropriate nutrients are lacking, these important milestones are affected.  Iron, in particular, is important for brain function;  research has shown reduced academic achievement in the presence of iron deficiency (source).  Unfortunately, children are not consistently eating enough of the right kinds of foods.  According to the Centers for Disease Control and Prevention (CDC), calories from added sugars and fats contribute to 40% of the daily caloric intake for children aged 2 to 18 (source).  The primary sources of these calories come from soda, fruit drinks, desserts, pizza, and whole milk.  Based on this, it is clear that improvements need to be made regarding global child nutrition.

The WHO recommends a balanced diet of grains or tubers (i.e. potatoes, yams), legumes, vegetables, fruits, and proteins (source).  Vegetables and fruits provide essential vitamins, minerals, fiber, plant protein, and antioxidants.  These all lower the risk of obesity, heart disease, type II diabetes, and some forms of cancer.  A diet with adequate protein is important for both muscle and tissue building.  How much of each food group a child should eat varies by age, gender, and amount of physical activity (source).  When too much or too little are consumed, the risk of health-related illness increases.

A Pediatric Perspective 

In clinical practice, I have witnessed a variety of childhood eating habits.  In the best scenario, some children seem to naturally be “healthy eaters,” enjoying any food put on the plate.  Other kids prefer only fruits, therefore, missing the nutrients vegetables would provide.  Then, there are children who will only eat a few foods from each food group.  While some of these “selective eaters” have a diagnosed developmental disorder or autism, many do not.  Additionally, there seems to be a preference for what I call the “Kid Junk Food Trifecta”:  chicken nuggets, macaroni and cheese, and pizza.  The chicken nuggets are typically from a fast-food establishment, the macaroni is the “boxed” version, and, by pizza, it means only dough, sauce, and cheese.  Although there are many theories as to why children may refuse healthy foods, research has shown an association of food marketing with unhealthy food choices.  Advertisers promote products that are kid-friendly but often low in nutritional value (source).  When seen often enough, children find the advertised food to be more appealing, choosing it over healthier options.

Efforts to Improve the Current Trends in Child Nutrition 

In order to address the UNICEF concerns about stunted growth during the early childhood years, nutritional beverages have been developed by infant baby formula companies.  In theory, by offering a supplement with vitamins, proteins, fats, and carbohydrates, parents have another way to provide essential nutrients.  Creative marketing has convinced many parents that these products are nutritious and beneficial.  Examining the ingredients, however, there are some concerns.  The second or third ingredient is often sugar.  While this added sugar may give an appealing taste to the product, it can promote tooth decay and obesity.  It also increases the likelihood of developing type II diabetes later in life.  Although it may not have been the intention of the developers, the high sugar content of these beverages puts them in the category of a “sugary drink,” something the American Academy of Pediatrics discourages  (source).  The CDC agrees, stating that no more than 10% or 200 calories of one’s total daily calories should come from sugar (source).  The currently available nutritional beverages contain 12-18% sugar, much more than is recommended.  Fortunately, there is a much better option, ELSE.

Else Plant-Based Kids Nutritional Drink

ELSE stands out as a unique supplemental beverage for 3-12 year-olds.  It has the essential vitamins and nutrients that many children lack in their usual diets.  Unlike competitor products, ELSE contains no milk or soy proteins, also making it ideal for kids with such allergies.  Those who follow a vegan diet will find this aspect appealing as well (some versions of the competitor product contain tuna oil).  There are no artificial flavors in ELSE.  As an added bonus, ELSE contains the essential fatty acids docosahexaenoic acid (DHA) and arachidonic acid (ARA).  Although most important during the first 2 years of life, there is growing evidence of the benefits of DHA in older children and adults (source).

There are some special situations where ELSE may be beneficial.  For example, children with inflammatory bowel disease often eat less due to abdominal pain, and their bowel inflammation impairs nutrient absorption.  ELSE could be a source of nutrients that are difficult for these children to get.  Young cancer patients suffering from anorexia during chemotherapy treatments may benefit from this product as well.  In situations of food scarcity, such as during a natural disaster, ELSE could be a temporary, supplemental source of nutrition. 

The WHO has set goals for child nutrition with the hope of meeting them by 2025.  They seek to lower the rates of stunted growth under age 5, to reduce childhood wasting to less than 5%, and to stop the rise of childhood obesity (source).  A healthier nutritional supplement such as ELSE may be just the product needed to help achieve these goals.

Source: https://elsenutrition.com/blogs/news/else-a-novel-product-for-child-nutrition

• Engagement with Covet PR ahead of planned product launch in the U.S.; Covet specializes in alternative foods promotion with clients such as Beyond Meat, Banza, Kashi, Once Upon a Farm, and many others
• Positive social campaign testing results, reached over 320,000 potential customers in the U.S.
• Partnership with “Mom’s Meet”, a community of approximately 100,000 U.S. moms dedicated to exploring new children products
• Product launch in the U.S. expected in late July or early August 2020 (4-8 week delay from original pre-July launch date due to Covid 19)
• Toddler Nutrition product sampling campaign planned to launch on June 15, 2020

VANCOUVER, BC / May 22, 2020 / ELSE NUTRITION HOLDINGS INC. (TSX-V:BABY) (OTCQB:BABYF) (“Else” or the “Company“), a developer of plant-based alternatives to dairy-based baby nutrition, is pleased to provide the following corporate update.

