burcon nutrascience corporation johann f. tergesen president & c.o.o
TRANSCRIPT
Burcon NutraScience CorporationJohann F. Tergesen
President & C.O.O.
Burcon NutraScience CorporationJohann F. Tergesen
President & C.O.O.
Burcon is …Burcon is …
Burcon is …Burcon is …
Mining Canola Meal
Mining Canola Meal
Burcon is … Burcon is …Patented
TechnologyPatented
Technology
Burcon is …Burcon is …
Burcon is …Burcon is …
Exceptional Development Partner
Exceptional Development Partner
Burcon is ...Burcon is ...
... mining the greatestuntapped source of
high quality plant protein in the World.
... mining the greatestuntapped source of
high quality plant protein in the World.
Food IngredientsFood Ingredients
Packaged Foods Market USD$1.97 Trillion
Packaged Foods Market USD$1.97 Trillion
Protein Ingredient IndustryProtein Ingredient Industry
Protein Ingredient Market - Food
Protein Ingredient Market - Food
A Worldwide Industry
A Worldwide Industry
North America
$4.2b
North America
$4.2b
Western Europe$4.9b
Western Europe$4.9b
Asia~$4.0b
Asia~$4.0b
Protein Ingredient IndustryProtein Ingredient Industry
Animal:- Casein (dairy)- Whey (dairy)- Dried egg-
white- Gelatin
Animal:- Casein (dairy)- Whey (dairy)- Dried egg-
white- Gelatin
Plant:- Soybean- Wheat Gluten
Plant:- Soybean- Wheat Gluten
Functionality = ValueFunctionality = Value
Hellman’s Mayonnaise(egg – emulsification)
Knorr Soups(dairy – viscosity &
flavor)
Yves Veggie Burgers(soy – water binding, fortification)
Dr. Oetker Cake Mix(egg white – foaming)
Hellman’s Mayonnaise(egg – emulsification)
Knorr Soups(dairy – viscosity &
flavor)
Yves Veggie Burgers(soy – water binding, fortification)
Dr. Oetker Cake Mix(egg white – foaming)
Macro Forces are all PositiveMacro Forces are all Positive
Plant Proteins:Middle-class Pop’n growth China Health & Wellness trendSustainability EconomicsBSE / e. Coli / Avian FluSecurity
Plant Proteins:Middle-class Pop’n growth China Health & Wellness trendSustainability EconomicsBSE / e. Coli / Avian FluSecurity
Growing DemandGrowing Demand
China's middle class has grown from 65.5 million in January 2005 to 80 million in January 2007. It is
forecast to expand to 700 million by 2020, driven by continued strong economic growth.
(Euromonitor International, July 2007)
“Within Nestle's overall view of health and nutrition as a growth engine, we have identified a $70bn
opportunity in delivering nutrition and affordability in developing markets”.
(Nestle, Paul Polman CEO)
Health & Wellness tops NewsHealth & Wellness tops News
Kraft explains its approach to health and wellness. The main factors driving a
growth in health and wellness in foods are an ageing population, rising obesityrates, nutrient deficiency and consumer demand.
Nestlé is in the midst of transforming from a general food company into ahealth, nutrition and wellness company, "taking on more and more of theapproach of the pharmaceutical industry, focusing on specific 'pipelines' ofresearch."
PepsiCo's number one challenger, Coca-Cola, has aggressively tackled theFunctional beverage industry this year.
General Mills: its three areas of priority are weight management, heart healthand 'proactive health.'
Danone is shifting focus to target growing consumer demand for healthierproducts.
Biodiesel – Canola/RapeseedBiodiesel – Canola/Rapeseed
ADM:
World leader in bio-energy
ADM:
World leader in bio-energy
Animal Protein Prices RisingAnimal Protein Prices Rising
Casein Price
Complementary Proteins Complementary Proteins
OpportunityOpportunity
Canola Production Canola Production
Estimate 2006/2007(million metric tons)Estimate 2006/2007(million metric tons)
USDA estimates: November 2007USDA estimates: November 2007
15.912.7
9.01.0
3.3
5.8
EUChinaCanada (20%)IndiaEastern EuropeOther
Total (47.7)Total (47.7)
Protein Ingredient IndustryProtein Ingredient Industry
Canola meal price benefits from Bio-diesel
Canola meal price benefits from Bio-diesel
Oilseed prices risingOilseed prices rising
OpportunityOpportunity
Opportunity Opportunity
“Health and wellness are the main sources of growth in the soft-drinks industry.
In 2005 global sales of healthy drinks, which include bottled water, fruit juice, and sports and energy drinks, amounted to $138 billion, or 45% of the soft-drinks market.
Growth rates are seven times higher than for carbonated sugary drinks.”
The Economist January 6th, 2007
“Health and wellness are the main sources of growth in the soft-drinks industry.
In 2005 global sales of healthy drinks, which include bottled water, fruit juice, and sports and energy drinks, amounted to $138 billion, or 45% of the soft-drinks market.
