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How Holista (ASX:HCT) is taking a big bite out of the US$100bn health food market

Image Source: Company website

Highlights

  • Holista Colltech is a leading global developer of unique healthy food ingredients in a market that’s estimated to be worth ~US$100bn.
  • Healthy Food Ingredients business is the company’s fastest growing division, registering 79% sales growth in the 2022 March quarter.
  • Its product innovations, such as GI LiteTM, can be used to make healthy breads and pasta with some of the lowest Glycemic Index (GI) scores in the world.
  • Holista has received orders for Berjaya Starbucks Coffee and Country Farms in Malaysia.

ASX-listed Holista Colltech Limited (ASX:HCT) is a research-driven biotech company, known for innovating health through natural food and providing healthier alternatives to people. 

The company has emerged as a specialist in delivering first-class natural food ingredients. Holista offers low fat fried food, low sodium salt, low calories sugar, and low-Glycemic Index (“GI”) baked products with no compromise in mouth feel, odour, and taste.

This gives it an important competitive edge in the global health and wellness food market, which is estimated to be worth US$104.3 billion and is projected to grow at a CAGR of 9.2% reaching US$162.1 billion by 2026, according to Research and Markets.

All of Holista’s functional food ingredients are natural, clean-label, non-genetically modified organism (GMO) and produced as per organic fundamentals, designed to fight against diabetes and obesity. The goal is to offer a suite of scientifically enhanced, engineered and tested natural food products to its customers worldwide.

Holista’s fastest growing business division

Holista’s healthy food ingredients business division commenced operations in 2016. With substantial growth over the last five years, it has grown to become the fastest growing division of the company. At present, its low-GI food ingredients are used by several leading food manufacturers.   

The impressive mark of the division in the global market can be attributed to the seven years of R&D validated from renowned research institutes and universities that led to the development of an unmatched range of natural food ingredients.

Do read: High on 2021 gains, Holista Colltech (ASX:HCT) outlines positive 2022 outlook 

Contribution of the division in building HCT stronger

The growing demand for Holista’s Healthy Food Ingredients raised sales value by about 33% to AU$1.4 million in 2021.

Also, in the first quarter of FY22 ended 31 March 2022, good growth momentum was recorded with 79% growth in sales. It was primarily due to increased orders for GI Lite™ and 80LessTM products from numerous international clients, including HWH International, Costanzo’s Bakery, Inc., and Rex Industry Berhad.

Recently, Holista secured an order worth AU$43,000 from Country Farms Sdn Bhd for its all-natural food ingredients. Under the order, Starbucks Malaysia will receive GI LiteTM while 80LessTM will be promoted via Country Farms’ wholesale food catalogue, which goes out to ~4K modern trade stores.  

Do read: Strong sales growth drives Holista’s (ASX:HCT) record customer receipts in 1Q

A mark of recognition (Image source: HCT website)

Make healthier choices with Holista

Holista has developed 80LessTM, a healthy sugar alternative, and GI LiteTM, a clean-label low-GI premix. 

GI is a mark of the ability of different food types that include carbohydrate to raise the blood glucose. Diets with low GI not just lower the risk of developing type 2 diabetes but also reduce insulin levels.

  • 80LESS™ SUGAR

80Less™, a mix of sugarcane-derived sucralose and sucrose, can be used as an alternative to cane sugar in all food applications. It has 80% less calories but 99% taste profile of sugar.  

By adding only one fifth the sugar amount, this product offers a taste that is five times sweeter than sugar. You may use it for various food applications including ice cream, bakery, confectionary, beverages, and frozen desserts.

  • LOW-GI BREAD

Holista’s product, called GILite™, is a combination of natural ingredients that can significantly reduce blood sugar levels caused due to bakery products including white bread.

When mixed with a natural sourdough, GILite™ achieved a GI reading of 53. On a global level, this figure is the lowest level-ever achieved in a clean-label white bread.

  • LOW-GI NOODLE & SPAGHETTI

HCT offers noodle and pasta with a certified GI of 38 that deliver advantages such as weight control, sustained energy and stabilised blood glucose levels.  

  • LOW FAT CHIP

HCT uses ‘pre-soak’ formulation to prepare Low Fat Chip. During the frying process, this formulation helps in lowering overall “fat pull” into the chips.

The chips are less oily, crispier and have a lower calories content as the company uses a patent-pending two-stage wash system to make them. The system lowers the amount of saturated fat and oil in deep fried products.  

Stock information: HCT shares traded at AU$0.034 on 28 June 2022, up more than 17% from the last close. The company has a market capitalisation of AU$9.36 million.  


 


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