On 10 January 2019, Holista Colltech Limited (ASX: HCT), an ASX listed research-driven biotech company announced that it was successful in securing the distribution rights for a clean-label gluten-free formulation developed by Veripan of Switzerland in North America.
Due to health awareness about the diagnosis of celiac disease and other food allergies amongst the ordinary people, there is the fastest growth in the Gluten-free products. Within five years, there is an increase in the demand for such products, which got doubled at present. Through this distribution rights, Holista Colltech Limited was able to reach the common mass through its clean-label gluten-free formulation. Through the large-scale production of the all-purpose blend, this is readily available in all bakeries in North America.
The statistics of the US food sales highlights that in 2013, the total Gluten-free food made up 2.8 percent of all U.S. food sales. It went up to 6.5% in 2015. At present, almost 3.1 million citizens have chosen a gluten-free diet. Out of these 3.1 million citizens, 72% of them are free from Celiac Disease by avoiding Gluten.
Holista’s Buffalo which is subsidiary company Holista Colltech Limited based in New York successfully secured this distribution right. Holista’s Buffalo is led by Ms. Nadja Piatka who supplied healthier baked goods to fast food chains such as McDonald’s and Subway.
With the increased demand for gluten-free products, the researchers from Holista Foods and Veripan have developed a natural procedure to produce gluten-free baked goods and bread with better technological and sensorial quality. The product will be easy-to-handle and can be rolled, shaped and baked, boiled or fried without the use of baking pans. The unique selling proposition of the product is its versatility, texture, flavor, and mouthfeel of the Pan free (a mixture of water, baker’s yeast, and tailored gluten-free flours and starches) blend.
The product is safe to use in all types of bread, pizza crusts, flatbreads muffins, cookies, cinnamon rolls, donuts, and pasta. It is safe for use as bakery equipment and even as a home product for baking with the similar taste of earlier products containing gluten.
Through this large-scale production, the company projects that by 2020 would be able to target the market of US$7.6 billion which in turn will generate revenues for the company and also improve the performance of the company.
The securing of the Distribution rights might have created a positive influence on the investors and the shareholders of the company as by the end of the trading on 10 January 2019, its share price zoomed up by 5.455%. The closing price of the share was A$0.058 (AEST: 4:00 pm, 10 January 2019) with the market capitalization of $12.87 million.