Growth rates are seven times higher than for carbonated sugary drinks.”
The Economist January 6th, 2007
Canola Protein - NutritionCanola Protein - Nutrition
Our findings show that this protein source could be of great interest to human nutrition.
In particular, the high biological value of canola protein was remarkable,
presumably due to the high levels of AA, and particularly sulfur AA.
(Bos et al, Journal of Nutrition 2007)
Our findings show that this protein source could be of great interest to human nutrition.
In particular, the high biological value of canola protein was remarkable,
presumably due to the high levels of AA, and particularly sulfur AA.
(Bos et al, Journal of Nutrition 2007)
Supertein™Supertein™
Gatorade-type beverage (left) Citrus soft-drink (right) with 2% Supertein™Gatorade-type beverage (left) Citrus soft-drink (right) with 2% Supertein™
Supertein™Supertein™
2% Supertein in citrus soft drink2% Supertein in citrus soft drink
Supertein™, Soy, Egg and Whey protein, all at 2% in a citrus soft drinkSupertein™, Soy, Egg and Whey protein, all at 2% in a citrus soft drink
Supertein™Supertein™
Solubility TestSolubility Test
Stability – settling testStability – settling test
Soy, Egg and Whey protein settle-out of solution within hoursSoy, Egg and Whey protein settle-out of solution within hours
Supertein™Supertein™
QuickTime™ and aH.264 decompressor
are needed to see this picture.
Puratein®Puratein®
Egg-less CakeEgg-less Cake
Puratein®Puratein®
Egg-less ApplicationsEgg-less Applications
Puratein®Puratein®
QuickTime™ and aH.264 decompressor
are needed to see this picture.
Deal StructureDeal Structure
Royalty on Top Line Revenue
IP Protection
License = Canola Technology
Royalty on Top Line Revenue
IP Protection
License = Canola Technology
Patent PortfolioPatent Portfolio
Seven U.S. patents granted
Seventeen patent applications- Technology & process- Uses- Signature Characteristics
Seven U.S. patents granted
Seventeen patent applications- Technology & process- Uses- Signature Characteristics
Achievements & MilestonesAchievements & Milestones
Applications testing & MTA’s - Ongoing
Production – Supertein & Puratein - Ongoing
Toxicology feeding trialsUnderway
Facility constructionEstimated at 12 months. Starting after toxicology results
Initial production/salesTwo years implies ‘09
Applications testing & MTA’s - Ongoing
Production – Supertein & Puratein - Ongoing
Toxicology feeding trialsUnderway
Facility constructionEstimated at 12 months. Starting after toxicology results
Initial production/salesTwo years implies ‘09
GRAS = Generally Recognized as Safe GRAS = Generally Recognized as Safe Two ways to demonstrate GRAS:
1) Current scientific assessment by an expert review panel, or
2) Show the ingredient was sold in foods prior to January 1, 1958.
Unusual feature is the use of a private expert review panel organized by the company seeking GRAS. Companies must engage highly respected experts whose scientific and personal integrity are beyond doubt.
Two ways to demonstrate GRAS:
1) Current scientific assessment by an expert review panel, or
2) Show the ingredient was sold in foods prior to January 1, 1958.
Unusual feature is the use of a private expert review panel organized by the company seeking GRAS. Companies must engage highly respected experts whose scientific and personal integrity are beyond doubt.
GRAS ProcessGRAS Process
The qualified experts review the available scientific evidence and after consultation recommend additional scientific testing that may be required.
The qualified experts review the available scientific evidence and after consultation recommend additional scientific testing that may be required.
GRAS Process GRAS Process
GRAS self-affirmation is achieved when the monograph, signed by all members of the GRAS Panel, includes the unanimous conclusion of the panel that the substance is both safe and generally recognized as safe for its intended use.
GRAS self-affirmation is achieved when the monograph, signed by all members of the GRAS Panel, includes the unanimous conclusion of the panel that the substance is both safe and generally recognized as safe for its intended use.
Capital StructureCapital Structure
Shares issued : 25,149,259
Warrants : 0
Stock Options : 2,183,243
Fully Diluted : 27,332,502
Current Market Cap. : $129,500,000
Shares issued : 25,149,259
Warrants : 0
Stock Options : 2,183,243
Fully Diluted : 27,332,502
Current Market Cap. : $129,500,000
OpportunitiesOpportunities
Pipeline: Additional applications Product diversification
Example: Anti-oxidants NPPD’s New opportunities
Pipeline: Additional applications Product diversification
Example: Anti-oxidants NPPD’s New opportunities
Why Invest Now?Why Invest Now?
BU Will Be Discovered: Product trials Plant Construction Other ADM Announcement
BU Will Be Discovered: Product trials Plant Construction Other ADM Announcement
Take-home messages Take-home messages
Product trials with global F&B co.’s
Revolutionary Products
Positive Macro Forces
Exceptional Partner
Product trials with global F&B co.’s
Revolutionary Products
Positive Macro Forces
Exceptional Partner