Marketing for Upcoming Product Launch

Else is pleased to announce that it has engaged Covet PR, a national U.S.-based public relations firm devoted to food, beverage, beauty and lifestyle brands. Covet will) support the launch of Else products into the U.S. marketplace in Q3-2020. Covet’s client roster includes impressive, disruptive and leading wellness brands, such as: Beyond Meat, Banza, Kashi, Once Upon a Farm, and many other better-for-you consumer product companies.

“As experts in the plant-based nutrition space, we are thrilled to be partnering with Else Nutrition for their U.S. launch,” says Sara Brooks, Founder, and CEO of Covet PR. “At Covet PR, we are passionate about companies that are truly innovating, making this world a healthier and happier place. Furthermore, as a mom of two young children, I am equally as excited about having a better, complete nutrition solution I can depend on, and I look forward to sharing this brand with consumers nationwide.”

During the month of April, Else executed its first paid test campaigns on social media platforms, showing highly promising results and customer engagement. The brand was exposed to over 320,000 potential U.S. customers, with more than double the industry average clickthrough rate. The clickthrough rate is a widely accepted industry standard indicator of high customer interest in the brand. Insights gleaned from this campaign will be integrated into a sampling campaign planned to launch on June 15th 2020, when customers will be able to order Else Toddler Nutrition samples.

The Company has also partnered with Mom’s Meet, a dedicated community of approximately 100,000 U.S. moms exploring new consumer products for their children. The program will raise brand awareness among this group via digital communications, and will drive sampling for Else Plant-Based Toddler Nutrition.

Product Launch Date

Management is pleased to announce that the impact of the COVID-19 pandemic, on Company’s business was minimal, causing an approximate 2 month delay in product launch which is currently scheduled for late July or early August 2020. Else also expects to finalize its agreement with a leading U.S.-based organic baby formula manufacturer for the production of its plant-based toddler nutrition product in June of 2020.

About Else Nutrition Holdings Inc.

Else Nutrition GH ltd. is an Israel-based food and nutrition company focused on developing innovative, clean and plant-based food and nutrition products for infants, toddlers, children, and adults. Its revolutionary, 100% plant-based, non-soy, formula is a clean-ingredient alternative to dairy-based formula. Else Nutrition won the “2017 Best Health and Diet Solutions’ award at the Global Food Innovation Summit in Milan. The holding company, ELSE Nutrition Holdings Inc, is a publicly-traded company, listed as TSX-V: BABY, as part of the TSX Venture Exchange and as OTCQB: BABYF as part of the NY OTC QB Exchange. Else’s Executive and Advisory Board includes leaders hailing from Abbott Nutrition, Mead Johnson, Boston Children’s Hospital, ESPHGAN (European Society for Pediatric Gastroenterology, Hepatology and Nutrition). Plum Organics, Tel Aviv University’s Sackler Faculty of Medicine, and Gastroenterology & Nutrition Institute of RAMBAM Medical Center.

For more information, visit: elsenutrition.com or @elsenutrition on Facebook and Instagram.

For more information, contact:

Hamutal Yitzhak, CEO, Co-Founder & Director
ELSE Nutrition Holdings Inc.
E: [email protected]
P: +972(0)52-447-9931

Mr. Sokhie Puar, Director of Else Nutrition
Email: [email protected]
Telephone: 604-603-7787

TSX Venture Exchange

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

This press release contains statements that, to the extent they are not recitations of historical fact, constitute “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as “will”, “plan”, “hope to”, “intend” or similar expressions. Forward-looking statements in this press release include, but are not limited to, statements with respect to: the Company’s commercialization of its products and expected timing, expected go-to-market strategy (including marketing, proposed markets, sales, customer growth and market position), and industry conditions including any impact of Covid-19. Such forward-looking statements reflect current estimates, beliefs and assumptions, which are based on management’s perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. No assurance can be given that the foregoing will prove to be correct. Forward-looking statements made in this press release assume, among others, the successful completion of Else’s proposed scale-up for its products, restrictions due to Covid-19 will not result in additional unplanned delays, and such statements are intended to apply only to the infant formula market for ages 12 months and above, and having all necessary regulatory approval as required by each target market. Numerous risks and uncertainties could cause the Company’s actual results to differ materially from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements, including, but not limited to: consumer demand for the Company’s products, whether the Company’s current and future products achieve commercialization, uncertainty regarding material changes in laws and regulations, retention of key personnel, the Company’s ability to expand into global markets and competitive developments, and the impact of Covid-19 on the planned business operations. The foregoing list of factors is not exhaustive, and other risks and uncertainties not presently known, or believed to be material, to management Additional information and other factors that could affect the operations or financial results of the Company are set out in the Company’s Filing Statement dated May 14, 2019 under the heading “Risk Factors” and may be accessed through the SEDAR website (www.sedar.com). Readers are cautioned not to place undue reliance on any forward-looking statements, which reflect management’s expectations only as of the date of this press release. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law